The Trading Concept
The Trading Concept: From standstill to action
Our successful collaboration with the Risk Management departments of numerous banks over many years means that we are repeatedly entrusted with properties that are either problematic themselves (non-performing loans) or owners who have acute liquidity problems and need our help with raising new capital in the short term. In both cases, the purchase price is often relatively low, contrasted with a higher sale value as a result of suitable measures being taken.
These measures are Brüggemann GmbH’s speciality. They range from developing a new basis of trust between everyone involved through to Interim Management to increasing the earnings from NPLs and finding investors. We have numerous international contacts for this, who together form a sort of “Investment Club”. It is open to new members at all times, be they private individuals, family offices or institutional investors. Every member from this pool is free to decide which of the offered properties they wish to invest in.
Our specialists assess all available properties extremely carefully with regard to their status and their possible prospects and make a pre-selection. The property data collected is available to all members. The final selection is made by an Investment Board made up of auditors, tax advisers, valuers and representatives of the investors. Once it has been established which investors wish to invest in which properties, a property holding company is founded for each of the properties. This is followed by the phase of increasing performance. This should generally be completed after just 12 to 18 months. As soon as an attractive exit option presents itself, the property is sold.
With this model, Brüggemann GmbH offers investors the opportunity to acquire property with potential for capital appreciation off market and thus discreetly, which is often beneficial given the often sensitive nature of the circumstances surrounding such opportunity properties. Furthermore, the commitments are for a clearly defined period of time and offer prospects of profit in the short term.
You will find a graphical depiction of the Trading Concept here as a PDF download.