Security
COSTS SECURITY
In all divisions, contracts are exclusively made with general contractors
for many years. For individual orders, contracts are generally made with
fixed prices. Risks of cost overruns in the construction of buildings are
contractually limited and transferred to the contractor. We use customised
software in a systematic cost accounting system of the company and the
individual project and property companies for early identification of
business risks.
LIQUIDITY SECURITY
Credit risks are limited by strict control and early control and delayed
payments and potential bad debts are monitored regularly by our
software-based finance and accounting unit.
INTEREST SECURITY
The company pursues a safety-oriented funding strategy, in which generally
only medium-term interest rate agreements are made on project basis. The
average maturity of fixed interest rates of loans is three years.
PROJECT SECURITY
The developments of the company take place nationally only in urban centres
of major cities. Individual projects, which could threaten the company due
to their overall volume, are avoided. The focus on our two business areas -
residential and commercial properties - with new developments includes
balanced risks. To monitor individual risks the company management works
with detailed software-based project planning, such as project status,
project network, cost and revenue calculation for date-related evaluations
and analyses.
BUILDING SECURITY
For all building risks, a comprehensive insurance coverage is purchased
through a specialised insurance broker. For current technical control and
surveillance of buildings, there are contractual agreements with specialised
companies.
RENTAL SECURITY
In developments depending on project and property type, within the scope of
our activities, long-term leases are sought. Renting of possibly free areas
is done strategically through our branch offices, with external partners.
Construction may only be commenced if the pre-defined pre-letting is secured
with creditworthy tenants.
SALE SECURITY
To limit marketing risks in the project calculations of the company, the
sale prices are determined particularly conservatively, irrespective of
whether the property is an existing or newly developed one.