Asset management strategy – Residential building – Abu Dhabi
Project Name: Asset Management Strategy for a Residential Building Located in Saadiyat Island
Client Name: Private Company
Location: Abu Dhabi
Assets Covered: Residential
Project Size: G+5 Building located in Saadiyat Island
Project Value: Confidential
Executive Summary
The client owns a residential building located in Saadiyat Island and the asset is currently falling short of industry benchmarks from both a revenue and cost perspective. In pursuit of a solution, the client is determined to optimize this property while considering different asset management strategies.
Our Solution/Recommendations
Cavendish Maxwell was appointed to undertake asset management services, during which we conducted the following activities:
- Assessed the current revenue generated from the asset and compared the same to the appropriate benchmarks.
- Investigated the changing consumer preferences and price premiums associated with better fitted and refurbished apartments.
- Evaluated the operational cost structure of the asset and highlighted inefficiencies from a property management perspective.
- Identified the capital investment that would be required to upgrade the property and align the same with market preferences.
- Recommended the appropriate market rates and optimized cost structures for the asset and derived financial outputs based on both a sale and lease strategy perspective.
- After analysing the financial metrics for each option, we considered other factors including stakeholder motivation, opportunities, and risk before submitting our final recommendation on the most appropriate asset management strategy.
Completion Date: 2024
