Operational Real Estate Investments
Transactions involving operational properties tend to focus on the specialised operation of a property and on the operator. From an investor’s perspective, there must be a healthy balance between minimising operational risks and leveraging the opportunities arising from the lease and the property itself.
Operational properties as special opportunitiesThe sale of an owner-occupied property by its operator to a real estate investor (primary sale) is a transaction requiring not only depth of empathy for the client on the part of the sales consultant but also an in-depth understanding of the sector, the economic situation and the financial implications of the transaction. The investor must be made aware of the opportunities and risks clearly and concisely, so as to enhance its liquidity. The primary objective is to maximise certainty in the transaction whilst achieving the best possible price. Ultimately, the sale of the property must optimise the operator’s financial resources.
Sale transactions between two professional investors (secondary sales) very often determine market volumes and pricing trends. In many of the niche markets within the overall operational property market, the volumes transacted on the secondary market represent only a small fraction of total owner-occupied property holdings. However, interest in these ‘alternative investments’ is growing steadily because the leases are generally long-term and usually offer significantly more attractive yields.
From hotels and healthcare properties to every type of niche propertyAs a leading global investment advisor with worldwide access to both highly specialised and well-capitalised investors, we set ourselves the goal of managing the most efficient processes for our clients, offering total transparency and audit acceptability.
Whilst hotel properties have long been an established part of our services, we can proudly claim to be the market leader in marketing healthcare properties, and to have made a significant contribution to establishing this sector as an asset class. This justifies our claim to have made operational properties from other sectors, such as leisure, sports and infrastructure, more liquid and marketable.
Data-orientated market knowledgeThe quality of our advisory service for the purchase and sale of operational properties builds on comprehensive market knowledge, based on an in-depth analysis of market data. Our close links with other CBRE teams means that our market knowledge extends beyond the niche sectors and asset classes, which means that we are excellently positioned to advise on ‘mixed-use properties’.
Overview of services
- In-depth advice on the purchase and sale of operational properties
- Reliable data and process management of single-asset and portfolio transactions
- Managing structured marketing and transaction processes
- Operational and commercial analysis of operations and the underlying market
- Defining target groups and the development of sale strategies
- Assistance with contract negotiations and due diligence reviews
- Close co-operation with CBRE Investment teams across every use class and region