Ground rent opens up a range of cash-generating possibilities in every phase of the real estate cycle.
Through cooperations, equity stakes and direct investment we always pursue tailored solutions along the entire value creation of a property – focused exclusively on our customers’ needs. For us it goes without saying that our clients are our partners.
Application options:
The ground rent model gives real estate owners access to a proven means of generating liquidity for development projects and investment in existing properties, opening up profitable usage alternatives with unexpected market potential.
Ground rent leasing further allows cities and municipalities to meet urban planning requirements while creating much-needed housing and generating substantial revenues for the public coffers through ground rent income and potential sale of the properties.
- Solution concepts for property developers and private and public investors in ground rent development projects.
- Freeing up capital
- Expanded range of financing options
- Reduced total investment cost by taking the land portion out of the equation, thus reducing the amount of equity required
- Increased market potential by taking the land portion out of the equation, reducing the sale price
- Increased depreciation basis
- Maintaining control over buildings, meeting urban planning requirements
- Solution concepts for portfolio holders and investors on investing in and disposing of ground rent housing portfolios
- Maintaining control over buildings, meeting urban planning requirements
- Liquidity for renovation and revitalisation, optimising the sale process in certain cases
- Means for achieving urban development in a contemporary and socially responsible manner, enhancing location attractiveness and reducing vacancy
- Expanded range of options for necessary refinancing and rollover financing
- Socially compatible privatisation provides an alternative utilisation option for existing properties
- New “product” with the unique selling point of cost leadership
- Opening up a market of appr. 9 million potential customers
- Rapid cash backflow
- Accelerated sales
- Socially compatible privatisation feasible within a range of different partnership options
- Consortium: In a buying consortium, Vivacon AG acquires the ground rent land while the consortium partner as ground rent tenant acquires the buildings which can subsequently be leased for profit. Optionally, a consortium partner can later privatise and capture the proceeds.
- Existing properties: The portfolio holder sells the ground rent land to Vivacon AG and conducts privatisation under the ground rent arrangement, capturing the corresponding income. Alternatively we can conduct privatisation for a selling commission.
