Real Estate Transaction – 2 Business Case Analyses

Task

The BÜRO DR. VOGEL GMBH supported the Berliner Verkehrsbetriebe (BVG) in the purchase of a large plot of land for long-term operational purposes. This also included the assessment of the value of the property, taking into account the benefits for the company. The operational use as well as the valuation from the perspective of third parties were to be taken into account.

Approach

The BVG had already commissioned an expert opinion on the property in question. The expert opinion was analyzed by the BÜRO DR. VOGEL GMBH and the assumptions were evaluated. The assumptions of the previously prepared expert opinion were compared with the company's own market assessment. For this purpose, an own valuation was carried out and the land value was determined for two alternative business cases.

The BÜRO DR. VOGEL GMBH also examined the market for comparable potential properties in Berlin for the use envisaged by the BVG. These results enabled a realistic statement on how the market offer for such properties is to be valued and which potentials arise opportunistically for the BVG from the purchase.

Result / Added value

The analysis of the market offer showed that the present land option represented a highly reasonable basis for the BVG for the intended operational uses. The BVG received a clear recommendation for the purchase of the land. The risk of a possibly too high purchase price could be excluded.

A market value was determined for the two business cases to be examined, which, in addition to the real estate-related issues, also appropriately evaluated and took into account the internal value creation. Here, both operational use and third-party use were examined. This provided the BVG with a concrete decision-making basis for the purchase of the property depending on the respective planned operational use options.

Project volume

On request