Strategy
The second pillar of the business model of the CRE Group is asset management. Together with CRE Resolution, we were one of the first providers of transaction-based asset management services in Germany. In the meantime, we have become one of the leading providers in this high-potential segment of the market. With its broad-based array of services, CRE manages the real estate investments of its clients and investment partners in all phases of the investment process, from the initial purchase to transaction management, investment management and project management, and finally to the sale process.
The central purpose of our Asset Management unit is to represent the interests of the property owners. In this capacity, the Asset Management unit coordinates and monitors the work of administrators, facility managers, project developers and brokers, in the interests of our clients. The highly efficient asset management we provide can lead to above-average investment returns. The regional expertise and extensive networks, developed over many years, of the asset managers of the CRE Group in the respective locations ensures that only the best service providers, in terms of the cost-benefit ratio offered, are chosen for the clients’ projects. Thanks to our close market ties, moreover, we have direct access to attractive new acquisition opportunities. CRE’s Asset Management unit services both the company’s own property holdings and the portfolios of individual and institutional investors. Thus, the revenue sources are diversified. The compensation payable to the company is very much performance-oriented. In addition to a variable purchasing fee and a base fee that is normally determined on the basis of the rental income, the CRE Group always receives a percentage of the profits generated on the resale of the properties in question. Thus, our primary interest is the success of our clients.
The successful establishment of the Asset Management unit was a key step in the strategic reorientation of CRE AG as an integrated real estate investment and services company. By means of the majority interests held in CRE Resolution and CRE Accentro, the company has succeeded in mobilizing the two most important success factors in this business: in-depth management expertise and regional presence.
