The owner commissioned PPF Immobilien Management GmbH with the property management of their residential portfolio. As part of our regular management activities, we speculatively conducted a detailed analysis of the current portfolio, which determined that the fabric of the building and its outdated technology are significantly impairing its economic performance.
We subsequently performed extensive investigations into the fabric of the building and examined possible modernisation measures. From the outset, energy advisors and architects were involved in the preliminary planning and calculations, in order to gain a rough initial overview of the anticipated costs and savings at an early stage.
After the preliminary technical investigation, we compared the rental agreements and tenant structure with the current market conditions and used this to calculate the expected additional revenue. Taking account of public grants and preferential loans, we developed a complex summary showing various return on investment scenarios to present and coordinate with the owner.
Once they agreed to implement the project, we supported and assisted the owner with funding matters. As the project developed, tenants were then informed of the upcoming work during face-to-face meetings in one of the show flats and notified of the forthcoming changes to their rent. At the same time, individual arrangements were made to renovate the bathrooms, at tenants' request. 80% of which were agreed.
PPF Immobilien Management GmbH has been appointed Project Manager for the continued implementation of these extensive measures. We were therefore responsible for on-going coordination with the owner as well as everyone involved in the project. We were also responsible for concluding agreements with the respective project suppliers (architects, engineers, etc.) and were involved in awarding construction contracts.
In addition, we issued modernisation announcements, supported tenants during the building work at the property, implemented the increases following the modernisation and attended construction meetings. It was also our responsibility to monitor and adhere to the budget.
The structural modernisation measure was completed in summer 2020. With the last settlement of the IFB, all planned subsidies were paid out via KfW, IFB and BAFA. This enabled the technical and commercial project planning to be implemented successfully without increased fluctuation.