„Systematization of Housing Privatization in Germany of Portfolios with more than 50,000 Units - Development of a Privatization-Analysis-Model (PAM)“

Abstract

Abstract Reddehase, Rainer: Systematization of housing privatisation of portfolios with more than 50,000 units in Germany – Development of a Privatisation-Analysis-Model - [Disserta-tion] - Technical University of Ostrava - Faculty of Economics - Supervisor: Prof. Ing. Jaromír Gottvald, CSc. The aim of the thesis is to examine the mass valuations of large housing stock, taking into account housing privatisation measurements at a later stage (2nd order privatisation / housing privatisation). Starting point of the analysis is data on case studies of the sales processes of the large housing companies (1st order privatisations). The data was collected in Germany between 2000 and 2008. The housing companies examined held between 50,000 and 140,000 housing units. In the course of Due Diligence processes more than half a million housing units were analysed. Data from the sales processes (bidding procedures) was collected and evaluated and from the observations and conclusions best practice were derived. The process presented here, is de-scribed as the privatisation analysis model PAM. The result of the investigation is a PAM report with a results database connected to it. Development of probabilistic pricing model for residential real estate portfolios: The underlying stochastic model of real estate portfolios transactions is based on the calculation of price indi-cations for immotops with the beta distribution. Bases for the property valuations are the standardised methods: comparative approach, cost method and income approach. Within the scope of the investigations, the focus was on the micro and macro markets, respective building types and the occupants. Here it was differentiated be-tween desktop valuations on the one hand and drive-by valuations on the other hand. Partly also interviews with tenants were conducted. In addition, the added value generated is examined scientifically as well as in proactive respect. Furthermore, the substantiation and methodology of the analysis is underpinned and described. The central questions resulting from the analysis were formulated in hypotheses and theses. The actual investigation includes a practical part i.e. the privatisation analysis model as well as a theoretical part comprising the presentation of property valuations and the determination of the Topic price. As a result, the dynamic effects of real estate valuation lead to a cost-effective solution for investors. 1,000, 10,000 or 100,000 housing units can be valued in a relatively short time span. Already during the purchase inspection (1st order privatisation), the potential for tenant privat-isation (2nd order privatisation) is assessed more closely.