Thorough preparation prior to investment sets the correct path.
Throughout this preparatory phase, a constant feedback cycle ensures that the plan is conform to initial investment thesis.
We have experience across all real estate asset classes. Our focus is development of residential and mixed use properties.
Our extensive network has been built up over 14 years. We have close ties to key market players and institutional investors:
We command the inside track on off-market transactions…
Magma Rock undertakes the entire DD process, coordinating with sellers, their management providers and our own external suppliers. We focus on the “red flags” – the material risks that jeopardise the validity of the investment. This ensures that time and resources are directed effectively. This accelerated process is an essential advantage in the currently aggressive market.
Our services cover three fields:
We can quickly and efficiently assess the structural and technical condition of the properties. This covers not just the overall condition, but frames the results in the context of a renovation strategy. Client specific reporting and formats are adopted into our own systems, to minimise resources translating the technical results into client’s own reporting requirements.
Assessing and evaluating the commercial and economic aspects of the property:
Integration of the various due diligence reports into a comprehensive and viable investment case.
A pragmatic and quantifiable approach to risks increases transparency. The SWOT analysis encapsulates all aspects of the property, enabling quick decision-making.
We also undertake the final stages of the acquisition process:
Magma Rock’s Fund Management services include:
Our portfolio management service creates a picture of the asset base and monitors its development over time.
Portfolio management is the art of continually balancing the portfolio to ensure that it delivers the investment goals.
Asset Management functions on two levels:
Unit / Apartment Level
Renovating or refurbishing units to ensure a swift letting for a good rent. The standard of renovation can be pre-determined in consultation with the client, taking into account the following factors:
A complete project development:
The decision to sell a property should start long before the call to the broker.
Ideally, the asset being sold has enhausted its potential in its current life cycle and can generate maximum returns on exit. Before we recommend the disposal of any asset we perform an analysis of the current performance and outstanding opportunities and risks.
We formulate a plan to maximize the value and potential sales price, and implement the required measures.
Three steps are undertaken before any marketing starts:
1. Data Collection
2. Identify Target Buyers
3. Preparation of Marketing Material
Magma Rock offers a customised marketing process based on client preferences. There are two overarching approaches, which can be combined to create the most effective sales process for the asset:
1. Off Market
Often the preferred method for sellers seeking discretion, transactions are introduced directly to a selected group of potential purchasers. This avoids spreading the portfolio widely across the market to many unsuitable buyers. This targeted approach increases the portfolio’s attractiveness to more serious investors. Amongst investors, off-market transactions have a number of empirically proven benefits:
2. Open Channel
Transactions are marketed through open channels (e.g. online platforms) to reach a wide number of possible buyers.
This ensures the widest reach and can unlock potential buyers, who are otherwise overseen during off-market transactions.
This can lead to higher prices, but risks excluding some of the more serious investors.
The final stage of the sales process consists of 3 concessive phases:
These last phases of any transaction are the most decisive. Many years experience in closing transactions enables us to calmly find common ground to satisfy the needs of all parties.