Secondary Markets
High returns in real estate have been synonymous for years with the US markets, now central Europe - Poland to be specific, is in our view the market of opportunity. In these times of great demand for quality assets, we’ve found it beneficial to concentrate our efforts in the “secondary markets” of the real estate world. Cities with maximum 500,000 residents fit our model of investment and became our focus of operations. Due to enormous pressures from the investment community especially in the US, real estate deals are hard to come by. Although scarce some opportunities still do exist and we aggressively pursue these.
Recognizing Potential
Added value opportunities are what we look for and specialize in. An important characteristic of the existing real estate market is that the purchase price of the asset is based primarily on the current income and occupancy level. Nationally active partners on location help us identify and translate opportunity to the income potential of the future. By identifying and acquiring undervalued properties at attractive prices, located in stable markets, we create high return opportunity. This is achieved thru our aggressive management effort as well as investment and repositioning of assets. The redeveloped property value increases dramatically limiting the risk exposure.
Diversification
As a foundation of our company’s policy we recognize that the size and stability of the real estate market are important factors to the investment success. It is necessary though to take advantage of diversification of asset types; into office, retail and residential. All this to minimize risk and increase yield potential. The US market potential qualifies as one of the best suited for German investors. As for the European market we are concentrating on emerging central European economies as best suited for our expansion. Delivering constant and stable returns with limited risk is the business we like and practice. In order to identify and secure best investment opportunities in the local markets, it is essential in our view to team up with local real estate partners. They have the most extensive knowledge of the market and are best suited to identify and deliver right opportunities. Grundwert in this scenario provides investment capital and oversees execution. Our success is thru extensive in house due diligence process where we qualify prospects and projects and make final decision as to its investment qualities.
Management Style
Our team of outstanding professionals offers: vast understanding of real estate investment as well as experience in management, assuring proper due diligence and attention to detail. All these qualities guarantee best results when serving our clients as well as maximizing returns to our investors.