PURCHASE, SALE AND INVESTMENT OF COMMERCIAL PREMISES
We intermediate in the purchase and sale and investment, creating added value for owners and investors of commercial premises.
Knowing the evolution of assets allows us to detect where to invest with the least uncertainty. with the least uncertainty. Being able to measure the real value of each location prevents investors from positions whose accounting numbers are initially attractive, but not in line with the market, thus avoiding inappropriate investments.
We create added value in the assets, being able to manage from the search for the investment, predict the evolution of the real value over time, lease it improving the contractual conditions with our MIMa method and manage the asset over time. We also take care of the relationship with tenants and communities, as well as any management with public agencies and legal processes, providing a comprehensive service throughout the process of the asset.
From the beginning, we work with our highly qualified external team, formed by professionals in each area, all of them with specialized careers in retail. Thus, our clients can invest, accompanied by specialized professionals with great knowledge of the smallest detail, regarding everything that concerns the retail universe and its investment .
We work for quality, rather than quantity...
We focus on quality, which is why, in addition to financial data, we have a very specialized knowledge of retail and consumer goods. This allows us to invest in properties that, over time, do not show defects or weaknesses and that, on the contrary, are protected against unexpected changes in the market.
This is made possible by our knowledge and continuous R&D, which has allowed us to create our own method and know-how to understand people's behavior and measure it in order to anticipate trends and protect ourselves from atypical situations.
We can monitor the health of an asset portfolio with short, medium and long-term analysis, by measuring the oscillation over time of the real value of the asset and thus anticipate upward and downward market trends, investing in a way that is protected from industry developments.
Our continuous study allows us to have a vision of what is happening in society and where it is going, which enables a more accurate prediction, which is the basis of the CIMa method, which tells us the future value of each investment, and the iTB gives us the possibility to measure to corroborate it.
Thus, different investment decisions can be made according to the time strategy, where the investor will have a vision, not only of the current value of his investment, but also of how it is expected to behave over time. In other words, to know which investments will have no relevant value over time and which, therefore, should be avoided, beyond the present data of the impact per m2 or profitability.
We also measure and monitor with our index the areas, streets and blocks of the city, which allows us to detect which are the new retail protagonists and the ones that will have the highest appreciation. In this way, we can help investors manage their investments and, in addition, lease their properties more efficiently than in the traditional way.
Case Study: El Mercado de Fuencarral
It was one of the record European retail operations carried out at the time of greatest uncertainty during the 2008 crisis, generating, two years after its purchase, a profit of 35 million euros and multiplying 4.5 times the capex of the operation.
This uncertainty meant that investors did not dare to buy anything that was not already leased. On the other hand, the brands could not make the efforts we needed, making the operation unfeasible as the rest of the market was proposing.
We were able to show the investor, thanks to the SMEx (what is now the TrueBroker index, iTB), what the real value of the property was, by being able to measure it and therefore have a different view of its real market value. Our iTB tool allowed us to analytically demonstrate to investors, and then to tenants, what the real value of the property was.
Since it was a 2,000 m2 facility and there were theoretically only 4 or 5 brands that could be of interest at the outset, we did three things:
- First: to draw up, one by one, plans of the sales rooms of all the large properties in the central area of Madrid and to measure them, in order to carry out a study with our analysis method.
We found out the prices they were paying for rent and the turnover they might be making. We cross-checked this data with the iTB's measurement of the number of real consumers that passed through the doors of these businesses each year. That allowed us to know the economic effort they were making per consumer. The iTB showed to prospective tenants the price they could afford to pay for our property..
Thus, we were only going to have one weak point and that is that, as there had been no previous operation of this magnitude in Fuencarral, the market would have no reference to rely on, so we used the iTB as an element to make that comparison. With this, the investors first, and then the brands that studied their leases, were able to estimate a real market value, higher than that calculated by the other investors with whom we were competing, and thus win the deal.
- Second, we understood that we were in a weak stage of the Spanish economy and that, at some point, there would be a way out. What we did not know was how long it would take. We created three asset management strategies over time, depending on how the economy behaved.
We are committed to accompanying investors throughout the life of the asset in their company, until the process is completed. To this end, among other things, we developed a specific commercial concept for the property, with the management of small corners, for the less optimistic scenario that could be foreseen with respect to the speed of the economic recovery.
This gave the investors the peace of mind that they would not only have a real estate agent acting as an intermediary, but also a strategic partner, known for its ability to create valuable commercial concepts, as it had already done with Fuencarral Street.
- Third: we drew up a plan to address the weakness of the oversized real estate. There were few operators who could access 2,000 m2 and this affected the balance of supply and demand, and the negotiating position in the market.
So we decided on a marketing design, hand in hand with an implementation and licensing study, designed to accommodate three operators in the property, sharing the space, thus increasing the total demand of those interested in the property. This allowed us to reverse the position of weakness, in supply and demand, for a position of strength.
We marketed the property based on our commitment to confidentiality, which was specifically designed to prevent information leaks by anyone on the team or supplier, which worked in favor of the investor and the transaction.
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