Brand Value of Real Estate

Transcription

1 Conference: Branded Spaces Karlsruhe, Germany Sep- 15 Brand Value of Real Estate Prof. Dr. Bernd Ankenbrand Sven Mussler Timo Mussler

2 We Live In A Brand World

3 How Powerful Brands Create Value

4 Impact Of Brands On Business Success Q: What impact do brands have on the success of your business? (Originalfrage: Welchen Einfluss haben Marken (inkl. Markenlizenzen) auf den Erfolg Ihres Unternehmens?) Scale: 1 = no impact, 7 = highest impact Source: PricewaterhouseCoopers/GfK/Sattler/Markenverband (2005) Praxis von Markenbewertung und Markenmanagement in deutschen Unternehmen - Neue Befragung 2005

5 Example: Brands In Dollars And Cent Interbrand 66 bn USD Millward Brown 58 bn USD Brand Finance 45 bn USD Source: W&V (2008) Markenwerte mit der Wünschelrute, Nr. 43, 2008

6 Why Valuing Brands? Transfer Prices Purchase Price Allocation Impairment Test Rating For Balance Sheets Royalty Rates For Contracts Licensing Sales and Lease Back Property Rights For Value Based Management Strategic Brand Management Capital Market Information Controlling

7 Valuation Of Real Estate Brands [ ]* * At least not publicly available

8 Real Estate A Brand Example Source: Mussler Communication & MAB

9 Real Estate A Brand Example Source: Mussler Communication & MAB

10 Real Estate A Brand Example Source: Mussler Communication & MAB

11 Brand Development Objectives In Real Estate Establish a brand profile above and beyond functional characteristics Create brand awareness and brand knowledge in all development and building phases Support commercial marketing & sales activities Achieve brand acceptance in its environment Facilitate the creation of sustainability in connection with a project Source: Mussler Communication 11

12 PR Information Material Events/ Promotions Advertising Sponsorship Internal Communication Concept & Planning Development New Building Operations Source: Mussler Communication 12

13 Replacement Costs (= Sachwertverfahren) Sales Comparison Approach (= Vergleichswertverfahren) German Income Approach (= Dt. Ertragswertverfahren) Discounted Cash Flow (= Int. Ertragswertverfahren)

14 DCF Approach To Value Brands Incremental cash flows Segregation of brand- specific cash flows Increased longevity of cash flows Forecasting brand- specific cash flows Reduced vulnerability Determination of brand- specific discount rates Source: Prof. Ankenbrand & Mussler Consulting

15 Brand Value Driver Study Step 1: Step 2: Step 3: Step 4: Identification of drivers of real estate value Sensitivity analysis (analysing the effects of each driver) Brand contribution assessment Isolating the brand specific cash flows Source: Prof. Ankenbrand & Mussler Consulting

16 Brand Value Driver Study Building Purpose Architect Reputation Architecture Economic Situation Location Logo Communi- cation Media Interest Government Support Price Fixing Reputation Developer Technical Aspects Technical Infrastructure Tennant Reputation Sustainability Price Level Tennant Mix/ Shares Certification Facility Management Willingness- to- pay Contract Length Reputation Neighbours Source: Prof. Ankenbrand & Mussler Consulting

17 Summary And Next Steps Gap in both academia and business practice identified Valuation methodology developed Brand Value Driver Study in progress (currently conducting interviews) Study results as basis for further academic research and to promote real estate brands in practice

18 Contacts Prof. Dr. Bernd Ankenbrand Karlshochschule Intl. University Karlstraße Karlsruhe P +49(0) bankenbrand@karlshochschule.de Sven Mussler Mussler Consulting GmbH Jungfrauenthal Hamburg P +49(0) sven.mussler@mussler- consulting.de consulting.de Timo Mussler Mussler Communication GmbH Eschenheimer Anlage 25a Frankfurt am Main P +49(0) t.mussler@mussler- communication.de communication.de