While project developers and portfolio owners need financing, institutional investors are looking for attractive investment opportunities. Engel & Völkers Capital AG brings both sides together. "Because we understand the needs of those who are looking for capital and those who want to invest," says investment expert Stephan Langkawel. Numerous promising and high-yield real estate investments have already been realised through their involvement. "Through the global Engel & Völkers network and our own established access to experienced project developers as well as portfolio owners, we ensure a continuous deal flow", says Langkawel.
Engel & Völkers Capital AG specialises in financial and investment solutions for commercial real estate. It is important to the company that the customer is at the centre of attention and that a pragmatic approach is lived: "We examine projects and if we discover a problem, we don't immediately reject it, but see ourselves as a sparring partner," Langkawel emphasises. An individual solution is then worked out together with the project developer or portfolio owner so that they can realise their project.
First project always the most difficult
The work of investment experts has a lot to do with communication. They have to understand the needs of those involved, manage expectations, choose clear words and be transparent. "Project developers and portfolio owners appreciate our years of experience and our solution-oriented approach," says Langkawel. Engel & Völkers Capital AG has already worked with many of them on several occasions. That makes sense: "Because the first project is always the most difficult. First a basis of trust has to be established and the processes have to settle in".
An important part of the cooperation with developers is the extensive testing processes that their projects have to pass through before they are financed by Engel & Völkers Capital AG. "After all, we invest the money from third parties, which is why we have a special responsibility," explains Langkawel. In the first, internal testing process, developers must submit an exposé including a calculation, they must introduce themselves and also present at this early stage what ideas they have for marketing the completed project.
"The initial assessment of the project is done by our internal team of specialists, consisting of analysts and experts," explains Langkawel. "If necessary, we are also happy to consult the Engel & Völkers network. These colleagues work on site and thus have the best insight into their regional markets".
Finding individual solutions
If the internal team of specialists has a critical comment in the review process, an individual solution is developed. An example shows what this can look like: On an area in a medium-sized city, a project developer planned to build 400 apartments. A large number of new dwellings with partly unsuitable and oversized layouts for a city with only approximately 50,000 inhabitants, read the judgement of the Engel & Völkers Capital AG after coordination with the regional experts from the network. The developer planned around and adapted its concept still better to the market. "This ultimately also improved the economic efficiency and thus increased the overall attractiveness of the project," says Langkawel looking back.
Such findings are no surprise, he says. "As a rule, project developers come to us with unusual or particularly complex projects," reports Langkawel. His claim is to find a solution for everyone. "And that works thanks to our in-depth real estate and financing expertise."
Second check with external experts
In the second review process, the project developments are examined by additional external and independent experts. "These include, for example, experts from the analysis company bulwiengesa, auditors and specialist lawyers," says Langkawel. "They turn the project inside out, and only when everyone keeps their thumbs up do we finance it."
This can sometimes happen really fast. "Ideally, it takes four weeks from project request to payment," says Langkawel. Normally it takes six or eight weeks. "But then nothing stands in the way of implementation."
A reliable partner even in difficult times
But what influence will the corona crisis have on investments and thus future project financing? Stephan Langkawel says it is still far too early to make a reliable assessment. "We have taken appropriate preventive measures and can continue to maintain our operations," he explains. "With our external partners, including project developers, appraisers and auditors, we have made arrangements for cooperation that are appropriate to the situation and are in close contact with each other".
The support of current and future projects is thus ensured. "We continue to observe the real estate market, anticipate possible implications for our projects and work with our partners on possible solutions.”
About Engel & Völkers Capital
Engel & Völkers Capital AG is an independent investment and asset manager for property investments. It implements individual investment solutions for institutional and private investors as well as tailor-made financing solutions for project developers and portfolio owners. Financing from Engel & Völkers Capital is possible at all stages of the real estate project – from securing the land to loan repayment. Engel & Völkers Capital AG now has around 20 employees at its offices in Hamburg, Berlin and Madrid. The team intends to continue to grow in 2020.
Find out more about investing in real estate projects here.
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