Hospitality Experience
Mixed-Use Portfolio Valuation for B&L Gruppe
During the valuation process we had to assess the hotel, car park and serviced apartment markets in Budapest in order to comment the business plans received. Based on the market assessment, we have established the applicable capitalization rates and discount factors to arrive to the value of each asset within the portfolio.
Project Scope
Our firm was engaged by B&L Gruppe, a leading German real estate developer, to provide a detailed valuation of their mixed-use portfolio, which consisted of a diverse range of properties including office spaces, residential units, retail outlets, and hospitality assets across several key metropolitan locations in Germany. The primary goal was to determine the current market value of the portfolio to support strategic decision-making and future investment opportunities.
The valuation process began with an in-depth analysis of each asset within the portfolio. This included on-site inspections to assess the condition of the properties, a review of maintenance records, and an evaluation of any potential capital expenditures required to maintain or enhance the properties‘ value. We also examined the tenant profiles, occupancy rates, and lease agreements to understand the financial performance and sustainability of the income streams.
A crucial aspect of our work involved market analysis, where we researched local real estate trends, including recent comparable sales, rental rates, and supply and demand dynamics. This enabled us to position each asset accurately within its respective market. For income-producing properties, we used the income capitalisation approach, applying market-derived capitalisation rates to estimate value. For properties with significant development potential, the residual land value method was employed to account for the highest and best use scenarios.
Throughout the project, we collaborated closely with B&L Gruppe’s management to ensure our approach aligned with their strategic objectives. The final valuation report provided a comprehensive assessment of each asset’s value, offering B&L Gruppe detailed insights that enabled them to make informed decisions on asset management, potential divestments, and future investments in the portfolio.
