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Real Estate

Overcoming Stressed and Distressed Assets

Secure, Cost-Optimized, and Realistic Scenarios for Troubled Real Estate

Has your real estate asset or development project run into trouble? Do you need to stabilize it quickly, without losing time, capital, or your reputation? Our real estate experts will show you the road to recovery and help you execute the turnaround.

The Need for Swift, Concerted Action

Real estate projects stall for many reasons like rising interest rates, the shift to remote work, soaring construction costs paired with liquidity crunches, rising non-performing loans (NPLs), or stricter security requirements.

Whatever the trigger, the result is the same – the asset becomes unprofitable and the original business case collapses. In these cases, lenders and developers must act immediately. Taking a “wait-and-see” approach is no longer a viable strategy.

We put distressed properties back on the path to profitability. We do this by restructuring planning frameworks, exploring alternative development models, pivoting to new asset classes, or evaluating disposal scenarios. By balancing technical constraints with commercial realities, we identify the optimal turnaround or exit strategy and then step in as your interim developer to execute it. 

Unlocking New Potential: Our Core Focus Areas

  • Value engineering and cost optimization

     

    We pinpoint avoidable project costs and uncover areas for improvement, providing you with a highly realistic valuation of your property. 

     

  • Technical due diligence, valuation, and restructuring

     

    Our specialists handle all the technical questions, gathering, structuring, and evaluating all relevant data so you have a clear picture of the asset.

     

  • Transparent, professional reporting

     

    Transparency builds trust. We document all relevant facts and project changes, ensuring you always know exactly where things stand. 

     

With us, you get a single, dedicated point of contact who coordinates the full multidisciplinary expertise of the Drees & Sommer Group on your behalf.  

 

Immediate, Long-Term, or Preventive Support

The clean break: Is your project or asset trapped in a liquidity crisis with no viable path forward? Sometimes, a sharp, decisive exit is better than a prolonged downward spiral. As your structuring partner, we can rapidly identify the best short-term solution. We’ll advise you in your role as a creditor, develop actionable alternatives, and guide you through a controlled, orderly exit.

New perspectives: Is your project underperforming? We step in as your implementation partner to get it back on the road to long-term profitability. We restructure the initiative, take over interim management, and drive the project to completion so it ultimately generates sustainable returns.

Crisis prevention: The best problem is the one that never happens. We provide proactive technical and commercial consulting, empowering you to actively manage your portfolio and protect asset value over the long term. 

Your benefits

  • Rapid orientation when your assets hit a crisis.
  • A reliable foundation for critical decisions.
  • Fewer risks
  • Stabilized projects and protected asset values – with the potential for sustainable growth.
  • Improved liquidity and renewed investment capacity.

Put your stressed and distressed assets in our hands. Together, we can navigate the risks and seize the underlying opportunities. 

Let's talk!

We´re happy to help.

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