Marketed well: the right sales strategy for a heterogeneous portfolio
To find the group of buyers best suited for a portfolio with a small-scale structure distributed throughout Germany and address it optimally, a major German bank evaluated different scenarios – and achieved a good result.
We developed a creative strategy for this highly diversified portfolio of slow-moving objects, enabling us to achieve a good selling price.
How do you sell a very mixed portfolio made up of 22,000 square metres of slow-moving objects distributed throughout Germany? This question was posed by a major German bank with its twelve properties, including bank branches, retail space, offices, apartments, warehouses and an archive. A large part of the buildings was empty or leased out in small units and the situation fluctuated: from part-ownership of tertiary properties to residential and office buildings in prime locations. Furthermore, the services to be provided by the bank as the owner – from accounting of service charges to maintenance costs – required great effort and expense and were thus no longer commensurate with the results. If the sale of such a heterogenous portfolio were at all possible, then the question would arise as to how this should be done? Should each property be sold individually, should the properties be bundled in sub-portfolios, or should the entire portfolio be sold? And depending on the scenario, the targeted group of investors would change; from property developers to real estate portfolio holders or owner-occupiers, whose focuses range from retail to residential and office properties.
Using tests and property model calculations to find the best scenario
To enable the bank to reach a well-informed decision, it commissioned JLL to conduct a precise market analysis by drawing up and comparing transparent figures for the different possibilities, as well as taking into account buyers who are not in the group of established institutional investors. To check the market response and run through different options, JLL began the marketing process using several channels in parallel: on the one hand, it took advantage of its national investor network; on the other hand, it also made use of its online investment platform. Based on the responses from this phase and using property model calculations, the interdisciplinary team determined the best scenario for the client and established further marketing strategies.
Streamlined process with a convincing result
The jointly developed strategy ensured a streamlined process requiring little effort and expense from the bank. And this led to a fantastic result: with the portfolio being sold in less than 12 months! The sales price was significantly above the forecast figure.