Legal Asset Management
We advise and represent our clients in all matters and questions regarding legal asset management, irrespective of the size of the property or the portfolio.
The purpose of asset management is to optimise the assets of the client by maintaining or increasing the value of the property or the portfolio, or by minimising risks.
Asset management aims at putting the property into a condition, which would make it acceptable for a bank to finance it. Legal asset management serves the purpose of providing a sound legal basis for potential increases in value.
This can be achieved, for instance, by the increase of the annual net cold rent, be it by the possibilities provided by statutory law, by agreeing on a stepped or indexed rent or by including so-called divergence clauses.
In addition to an increase of rent, there are also further ways to maintain or optimise the value of the property. For instance, the efficiency of the operating costs of the property can be optimised by changing the square measures. Furthermore, the value of the property can be upgraded by performing building measures.
Defects in written form of the lease agreement belong to the most common and relevant risks of the value of the property. The sustainable existence of the lease agreement is of great importance to the financing banks. For instance, lease agreements, which have been concluded with a fixed and long-term lease and suffer from a defect in written form, can be freely terminated, which may lead to considerable economic consequences. Such defects can, amongst others, be remedied by addendum agreements.
Furthermore, ongoing legal disputes and defects of the lease objects, which would give the tenant the right to reduce or prematurely terminate the, have to be eliminated.
A target-oriented legal support of the real property financing is the essential key to the success of your real property transaction. We make sure that the legal aspects of the financing are already taken into account during the due diligence and the negotiations of the property purchase and support you in the negotiation of the loan agreements and the fulfilment of the payout requirements of the loan.
In this area, we are specialised in particular in advising national and international clients in the drafting and negotiation of loan agreements, as well as the structuring of complex portfolio financings.
Our core business lies in the field of real property transactions. We support our clients in all stages of the sale and purchase of real estate. We provide comprehensive legal services to our clients, be it with respect to a single piece of real property or an entire portfolio, an existing object or a project development, a share or an asset deal.
We perform the due diligence review, draft and negotiate the agreements and support you in the financing as well as in the implementation of the transaction. We make sure that even most complex and work-intensive transactions are performed swiftly, successfully and cost-efficiently.
In particular, we advise on the following subjects:
- the sale and purchase of real properties and real property portfolios
- performance of due diligence reviews
- corporate law
- drafting and negotiating share and/or asset deals
- drafting and negotiating property development agreements
- drafting and negotiating hereditary building right agreements
- developing and negotiating of financing schemes
- the entire property development
- sale and lease-back
- drafting and negotiating rent guaranty and general lease agreements
In Germany, a total of approximately 75% of the housing stock has been built before the year 1978; therefore, there is a high number of buildings in need of redevelopment. In particular, buildings from the 1960s to the 1970s will soon pass through their first major refurbishment cycle. Buildings from pre-war time will be up for the second major refurbishment cycle.
Meanwhile, a wide range of technically mature and economically viable solutions are available for an energy-efficient and low-carbon supply of space heating, water heating and for the thermal insulation. In recent years, the number of energy-efficiency measures and thermal remediation could be substantially increased not least through comprehensive funding programs.
The reasons for energy-efficient building refurbishment are manifold. They include in particular:
- the massive reduction of primary energy demand by new building technology and the increase of the thermal coefficients
- the distinctive and sustained increase of the income value of the portfolio / single investment project by significant increase of the level of cold lease
- the increase of cash flow through a higher volume of rent at a relatively low own expenditure
- preservation of equity through the use of favorable public subsidies for the investment measure
- the creation of attractive living space by future-orientated building technology
- the preparation of privatizations or change of the fixed tenant structure in the course of the realization of potential for rental increases
- compliance with already fixed energy-efficiency requirements of the legislature and the anticipation of expected increasingly demanding requirements to property owners on the need for the implementation of energy-efficient building refurbishment
We provide our clients with a multidisciplinary and international team of experts in planning, notification and implementation of energy-efficient building refurbishment, including rental law and all aspects of private and public building law. The advice also extends to the financing of the respective energy-efficiency project and the use of funds.
For whatever reason clients decide for an energy-efficient remediation measure: they are faced with a very complex task which requires that a variety of legal, economic and technical issues have to be taken into account at all stages of planning, notification and implementation of the measures These questions, which are all important for the value of the property significantly exceed the regular requirements for an asset management within the inventory management of individual properties and housing portfolios.
The focus of our advice is the accompaniment to an economically justifiable investment associated with the claim – in interdisciplinary interaction with the economic and technical consultants – to plan a complex energy-efficiency measure and to control its implementation professionally and in close consultation with the client. The measure culminates, with respect to residential building refurbishments, in the realization of the increase of leases as previously announced in accordance with legal requirements.
As far as modernization announcements, all tenancy matters, financial matters in coordination with existing financial support, the negotiation of contracts with construction companies, the application for and the retrieval of funds, issues of the KfW-energy-efficiency recognition and many others are concerned, DSC Legal stands reliably at the side of the clients as the firm is also experienced in this part of asset management.
Seek the conversation with your contact at DSC LEGAL!