What is Real Estate Asset Management?

"bottom-link">incorporate a performance based element into any
Especially foreign Real Estate Investors are currentlymanagement fee, including our own.There is also the
looking for a "Home Base" in Germany. They do notaspect of measuring the performance of each
have their own offices here but bought substantialproperty in a portfolio and the entire portfolio against
property portfolios throughout the last months. Justthe business plan at the outset. This aspect is reflected
Property Management does not achieve thein our performance focussed reporting. A separate
investment objectives of stable development of theposting for Performance Measurement will follow.
portfolio value. A growing number of Investors are5. Reporting in compliance with the needs of the
looking for experienced partners in Germany.Theseinvestor/owner. We develop a reporting structure and
requirements are met by few Asset Managementmake this part of any contract with Property
Service providers in Germany. What is their job?Managers and/or Facility Managers. It defines time and
 Asset ManagementAs Asset Managers we look atcontents of any regular or ad hoc reports. A summary
the entire existing portfolio with regard to any plannedreport by the Asset Manager is available to the owner
portfolio changes.on an internet based Client Portal and is the Executive
1. Operational Cost and Income Structure. WeDashboard.Applying the Balanced Score Card
investigate the cost and income structure to identifyphilosophy this report contains the actual data and
opportunities for improvement. This can be activeperformance against agreed targets. Besides the
Supply Chain Management, combining the entireobvious like rental income, this might include tenant
portfolio and in the next step bundling the buying powerturnover (as a measurement of the customer care by
of different portfolios we manage in negotiations withthe Property Manager), the meeting of reporting
suppliers.deadlines and financial management and other goals
2. Capital Expenses Based on the results of the Duethat are important to the investor.Operational reporting
Diligence. We establish a rolling Capital Expensesis also of growing importance for lenders. Not only in
Budget Plan which is kept up to date with the actualcases of securisations extensive quarterly reports are
needs. We identify those investments that might bringrequired. If you are interested to find out more about
a quick win through improvement of the rental situation.our reporting tools please check back weekly.
3. Organising and Supervising the Property6. Risk Management. Because financial institutions have
Management. Based on a detailed scope of works weto perform a risk assessment before any lending, if the
develop based on the investment philosophy of theinvestor can show that he has his own risk
investor, we help to identify and contract appropriatemanagement in place it will influence the interest rate
service providers for Property Management.Mainpositively. We establish and agree a risk matrix with
tasks for the Property Manager is rent collection,the owner and actively manage it during the
dealing with tenants and service providers,operational phase.
maintenance and repairs within the framework set by7. Outline Proposal. As a guideline we have prepared a
the owner or his Asset Manager.generic Outline Proposal which will be detailed in each
4. Performance Measurement is key to our servicecase for each investor and Property.For more detailed
philosophy: What you measure is what you get! (alsoinformation about Real Estate Asset Management
see article "Performance Measurement in Real Estateplease visit the website of Berlin Portfolio Ltd.This list is
Investment") We have developed a system ofnot complete by any means but should provide an
Service Level Agreements with Key Performanceinsight on the main deliverables of the Property Asset
Indicators for Property Management includingManagement Service.
performance reviews and evaluations. We always