Contracting
Contracting of building technology gives leeway necessary to cushion capital requirement peaks off-balance for realizing ambitious single properties as well as for financing national real estate portfolios.
Owlsgrove Capital GmbH has experience with cash flow based financial solutions to protect liquidity in the construction or modernization of building technology. The successful application of these models showed that there is further potential to generate liquidity tied up in properties. Contracting gives leeway necessary to cushion capital requirement peaks off-balance:
Contracting to protect liquidity
The potential contractor owns properties which are currently in development or without building technology. Alternatively, he has properties with building technology which is in need of modernization, and which should be replaced, when the economic value and technical condition presently installed are taken into consideration. The contractor develops and supplies free of charge building technology which is new or reconditioned as new and compliant with the required standards beyond economic life. Energy efficiency will be optimized in relation to existing systems and the significant structural upgrade of the property enhances its market potentials.
Contracting to generate liquidity
The potential contractee has building technology in existing properties which can be reconditioned as new as well as kept compliant to the required standards beyond its economic life at little or no cost. The contractee receives a positive purchase price according to the economic value of the systems.
In both cases the contractor becomes operator of the building technology and provides it to the contractee and his tenants at a contracting rate. The contracting rate covers all expenditures related to building technology as energy, communication and emergency services, maintenance and troubleshooting, obligatory inspections as well as insurance and repairs. The contractee, in his function as owner of the property or the portfolio, might allocate the contracting rate to his tenants to what is in each case an individually defined extent.
Contracting of building technology is available for commercial real estate portfolios as well as prominent individual properties. Along with classic office and retail properties, the application is also very attractive in the case of a multitude of specialized commercial properties as logistics. Setting up investment to building technology of a portfolio pays off economically from a volume of around EUR 20,000,000,00 (replacement value).