Asset Management
We are experts in the field of real estate asset management and currently manage significant portfolios on behalf our clients while maximizing their returns through value-added programs and superior management expertise. Since 2001, Intersel has been working on improving the performance of hotels, office buildings, residential and multi use complexes; we manage or have managed assets for over a billion USD in the United Kingdom, France, Spain, Brussels and Lebanon.
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What We Do
Our asset management arm is focused on overseeing property performance with the goal of enhancing value and maximizing return. Asset management takes place over the life cycle of a property (i.e. fromacquisition to disposition). Throughout this process we assist and work on defining the best plans for the assets, including operations, budgets, capital optimization, financing or refinancing, accounting and tax optimization. Our expert team also assists in appointing other required parties (leasing or sellingagents.). We have successfully managed integrated and multidisciplinary assets through innovative strategies and focused discipline.
If you want to maximize the value of your asset from acquisition through management operations and eventual sale or re- finance, this requires a seasoned property/asset management provider that can integrate purchase, due diligence, management, leasing, construction and sale or recapitalization. You need a provider that can enhance the investment’s value by increasing revenue, minimizing expenses, and maximizing perceived asset value by increasing revenue.
We set a strategy for the properties, prepare improvement plans, identify development angles, refurbishment and leasing opportunities, manage banking / finance relationships and accounting. We execute our strategies with our property manager or through third parties. These are the key ingredients of the unique service we are proud to offer.
Our Approach
Asset Management
Proactively identify and deliver strategies to maintain and enhance your investment value, whilst minimizing cost.
Property Management
Responsible for rent and service charge collection, lease management and building maintenance, plus the co-ordination of specialist services such as insurance procurement.
Financial Management
Responsible for all client accounting and income distribution
Facilities Management
Responsible for the selection and management of on-site staff, ensuring health and safety compliance, and the procurement of security and energy services. We also provide advice on planned, preventative maintenance activity to ensure accurate budgeting and cost recover.
Clients Results
Princesa Hotel in Madrid
The Challenge
Located in the center of Madrid, the Princesa triangle covers 57,399 sq m. The property was acquired by CPI in 2010 for 146 m Euros and was barely generating 6 m Euros of income. The hotel was managed by Husa and wasn’t able to pay its dues to the owner. The office and retail spaces had short and patchy leases. Hence, the new owner couldn’t pay its banks. Intersel was appointed as Asset Manager in 2011.
Our Solution
Our Asset Management team working along with CPI’s owner executed the following:
•Researched, studied and analyzed the market, the tenants, the existing hurdles, and the existing financing agreements.
•Reviewed the different leases and met with all the tenants and operators and other stakeholders.
•Discussed intensively with Hotel Operators: Hyatt, Starwood, Marriott and Hilton
•Met with all the banks that would do such refinancing (Goldman Sachs, Merrill Lynch, DB, Caixa,Santander…)
•Developed a new business model with a plan to:
•Target a repositioning of the hotel as a 4 Star franchise operation while removing the actual operator and cutting costs
•Refurbish and upgrade the facilities with a very limited budget (Interior design, MEP
and Fire and Safety)
•Give more space for rental
•Restructure the leases by consolidation and improving the terms: financially and tenures
•Let all available space in coordination with local agents (Cushman, JLL,..)
•And try to reduce the loan amount with the existing bank and renegotiate the loan agreement.
The Result
Signed a franchise agreement with Marriott improving the bottom line considerably with Key Money Managed to bring down the number of employees to a 100 from 150. Restructured the hotel operating units to become more efficient by outsourcing some of them. Refurbished with a limited budget and upgraded the facilities with prime Spanish contractors. And fully let the property through long term agreements and the best tenants in Spain (Corte Ingles, Zara Group, Starbucks,…). The property in 2015 is worth over a 170 m and we are approached by many buyers while we are in discussion with several prime international banks for the refinancing, the owner will be generating more that 25% IRR.
Track Record
