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