\u201cWe have capital available.\u201d<\/p>\n\n\n\n
\u201cMaybe we should buy something.\u201d<\/p>\n\n\n\n
Or, from the other side:<\/p>\n\n\n\n
\u201cMaybe we should sell that building.\u201d<\/p>\n\n\n\n
I hear these sentences more often than you might think.<\/p>\n\n\n\n
Because behind a major real estate transaction, there doesn\u2019t necessarily have to be an investor who has spent months searching the market and knows exactly what they want to buy. <\/p>\n\n\n\n
Just as a sale doesn\u2019t necessarily begin with an owner waking up one morning having definitively decided to sell their property.<\/p>\n\n\n\n
Often, it starts with nothing more than a thought.<\/p>\n\n\n\n
An investor may have capital available without yet having a specific investment strategy.<\/p>\n\n\n\n
The first question, therefore, shouldn\u2019t be what is currently for sale<\/strong>, but what that capital is expected to do.<\/p>\n\n\n\n What return do we expect? What level of risk are we prepared to accept? Are we looking for stable cash flow or a value-add opportunity with potential for capital appreciation? What quality and duration of lease agreements do we require? What CAPEX will the asset require over the coming years?<\/p>\n\n\n\n Only then does it make sense to discuss a specific property.<\/p>\n\n\n\n It could be an occupied commercial complex, an office building, a retail property, an accommodation facility, or another income-producing asset.<\/p>\n\n\n\n Instead of building a new business from scratch, an investor can acquire an asset that is already operating and generating cash flow.<\/p>\n\n\n\n But in such an investment, they are not simply buying a building.<\/p>\n\n\n\n Above all, they are buying future cash flow and the risk associated with it.<\/strong><\/p>\n\n\n\n That is why the purchase price or stated yield alone is not enough. What matters is the quality of the tenants, the terms of the leases, operating costs, the technical condition of the property, future capital expenditure and, ultimately, the price at which that cash flow can be acquired.<\/p>\n\n\n\n At first, this may sound very vague. But that doesn\u2019t necessarily matter.<\/p>\n\n\n\n Many good transactions don\u2019t begin with a perfectly prepared investment brief. They begin with a conversation.<\/p>\n\n\n\n Only afterwards does \u201cmaybe we should buy something\u201d become a specific mandate:<\/p>\n\n\n\n We know how much capital is available. At that point, we are no longer looking for a property.<\/p>\n\n\n\n We are looking for the right transaction.<\/strong><\/p>\n\n\n\n And that is an important distinction.<\/p>\n\n\n\n That is why, when representing a buyer, I don\u2019t see my role as simply sending listings. Sourcing is only one part of the process.<\/p>\n\n\n\n First, I need to understand the client\u2019s investment rationale and decision-making criteria. Only then does it make sense to explore both the public and off-market sectors, evaluate individual opportunities and present those that genuinely meet those criteria.<\/p>\n\n\n\n On the buyer\u2019s side, I therefore work on a paid mandate and represent the client\u2019s interests throughout the entire acquisition process.<\/p>\n\n\n\n Not because the outcome must be a purchase at any cost.<\/p>\n\n\n\n Quite the opposite.<\/p>\n\n\n\n Sometimes the most valuable thing I can say is:<\/p>\n\n\n\n I wouldn\u2019t buy this.<\/strong><\/p>\n\n\n\n \u201cMaybe we should sell that building.\u201d<\/strong><\/p>\n\n\n\n The owner may have held it for ten or twenty years. The asset is operating, occupied and generating regular income. Selling it may never even have been part of the plan.<\/p>\n\n\n\n And then a question arises:<\/p>\n\n\n\n What would someone realistically pay for it today?<\/strong><\/p>\n\n\n\n That doesn\u2019t necessarily mean it should be sold.<\/p>\n\n\n\n It means it is time to look at the asset through an investor\u2019s eyes.<\/p>\n\n\n\n What normalized income does the property actually generate? What is the quality of the tenants and the remaining lease term? What investment will the property require over the coming years? What risks will a buyer price into the transaction? And at what yield will the market be prepared to value that cash flow?<\/p>\n\n\n\n Only then can an informed decision be made as to whether now is the right time to sell, whether the property should first be prepared for sale, or whether it should continue to be held.<\/p>\n\n\n\n Sometimes the analysis will lead to a sale.<\/p>\n\n\n\n At other times, the decision will be:<\/p>\n\n\n\n We\u2019re not selling today.<\/strong><\/p>\n\n\n\n That, too, can be the right investment decision.<\/p>\n\n\n\n Because the purpose of good advisory should not be to complete a transaction at any cost.<\/p>\n\n\n\n It should be to make the right decision about capital and assets.<\/strong><\/p>\n\n\n\n There is simply a thought that has been on your mind lately:<\/p>\n\n\n\n \u201cWe have capital available.\u201d<\/p>\n\n\n\n \u201cMaybe we should buy something.\u201d<\/p>\n\n\n\n \u201cMaybe we should sell that building.\u201d<\/p>\n\n\n\n Sometimes, that is exactly how a multi-million-euro transaction begins.<\/p>\n\n\n\n With a single sentence.<\/strong><\/p>\n\n\n\n And from that point on, who you choose to say it to may make all the difference.<\/p>","protected":false},"excerpt":{"rendered":" \u201eM\u00e1me vo\u013en\u00fd kapit\u00e1l.\u201c \u201eMo\u017eno by sme nie\u010do k\u00fapili.\u201c Alebo z druhej strany: \u201eMo\u017eno by sme mali t\u00fa budovu preda\u0165.\u201c Tieto vety po\u010d\u00favam \u010dastej\u0161ie, ne\u017e by sa mohlo zda\u0165. Za ve\u013ek\u00fdm realitn\u00fdm obchodom toti\u017e nemus\u00ed by\u0165 investor, ktor\u00fd u\u017e mesiace preh\u013ead\u00e1va ponuky a presne vie, \u010do chce k\u00fapi\u0165. Rovnako ako za predajom nemus\u00ed by\u0165 vlastn\u00edk, ktor\u00fd […]<\/p>\n","protected":false},"author":2,"featured_media":8737,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8736","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"\n\u201cMaybe we should buy something.\u201d<\/h3>\n\n\n\n
We know what return we expect.
We know what level of risk we are prepared to accept.
We know whether we are looking for stable income or capital appreciation.
And we know at what numbers we are prepared to act.<\/strong><\/p>\n\n\n\nAnd then there is the opposite question.<\/h3>\n\n\n\n
A major transaction, therefore, doesn\u2019t have to begin with a property listing.<\/h3>\n\n\n\n
Perhaps you are not buying anything yet. And perhaps you are not selling anything either.<\/h3>\n\n\n\n