Business Model
>> Focus on Office Builidings
> Attractive locations Our properties are located in vibrant inner-city business districts
with good infrastructure. This is where people will continue to work and conduct business
for generations. We invest in high-quality buildings in good locations which are suitable for
numerous users and thus have improved prospects for immediate follow-on leases. The results
speak for themselves: Feri EuroRating Services AG has appraised our investment properties
within the context of its annual portfolio rating, again awarding our portfolio an "A" rating
("very good").
> Stable cash flow and potential for added value We acquire properties that are
fully let, well equipped and generate a stable cash flow ("Core properties") as well as vacant
properties or properties that require upgrading provided they possess tangible added value
potential ("Value Added properties"). For example, added value is achieved by eliminating
vacancies, changing the leasing concept, changing the use, building extensions or carrying out
architectural or technical upgrades including complete revitalization.
> Multi-tenant strategy We pursue a multi-tenant strategy, meaning that our business
model is primarily focused on office properties with several tenants rather than with single
tenants. This strategy reduces the risk of loss of rental revenues and the probability that large
rental spaces become available and need to be let at the same time.
> Attractive rates of return involving moderate risk Our risk policy reflects our goal of
increasing the value of the Company while keeping risks at a moderate level and generating an
attractive rate of return for our shareholders. The continuous stream of rental payments from
our core properties is the foundation for financing our value added projects.
> Buy & sell strategy Once our properties have been modernized or fully occupied, we
sell a limited number of them in order to realize their gains in valuation.
