Property-specific risks are linked to existing properties, whereby a building‘s location generally represents the main risk as far as property investments are concerned. Its location determines how well and sustainably the building can be let or sold. CA Immo International constantly examines external location analyses and subjects every potential site to a standardised checking procedure.
The vacancy risk derives from space that is not let, is not generating rental income, and capable of incurring vacancy costs and, consequently, a decrease in value. To reduce this risk, CA Immo International carries out regular, systematic quality checks on its properties, which include repairing defects as well as measures to reduce running costs. The careful selection and examination of tenants‘ creditworthiness additionally helps to reduce the risk of non-payment. In order to rent out vacant space quickly, CA Immo International works with reputable real estate agents. The profit earned from each property is registered monthly and compared with the budgeted figures.
Construction risk or project development/execution risk comprises, among other things, imponderables such as delays in the property use approval and planning permission processes, noncompliance with estimated costs or time limits in the completion of a project, or construction defects. These risks are inherent in the project development business and cannot be wholly eliminated, even by meticulous planning. CA Immo International has experience of project development in its target markets. In addition, the risk is diminished by co-operating with experiencedlocal project partners in the individual countries. A strict reporting system ensures that costs and time limits are accurately monitored.
CA Immo International decreases the reselling risk by selecting locations carefully, performing ongoing quality analyses, observing the market closely and, not least, by critically assessing the market value of each property as stated in the balance sheet.