REAL ESTATE ASSETS GENERATE CASH FLOWS WHEN THEY SATISFY THE NEEDS OF THEIR USERS.
WE ASSESS THE PROPERTY’S STATUS QUO AND ANALYSE ITS POTENTIAL.
In the first investment phase, “Recognising Value”, our CB Transaction Management, Fund Management and Capital Management subsidiaries assess the status quo of a property while already considering value-add potential: How can we develop the property, how can we raise its value, and what proceeds can we realistically expect to realise upon subsequent sale?
We have the in-house capability to perform our own IT-based, real-time comparative analysis, using our own system data, on all of the offers which we receive. Through this standardised and largely automated deal screening and acquisition process, we are able to assess roughly one hundred property purchase opportunities, particularly in the residential market, each and every day at all our target locations throughout Germany.
MAXIMISING A PROPERTY’S VALUE FROM ACCQUISITION TO DISPOSITION
Once properties or projects are acquired, the CB Asset Management, Construction & Development Management, Property Management, Service Management and Facility Management subsidiaries come into play, with a rigorous focus on “Raising Value”. In this phase, CapitalBAY distinguishes itself through a fundamental shift in paradigm, structuring its processes for raising value around property users, while at the same time orienting its activities to maximise subsequent saleability and sale price. Only when properties are aligned to the actual needs of their users can these investments generate maximum cash flows, whether through lease or purchase.
WE ESTIMATE THE PROPERTY’S ULTIMATE REALISABLE VALUE AT THE TIME OF OUR INITIAL INVESTMENT.
Our final value creation stage is “Realising Value” – and here our motto is “ABC – always be closing”. Once value has been recognised, acquired and raised, it is our CB Sales Management subsidiary which is tasked with optimally realising this value through property sales from our portfolio. Through the end-to-end integration of our property investment process, using our own methodologies to build long-term value and capture market dynamics, we are uniquely able to estimate the ultimate realisable value at the end of the investment cycle even before the initial investment is made.
SEEKING OUT VALUE IN REAL TIME
The digital platform which centrally supports our staff is based upon our own proprietary transaction-support software. This sophisticated application helps us to find property targets matched to the investment strategy, to automate the valuation process, and to efficiently manage due diligence.
OUR SOFTWARE FOR REAL ESTATE VALUATION
Based on the ideas in his book “The Dynamic Method”, George Salden developed 21st, a transaction and analysis software solution able to capture real estate properties in a way that these investment assets can be accurately measured and optimally managed.
This powerful software, developed and maintained by a team of real estate and software professionals, provides investors, brokers and real estate professionals with extensive, multi-faceted expertise that goes far beyond the capabilities of traditional static tools. Using “big data” analytics, it is able to calculate and map out predicted future market cycles and rental trends. It considers the entire context and dynamic environment of the target property, factoring in not only location but also the local socio-economic and market trends which influence the location’s future value. By providing a market-based valuation benchmark, pricing deviations can be quickly identified and risks to portfolio holdings reliably assessed.
By providing market analysis as well as automated conversion into standardised property parameters and financial metrics, the 21st software solution serves as a vital extended arm of our Transaction Management activities.
GEORGE SALDEN’S BOOK “THE DYNAMIC METHOD”
Early in his real estate investment career, George Salden recognised that conventional static valuation concepts for real estate can provide only a very vague indication of future property values because they generally fail to adequately capture the market dynamics and cycles of real estate usage. The result was his ground-breaking book “The Dynamic Method” and the original software application 21st (formerly “Hume Valuate”), which today continues to prove its worth in daily practice.
The competitive advantage: ultra-fast reaction times and maximum flexibility, across the full range of real estate assessment processes.