Rcm Beteiligungs AG (DE:RCMN) is primarily a residential property developer focusing on the refurbishment of assets in the area of Dresden, Saxony. Additionally it invests in financial assets. RCM acquires low to medium value residential multi-family homes and modernises them. The objective is to achieve rent increases and an appreciation of the asset value. RCM realises value by selling the asset and re-investing in new real estate assets and opportunistic financial participations. While the real estate business accounted for 89% of revenues and represented 70% of the balance sheet total of €55m in 2016, the financial holdings and participation business represented 11% of revenues and tripled in value to €5.5m.
RCM exploits deep knowledge of the Dresden market
RCM’s property business is focused on the Dresden area, but it also holds some legacy assets in other selected locations. RCM adds value through sourcing attractive assets with the potential for profitable refurbishment and reduction in vacancies. Valuation improvements are crystallised through asset sales, with cash largely being recycled into new opportunities. In addition to real estate assets, RCM acquires shares and financial investments it considers to be undervalued.
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