Decomposing Consumer Wealth Effects: Evidence on the Role of Real Estate Assets Following the Wealth Cycle of 1990-2002

The creation of suitable workplace environment to support employees in performing their tasks is becoming a key issue for many organisations faced with constant change. Numerous workplace strategies have evolved in recent years to provide for convenience and flexibility, as well as functionality and privacy. Problems usually arise at the implementation stage where organisation culture and practices often run counter to the need for innovation strategies. This paper contents that the creation of enabling workplace requires a proactive property management model that integrate real estate provision and facilities services management. The value contribution of real estate assets can only be optimised when the property/facilities professional takes on the responsibility of continuously providing appropriate facility solutions to business challenges. An essential prerequisite is the role of property/facilities management as the custodian and enabler of the corporate workplace environment. The focus of the research was to provide a business perspective to the role of real estate assets(property) in supporting the fulfilment of corporate business plans. Based a comprehensive survey of published literature and a series of in‐depth interviews of corporate real estate/property/facilities managers, an integrating resources management framework was developed to model the nature of interactions between strategic business planning and facility operations in an organisational setting.

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The role of real estate assets in supporting the fulfilment of corporate business plans: key organisational variables for an integrated resource management framework

Facilities ◽

10.1108/02632770010340663 ◽

2000 ◽

Vol 18 (7/8) ◽

pp. 273-281 ◽

Cited By ~ 7

Author(s):

Danny Shiem‐Shin Then

Keyword(s):

Resource Management ◽

Real Estate ◽

Management Framework ◽

Integrated Resource Management ◽

Business Plans ◽

Corporate Business ◽

Real Estate Assets

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Reconstruction or Reuse? How Real Estate Values and Planning Choices Impact Urban Redevelopment

Sustainability ◽

10.3390/su12104060 ◽

2020 ◽

Vol 12 (10) ◽

pp. 4060 ◽

Cited By ~ 1

Author(s):

Alessia Mangialardo ◽

Ezio Micelli

Keyword(s):

Real Estate ◽

Urban Redevelopment ◽

Small Cities ◽

Metropolitan Cities ◽

Property Owners ◽

Economic Expectations ◽

Private Investors ◽

Real Estate Assets ◽

The Relationship

Local administrators and private investors rely on various urban redevelopment strategies, the choice of which depends on the economic expectations of property owners and investors. Some of these options foresee replacing obsolete buildings with new constructions; others prefer the reuse of existing assets. This study examines the conditions that make these different strategies feasible, bringing to light the aspects that favor demolition and reconstruction processes over interventions based on the redevelopment of existing assets. The analysis focuses on the variables that determine the choice between these two options. The model that has been developed highlights, on one hand, the role of urban planning tools and urban densification and, on the other, the relationship between the land market and the value of existing assets. The model has been tested on five cities in northern Italy, which fall into three territorial categories—large metropolitan cities, medium-sized cities, and cities of limited rank—to test how different social and economic contexts affect the feasibility of the strategies we evaluated. The results of the study underscore the extent to which the demolition and reconstruction of existing assets is only viable in certain limited areas and under particular market and settlement conditions. While large metropolitan areas seem to have the option of radically replacing existing real estate assets, medium-sized cities and especially small cities are constrained in redeveloping existing urban assets and must forego demolition and reconstruction projects, which do not prove to be economically feasible.

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Valuation effects of REIT mergers and the role of diversification

Managerial Finance ◽

10.1108/mf-10-2017-0412 ◽

2018 ◽

Vol 44 (4) ◽

pp. 424-438

Author(s):

John C. Alexander ◽

Thomas M. Springer

Keyword(s):

Real Estate ◽

Abnormal Returns ◽

Wealth Effects ◽

Geographic Diversification ◽

Real Estate Investment ◽

Content Type ◽

Valuation Effects ◽

Property Type ◽

Value Changes

Purpose Merging two real estate investment trusts (REITs) consolidates two real estate portfolios. The purpose of this paper is to provide further evidence on the market’s valuation of property type and geographic diversification of REITs by looking at the diversification impact of mergers involving domestic REITs in the Modern REIT era (post 1992). Design/methodology/approach The authors classify equity REIT mergers according to whether they maintain portfolio focus or alter their focus with respect to the geography and property type distribution of the underlying real estate. Then, using a domestic REIT index, the authors examine abnormal returns around the merger announcement to ascertain how portfolio changes affect value. Findings Although the results show no abnormal returns to the combined REIT for the 126 mergers in the sample, mergers that maintain geographic focus and alter the property focus contribute positively to the abnormal returns. Acquiring REITs show negative abnormal returns for mergers that either diversify geography or maintain property focus. Target REITs earn positive abnormal returns no matter the diversification impact of the merger. Research limitations/implications The results suggest that changes to the composition of the REIT’s property portfolio have valuation implications. The results suggest that during the modern REIT Era, property diversification created positive wealth effects for the acquirer. Originality/value This research adds to the evidence on how REIT investors value changes in the diversification of the underlying properties, and implies that the investor perception of portfolio effects from mergers may vary over time as the REIT industry expands and consolidates.

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