Büro Düsseldorf

The holding period for investments in real estate by fund companies, insurance companies and asset management companies can vary greatly and depends on various factors.

Market conditions have changed. Regulatory requirements and other economic factors require you to optimize your portfolio.

Then it may suitable for a disinvestment.

real estate life cycle

Here are some reasons why companies might sell properties after a certain holding period:

Return targets achieved:

If a property has delivered expected returns and met or exceeded projections, companies could decide to sell it to realize profits.

Portfolio optimization:

If a particular property no longer fits the long-term direction of the portfolio, it is advisable to sell it and reallocate the proceeds into other investments that better fit your goals.

Market cycles:

Companies may sell properties during periods of rising prices to take advantage of favorable market conditions. Likewise, they could sell properties in difficult economic times to limit losses.

Capital requirements:

Selling real estate can be a way to quickly release capital.

Changes in the market environment:

Deterioration of the neighborhood or new infrastructural developments could affect the attractiveness of a property and lead to a sale.

Regulatory or tax reasons:

Changes in regulatory requirements or tax considerations could result in companies selling real estate to comply with certain regulations or to take advantage of tax benefits.