Support in the evaluation of investment profitability

A knowledge-based 3D building model is studied to assist the decision making process regarding advantages and disadvantages of a real estate specific investment calculation.  The building model enables the technical analysis of the building condition and the development of maintenance strategies. The knowledge comprises models of various maintenances schemes as well as the evaluation of their effects on the remaining utilization period, total cost of ownership and the market value.

A knowledge-based 3D building model can promote the cooperation among all parties in the AEC industry as well as a more fierce competition, particularly in DBFO projects. It can potentially serve the advancement of all phases from project development to facility management due to, among others, more reliable cost estimates, closing deadlines and supply chain management as well as the reduction of conflicts caused by project modifications or deviations in interim and final payment statements.

According to Moody’s, the criteria in evaluating a facility product are management quality, investment quality and performance tests. Advantages and disadvantages of this procedure are identified, the efficiency is critically analyzed and potential advantages of implementing Benchmarking are studied.

Appraisers face higher requirements due to a rapid increase in international real estate transactions and investments. The effects of the profound change of the German real estate economy are being studied. The market value according to German regulations (WertV) is being compared to international procedures such as the International Valuation Standards (IVS), The European Group of Valuers Associations (TEGoVA), as well as the Appraisal and Valuation Manual (Red Book) of the Royal Institution of Chartered Surveyors (RICS).

REIT’s have fundamental differences to German real estate corporations in its general regulations, systematics as well as valuation procedures. For this purpose, the acceptance, functionalities as well as advantages and disadvantages of REIT’s in Germany are being studied. The different investment philosophies, strategies, perceptions of risks, mentalities, in short, the differences in management of the investors are identified.

Currently, available GIS-applications are primarily being used to analyze locations. However, they could also be used to calculate project profitability as well as to analyze risk. For this, relevant indicators of each calculation are specified, which are then classified into location-dependent and independent factors. In addition, compatibility issues of different applications are studied.

The space affected by incident sunlight is highly related to determine the usable renting area. Artificial light is being used to simulate the effect of daylight on humans, particularly in interior spaces, in order to increase the comfort level. Genetic algorithms are implemented to optimize the search process for criteria such as coloring of roof light and light distribution as well as color, form, reflection, absorption and refraction properties of surface materials.

The concept of the project is to develop a new city in a city on approx. 20,000,000 m2. In order to secure a self-sustained city environment, the finance center incorporates not only office buildings, congress centers and hotels, but also residential buildings, retail areas, shopping malls, a sport and entertainment center, catering as well as leisure and recreation sites. A state of the art infrastructure features an innovative parking-lot and a traffic system. A complete feasibility study is being conducted.