Many markets in the Asia Pacific region are perceived to be close to the top of the cycle, making preservation and enhancement of value more important than ever. Intelligent asset and property management can add value by making a building more attractive to tenants, more cost-efficient and more marketable.

Prospects has enlisted two experts in the fields of asset and property management to offer advice to investors: Johnnie Chan, chief executive officer of Savills Services Group suggests a number of property management measures to add value, while Tisha Law, director and head of Hong Kong asset management at Pamfleet, offers advice on the asset management side.

Property management

1. Choose talent: professional and experienced property management staff who provide quality service can enhance the marketability of a building
2. Don’t sit back: continuous improvement to the building facilities can enhance asset value and rental value
3. Asset enhancement and value added services: use IT systems and other enhancements to improve the competitiveness of the building
4. Financial management: sound financial management can ensure sustainability and profitability
5. Be political: maintaining connections with policy makers and community involvement can be valuable

Asset management

1. Look at the individual asset, not just location. Value can be added to buildings in non-core districts, if repositioned with the right angle.
2. Plan ahead, yet still be flexible in reacting to market events – don’t let change be forced upon you.
3. Stay in touch with the asset by communicating constantly with your designers, leasing agents, property managers, contractors and engineers; and by spending time on site to live and breathe the asset. This is the best way to find out if you have done something right or if something needs to be fixed right away.
4. Do more than just real estate: Treat your tenants as business partners and your entrepreneurial and smaller tenants will appreciate you helping them market and grow their businesses.
5. Build and maintain good relationships with lenders, lawyers, valuers and other consultants even in the absence of a current project. You never know when their help will come in useful.

Further reading:
Savills Property Management