Asset management and growth strategy

The situation

A real estate developer and one of the largest real estate asset owners in Central America with a significant variability of returns from its widely varied assets needed to formulate a strategy to achieve future growth. The company engaged Strategy& to determine potential asset class supply and demand, define a strategy to extract value from existing assets, and design a business model and high-level organization and governance structure to support the strategy.

How we helped

The Strategy& team examined the client’s current performance and capabilities, canvassed stakeholders to gain a picture of expected returns and potential, and determined potential additional value to be captured from the asset base. We analyzed the regional real estate market, looking particularly at size and growth potential of the different asset classes; supply, demand, and price cycles; and value chain and competitors. The resultant growth strategy focused on specific asset classes and geographies, with strategies for each asset group, including development, leasing, disposing, holding, and so forth. We recommended an operating model to implement the strategy and defined the capabilities the client would require, then designed a governance and action plan.

Results

The client’s executive management and board fully endorsed our recommendations, approved the implementation plan we outlined, and lost no time in kicking off the new strategy.