Property Restructuring

GPM - Your specialists for property restructuring

Property restructuring refers not only to the technical refurbishing of a property but also to its economic restructuring. Each year, many estates have seen financial distress or are near insolvency due to mismanagement or lack of management.

Reasons for this are:

• An unfavourable rental status, often caused by a lack of professional letting management
• Unfavourable mix of tenants and industries → a hazard in a difficult economic climate
• Lack of tenants relationship → drain of tenants
• Focus on the wrong segments
• Neglect of technical care and hygiene of a property
• No budget strategy, lack of reporting and controlling
• Organizational blindness
• Lack of technical and structural development as well as site development of a property
• Bad financing conditions (e.g. excessive interest and repayment rates)
• Inadequate and/or lack of marketing of a property
• Etc.

Rely on an experienced partner

Each of the above listed reasons may lead to the situation that an interesting property, which is full of potentials, ends up in serious financial distress. We have therefore reinforced the sectors property management and facility management by a third segment: the economic and technical restructuring of properties that are in financial difficulties and face threatening bankruptcy.

You pay only for success!

Our services are free of charge for the first 6-9 months so that no additional costs will be incurred for management services during this exceptionally difficult time. If the property has successfully been restructured and stabilized at the end of six or 9 months, we will charge a contingent fee for the improvement and management of the property and a fixed monthly fee will be determined for the subsequent management services. The exact remuneration agreement (defining the form and schedule of the contingent fee as well as the amount of the monthly fixed remuneration) will be determined individually in cooperation with each customer. This means that costs for the management will only be incurred by our customers if the property has successfully been refurbished.

The process

1. We conduct a thorough analysis to determine the current condition of your property/properties. For this purpose we will need to have access to all records, we will conduct an on-site visual inspection of the property/properties and talk to employees.
   
   
2. Based on this information we evaluate whether an improvement of the property / the properties is economically worthwhile. If we decide in favour of an improvement and accept the project, we develop in close cooperation with our clients an individual service catalogue as well as compensation agreements which will be put down in an agreement.
   
   
3. Thereafter, we develop a precise restructuring plan for your property/properties. We identify the cause of problems and offer solutions. For this purpose we will work out a detailed after-refurbishment profile for your property/properties. This restructuring plan gives you a detailed overview on our strategy.
   
   
4. Then the actual work of implementing the restructuring plan begins. This is typically accompanied by dialogues with tenants, negotiations with the banks, or we are working on the pro-active lease-up and on the renewal of tenant agreements, we develop a detailed budget plan and reduce the costs. We will, of course, always keep our clients informed on the status of the project.
   
   
5. Once the restructuring has successfully been finished, we will receive our compensation and we will continue to manage your property/properties as agreed. If desired, we will also manage the selling of the property/properties subsequent to its/their successful restructuring.

Contact

If you are interested, please contact us via our inquiry form.