It is all about the asset
In an increasingly competitive market it is more important than ever to be selective and thorough, looking at every deal in great depth and from every aspect, Alexander Fischbaum, managing director, AF Advisory, told Real Estate Day.
‘We see a lot of capital availability from an ever wider range of sources, including many new entrants with specific requirements and a specific project,’ he said, proof that investor demand is definitely there.
‘We source a lot of core plus and added value deals for our clients, we run a slide rule over them and what we see is that 90% of deals fall away and 10% we think are interesting that might have been overlooked,’ he said. ‘Of these, 5% we get excited about’.
Once the potentially interesting deals have been identified there are many aspects to look at, he said, such as ‘the development of a particular location, the additional transport infrastructure that is being put in, the alternative uses, the potential changes of use. At a time when the market is so competitive, whether we source or finance the deal, you need to look at the deal, the value behind it, what value you can create and how, on a low current yield in historic terms, you can create some outperformance if the market shifts away from under you.’
The goal, Fischbaum said, is ‘to have longer income, better income, additional flows, different use, everything to really get into the nuts and bolts of the single asset. For us it is not about sectors or any other strategy but it is all about the asset.’
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