| Contractor |
PPS & Partner |
| Collision of interests between the contractor
and the party buying the apartment
• Contractor wants high proceeds at minimum effort
• Buyer wants a low price with the best
features |
Alignment of interests between the founders
and the investors
• Founders compensated with participation in the property
(10%)
• Founders have a capital share |
| |
|
| Maximizing the hidden proceeds |
Cost and payment transparency |
| |
|
High "system costs":
Notary, partitioning the apartment, bank guaranties, prospectus,
sales, sales risk |
Low "system costs":
An entire property is purchased, developed, and maintained |
| |
|
Higher purchasing costs
• Due to concentrating on properties with "historical
landmark depreciation"
• High costs for cosmetic measures that rapidly decline
• Redevelopment prices under time pressure and "prospectus
pressure" |
Best purchasing terms for the structure of
older buildings
• Not restricted to properties with "historical landmark
depreciation"
• Low expenses for cosmetic features
• Price advantage due to cooperating with companies over
many years |
| |
|
Detrimental tax conditions
such as offset prohibition on losses (Sec. 2b of the German
Income Tax Act) for funds open to the general publicsuch as
offset prohibition on losses (Sec. 2b of the German Income Tax
Act) for funds open to the general public |
No restriction on offsetting losses
because of individual redevelopment concepts for each acquisition |
