Task
In preparation for a relocation of their site in Cologne, the EASA (European Aviation Safety Agency) commissioned the BÜRO DR. VOGEL GMBH to carry out a location and property comparison and to create a profitability analysis for selected pieces of real estate.
The central question was to compare the three available pieces of real estate in terms of their efficiency and refinancing. Furthermore, it was to be checked and compared for all three pieces of real estate whether purchasing, leasing or hired purchasing would represent the most economical solution for the scheduled period of 15 years.
Approach
The solution to the task involved a temporal and interest-rate-related presentation of all the costs that would arise during the 15-year usage from the respective offerings. First of all, the annual costs for the project according to their due dates were displayed in a cash flow model. This was followed by an explanation of the applied classification and methodology with the conversion towards a reliable and uniform comparative figure.
By doing this, it was now possible to compare all the expenses of the various real estate offerings. Acquisition models could now by compared by our public sector client using an unilateral comparative figure.
The detailed calculation model was followed by a comprehensive and systematic comparison of the results of the eight comparative models. In the sensitivity analysis of the calculation model, parameters were considered that are subject to future market developments. Depreciation or loss in value of the real estate / residual value in the purchase model, value assurance and related development of rents and interest rates were key factors in providing a clear, overall picture for the best offering.
Result / Added Value
The added value of the work of the BÜRO DR.VOGEL GMBH for one of the most important investment decisions of the European Aviation Authority (EASA) consisted of a compliant and verifiable analysis, and a transparent economic decision basis derived from it.
Project Volume
Approx. €120 million
