REAX Advisory GmbH was commissioned by PSD Bank Rhein-Ruhr eG to facilitate and execute an asset manager switch for an individual fund investing in residential real estate, the bank being the fund’s sole investor. Within the scope of its mandate, REAX Advisory GmbH invited four potentially eligible asset managers to participate in the screening process. The screening reduced the number of candidates to two, with a company owned by PSD Bank Rhein-Ruhr eG eventually recommended as the new asset manager.
Annika Dylong, Managing Director of REAX Advisory, elaborated: “The process used for the selection decision was our own asset manager evaluation model, which focuses especially on the operational quality and competence of a given asset manager. In today’s market environment, the reliability of business partners and the collaboration with them are of enormous significance. Our evaluation process is fine-tuned to the case at hand, and takes the specific requirements of the respective client into account. Of particular importance in the case of PSD Bank was not least the experience with energy refurbishments because it will be very much in demand during the future management of this portfolio.”
Aspects scrutinised during the review and evaluation included, for instance, the areas of finance and funds, as well as competence in the areas of housing, the organisational structure and workflow of asset management, and the approach to be used for taking over the portfolio. The information needed for the evaluation within the framework of the model was obtained by asking more than 70 questions; in addition, 15 different documents were studied and rated for each of the potentially eligible asset managers.
Kai Nelson Dreisigacker, Managing Director of REAX Advisory, added: “An aspect of particular importance for the client was the hiring of a new asset manager on short notice. Ultimately, it took us just three weeks to complete the entire process, including the call for tenders.”
Dr. Stephan Schmitz, Member of the Management Board of PSD Bank Rhein-Ruhr eG, said: “What particularly impressed us about REAX Advisory was the professional nature of the tender documents and the high consulting competence. Especially the long-term experience of the persons in charge was a key argument in the decision to grant the mandate. The implementation by REAX Advisory fully met our expectations, and all the more so when you consider how much we were pressed for time.”
