Market and liquidation risk

From a financing point of view, the risk to property investment markets remains considerable as more and more banks become ever more reluctant to finance large-scale investment in real estate. A deceleration in the transaction rate in 2012, which cannot therefore be ruled out, could impact negatively on CA Immo’s sales targets for the year. There is also a danger that owing to rising yields, CA Immo will either be unable to sell properties, or only able to sell them at a discount. This could adversely affect the company’s liquidity. To prevent such risks arising, CA Immo performs its own exhaustive market analyses prior to any investment decision and as a regular part of portfolio management; the company also maintains constant contact with leading experts in the sector. To minimise regional risks, the ideal resale times for the largest properties in the portfolio are considered as part of regular discussions concerning location quality, property quality, market changes and emerging trends. Through this approach, key early indicators of market risk are systematically applied to evaluations of investment and project plans, and thus to medium-term liquidity and corporate planning.

<< back