Asset Management
Proactively identifying and executing strategies that preserve and enhance investment value while minimising cost.
Intersel
Asset Management
Managing assets for over $1bn across the United Kingdom, France, Spain, Belgium and Lebanon since 2001.
Intersel specialises in real estate asset management. We manage significant portfolios on behalf of our clients, maximising returns through value-add programmes and hands-on management. Since 2001, we have improved the performance of hotels, office buildings, residential and mixed-use complexes, managing assets worth more than $1bn across the United Kingdom, France, Spain, Belgium and Lebanon.
$1bn+
Assets managed
2001
Since
57,399 sq m
Princesa triangle
€146m
Acquired by CPI in 2010
€170m+
Worth in 2015
25% IRR
Owner generating more than
What We Do
Our asset management practice oversees property performance with one objective: enhancing value and maximising returns across the full life cycle of an asset, from acquisition to disposal. At each stage we define the optimal plan for the asset, covering operations, budgeting, capital structure, financing and refinancing, accounting and tax. We also appoint and coordinate the other parties required, including leasing and sales agents. Our track record rests on innovative strategies executed with discipline across integrated, multi-disciplinary assets.
Maximising value from acquisition through operations to eventual sale or refinancing requires a seasoned partner able to integrate purchase, due diligence, management, leasing, construction and sale or recapitalisation. The right partner enhances an investment's value by growing revenue, reducing costs and strengthening the asset's market positioning.
We set the strategy for each property, prepare improvement plans, identify development, refurbishment and leasing opportunities, and manage banking, financing and accounting relationships. We execute through our own property manager or trusted third parties. This integrated approach is what sets our service apart.
Our Approach
Property Management
Rent and service charge collection, lease management and building maintenance, together with the coordination of specialist services such as insurance procurement.
Financial Management
All client accounting and income distribution.
Facilities Management
Selection and management of on-site staff, health and safety compliance, and procurement of security and energy services. We also advise on planned preventative maintenance to ensure accurate budgeting and cost recovery.
Case Study
Princesa Hotel, Madrid
- 1
The Challenge
Located in central Madrid, the Princesa triangle covers 57,399 sq m. CPI acquired the property in 2010 for €146m, when it was generating barely €6m of income. The hotel, operated by Husa, was unable to meet its obligations to the owner, and the office and retail space was let on short, fragmented leases. As a result, the owner was unable to service its bank debt. Intersel was appointed Asset Manager in 2011.
- 2
Our Solution
Working alongside CPI's owner, our asset management team:
- Conducted a full review of the market, tenants, operational constraints and existing financing arrangements
- Reviewed every lease and met all tenants, operators and other stakeholders
- Held detailed discussions with leading hotel operators, including Hyatt, Starwood, Marriott and Hilton
- Engaged with the banks capable of leading a refinancing, including Goldman Sachs, Merrill Lynch, Deutsche Bank, La Caixa and Santander
- Developed a new business plan to:
- Reposition the hotel as a four-star franchise, replacing the incumbent operator and reducing costs
- Refurbish and upgrade the facilities on a tightly controlled budget (interior design, MEP, fire and safety)
- Release additional space for letting
- Consolidate and restructure the leases on improved financial terms and tenures
- Let all available space with local agents, including Cushman & Wakefield and JLL
- Reduce the loan amount and renegotiate the facility agreement with the existing lender
- 3
The Result
Intersel signed a franchise agreement with Marriott, including key money, significantly improving the bottom line. Headcount was reduced from 150 to 100, and the hotel's operating units were restructured for efficiency, with selected functions outsourced. The facilities were refurbished and upgraded on a limited budget using leading Spanish contractors, and the property was fully let on long-term agreements to premier tenants including El Corte Inglés, Zara and Starbucks. By 2015, the property was valued at more than €170m, attracting approaches from multiple buyers while refinancing discussions progressed with several leading international banks. The owner was positioned to achieve an IRR in excess of 25%.
>25% IRR
Track Record
Dona Filipa Hotel, Vale de Lobo
Portugal · Portugal
San Lorenzo Golf Club, Quinta do Lago
Portugal · Portugal
Pinheiros Altos Golf Resort Quinta do Lago
Portugal · Portugal
Princesa
Madrid · Commercial and Retail
Nice La Pleine complex
Nice · Commercial and Retail
Sophia
Nice · Commercial and Retail
Aix
Lyon · Commercial and Retail
Communica
Marseille · Commercial and Retail
Plaisance
Neuilly · Commercial and Retail
Marne
Paris · Commercial and Retail