Forward Deals for the Global Sales of Residential Developments

We secure family offices, property companies and institutional investors for your residential real estate developments throughout Germany.

Rental income of EUR 11.00/sqm is a conservative figure. In the immediate neighborhood the very same developers are making EUR 12.00/sqm and more. But the profits from selling individual apartments are only realized when the final unit is sold. The risk of unsold, or slow-selling, units is eliminated via a global sale. In this example, marketing costs are set at 5%. In reality, they are often significantly higher. In today’s market, there are plenty of similar cases, but of course, there are also a large number of cases in which the best prices can be achieved via individual sales. If you’d like to find out which approach best suits your specific project, we can make a realistic comparative calculation.

As rent-to-price ratios for global sales have surged over the last few years, it is now possible to achieve prices that are similar to individual sales – on a vastly reduced timescale and at much lower risk. The following example is of a newbuild project in Potsdam from the second quarter of 2016.

 Six reasons why forward deals are more attractive than ever for developers  

  1. The gap between the achievable square meter price from individual sales and the prices that can be achieved via the global sale of residential complexes has narrowed continuously over the last few years.
  2. Family offices and institutional investors are investing more than ever before in residential real estate – but there is a shortage of attractive residential investment properties. This means they are willing to pay extremely attractive prices when they do buy.
  3. Rent-to-price ratios are often higher for existing real estate than for new residential developments.
  4. It is more important than ever to achieve a timely sale. After all, the risk of market shifts in response to external shocks, rapid increases in construction permits and political instability have increased significantly.
  5. Project developers can substantially increase their volumes and minimize risks by adding a global sales strategy to their individual sales approach.
  6. No risk of unsold or slow-selling units.

Six reasons why SCHICK INSTITUTIONAL is the ideal partner for your forward deals

  1.  We guarantee a silent placement. We do not advertise and we do not use online marketing.
  2. We do not use mail shots or mass-market brochures; we engage with a small and select group of investors.
  3. Proven “silent listing” approach: Give us three months to position your project with one of our select investors before you launch your individual sales campaign.
  4. Focus on residential real estate: We have specialized in multifamily complexes for 25 years.
  5. Unparalleled links to family offices, property companies and institutional investors via the “MICHAEL SCHICK IMMOBILIEN GmbH & Co. KG” and “Dr. Rainer Zitelmann” networks.
  6. We only ever represent one side in any transaction, so there are never any conflicts of interest.


We don’t need to spend time looking for your buyers – we already know them.
You can focus on your core business – developing attractive residential real estate. And rely on our core competence – the speedy and silent placement of your project with exactly the right investor.

  1. “Global sales aren’t really relevant to us. Prices are rising faster than rents.”
    This is the case in a number of markets. But tumbling yields mean that the same kind of high prices can be achieved as with individual sales – just much more quickly.

  2. “The yield generated by our rental apartments is too low for a global sale.”
    Yield compression in the multifamily real estate market gives you the chance to position even low-return complexes for sale. Family offices, in particular, are often willing to accept lower net initial yields as they prioritize quality and location. In today’s market, they are more focussed on the kind of value retention and value-add potentials offered by well-situated residential real estate projects.

  3.  “Our current development is in the suburbs. We’re only really targeting owner-occupiers.”
    The scarcity of attractive developments in central districts has led a growing number of investors to consider more outlying districts. With our wealth of experience, we know exactly the right investor for your specific project.

  4.  “Our project is probably too small.”
    Above all, family offices value smaller-scale projects for their investments, as an element of their diversification strategies.


  5. “We’ve already launched our sales campaign...”
    Selling entire buildings within large-scale residential developments is a good way to sell large numbers of apartments at a single stroke. Commercial investors often buy individual apartment buildings or sections of larger residential developments.

  6.  “We don’t currently have any projects that would be suitable.”
    It is still definitely worth speaking with us. We are often able to help developers to identify the best locations or products for their next developments, because we know where the greatest demand is.

  7. “We already know most of the investors who are interested in global acquisitions.”
    We’d be surprised if you didn’t. But it’s not just a question of knowing someone, it’s about making the right approach to the investor who is currently willing to pay the highest price. Our ongoing discussions with all of the most relevant investors means we can give you the best overview.

  8. “If we sell our entire project now, we won’t benefit from any future price increases.”
    If you are certain that prices will keep on rising at the same pace as they have done over the last few years, then you really should stay away from global sales.

Jürgen Michael Schick

Managing Director MICHAEL SCHICK IMMOBILIEN GmbH & Co. KG

 Jürgen Michael Schick been active in the real estate industry since 1990. In the early 1990s, he founded the Berlin-based real estate investment brokerage, MICHAEL SCHICK IMMOBILIEN GmbH & Co. KG. The Real Estate Economist (ebs) has been a Professional Member of the Royal Institution of Chartered Surveyors (MRICS) since 2005, thereby certified as an international chartered surveyor.

His was the first real estate brokerage in Germany to gain accreditation as a real estate investment broker in accordance with the new pan-European DIN EN 15733 standard for investment real estate in 2010.

Schick has long been regarded as one of the German residential market’s leading experts and is a sought-after guest for television, radio and press interviews. He also appears regularly as a speaker at major conferences and industry events. From 2002, Schick was the IVD real estate federation’s Vice President and official spokesperson. Since June 2015 he has served as President of the IVD. In absolute terms, the federation’s approximately 6,000 member companies make it the largest in the German real estate industry.  

 

Dr. Rainer Zitelmann

Head of Institutional Investments MICHAEL SCHICK IMMOBILIEN GmbH & Co. KG

 Dr. Rainer Zitelmann is one of the foremost real estate experts in Germany. In 2000, he founded Dr. ZitelmannPB. GmbH. For 16 years the company has been the leading consultancy company for the positioning and communication of real estate and fund companies. The company’s clients include renowned real estate developers, funds and institutional investors. Parallel to its activities as a communication consultancy, the company is also active in the field of “relationship management”. This involved overseeing M&A transactions within the real estate sector and arranging forward deals for residential developments. In 2016, he sold the company during the course of an MBO.

Dr. Zitelmann’s network within the industry is unrivaled: Since 1998, he has organized 320 real estate roundtable events under the banner “Berliner Immobilienrunde”, at which institutional investors, family offices and foundations regularly gave presentations. At these events, the roster of speakers included more than 1,000 of the German real estate industry’s leading figures, and many tens of thousands of industry figures have been in attendance.

Dr. Zitelmann has established close personal relationships with notable high-net-worth individuals and family offices in Germany, as well with key decision makers at insurance companies, pension funds and other institutional investors.

Dr. Zitelmann is not only the author of numerous books and essays on real estate topics, his own investment success also clearly demonstrates his outstanding feel for the market.

In September 2016, Dr. Zitelmann became “Head of Institutional Investments” with MICHAEL SCHICK IMMOBILIEN GmbH & Co. KG.