The Swiss real estate market is constantly reinventing itself. Ludovic Weiss, Head of Asset Management at Realstone SA, talks to us about his daily work.
Ludovic Weiss boasts a rich professional background. After a federal baccalaureate in the field of brokerage and condominium administration, our guest then turned to property management on behalf of private owners and large institutional portfolios. After obtaining his Federal Diploma in Property Management he joined Realstone SA; in charge of Asset Management for real estate funds listed on the SIX Swiss Exchange: Solvalor 61, Realstone Development Fund, Realstone Swiss Property and Realstone Fondation de Placement.
Interview with Ludovic Weiss, Head of Asset Management at Realstone and former property manager.
Can you introduce us to Realstone SA?
Part of Realstone Group, the company employs around sixty people spread over the sites in Lausanne, Geneva and Zurich. As of the end of 2020, our assets under management totalled some 3.3 billion francs. Our strong growth is due, in particular, to our acquisitions but also to the enhancement of our real estate portfolio through the development of new projects, additional elevations and renovations. Among our latest major achievements is the 'Les Arsenaux' district in Fribourg, located just a few steps from the train station and featuring 234 housing units and commercial areas. We are currently developing a great project in Horgen-Oberdorf (ZH), consisting of several phases, to build 450 housing units and 6,000 m2 of business area. Considering the strong competition, if we want to stand out our secret is to rely on our ingenuity, both in terms of our acquisition channels as well as the strategy and management of each of our funds.
What are your daily missions?
Our department's main mission is to ensure that both the interests of our investors and the needs of our tenants are met. Indeed, it is a highly motivating virtuous circle, in which a favourable reception on the part of our tenants leads to the success of a commercialisation and therefore, to the sustainability of a new development. The diversification of our activities allows us to be in constant contact with various players in the real estate field, both suppliers, when it comes to the maintenance of our portfolio, as well as the authorities, in relation to urban planning. Realstone Group aims to be a role model in terms of sustainable development in the field of real estate funds. Energy optimisation is an integral part of our strategy, both in the development of new projects as well as during major refitting projects. In fact, we were the first player in the real estate sector to endorse the United Nations Global Compact and its 17 sustainable development goals in March 2020. Our commitment is very tangible, thanks to our Value Contributing department, whose task is to conceive a global approach for all of our activities and implement targeted actions.
Something personal. Do you own or rent your apartment?
I own it. However, I still know the challenges experienced by tenants. Today, expectations are high. With the world around us experiencing ever-more digitalisation and the simplifications that this entails, tenants expect their daily life to be made easier, as well. Necessarily, this results in increased communication with the management. The excessive number of phone calls and emails exchanged for a simple repair that hasn't been done yet are a perfect example. Sometimes this can also result in a climate of tension.
What do you think of the relationship between owners and property managers?
The current situation tends to improve efficiency, so as to meet the expectations of owners towards their administrators. Today, various low value-added tasks must be automated or digitalised in order to be able to avoid costs which would be impossible for a property manager to bear. Agents' margins have been sorely tested. Therefore, obviously some level of automation to carry out certain tasks is necessary and Tayo fits perfectly into these standardisation dynamics.
Are you saying that the owner-administrator relationship is not always easy?
Overall, I think that our collaboration is good, because we mainly deal with seasoned professionals. However, the role of the agent has evolved and has become much more complex. Thus, an owner now expects their property managers to be not only well informed on the situation of local markets but also prepared in relation to the constant developments in terms of lease or construction law, taxation, etc. Sustainable development and energy issues are one additional dimension to be integrated into management in order to be able to anticipate and advise owners. Perhaps you will agree with me that there is not much time left to devote to the administrative back office and that the automation of these process has become crucial.
How do you see the future of a company like the one you work for?
The appetite for yield from 'institutional' investors, such as insurance and pension funds, continues to grow, adding pressure on the real estate market and making the life of private individuals wanting to acquire a yield property much more complicated. Based on forecasts, this should not change in the medium term. An additional factor to consider is also the densification of urban areas, in particular in connection with the application of the Spatial Planning Act. Among the consequences of this, the more peripheral regions may experience a drop in demand, with the risk of losing small businesses and services to the population in some villages. However, things could change following new habits introduced by the Covid-19 situation. Indeed, the democratisation of teleworking and the importance felt by families to have access to the outdoors or to live in a natural environment may once again push some tenants to find accommodation outside the large urban centres.
Realstone is able to stand out thanks to the ingenuity of its employees. This involves the development of existing property portfolios, the acquisition, through our privileged contacts, of further housing and customised products in order to allow for the highest level of optimisation.