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Insights 24.08.2024

Stran­ded As­sets – From Risk to Re­turn

Jasmin Eckert

In the real estate sector, companies are increasingly facing the risk of "stranded assets."

In the real estate sector, companies are increasingly facing the risk of "stranded assets." These "stranded assets" lose value because they become inefficient or unusable due to regulatory, environmental, or technological changes. Especially in light of stricter EU building regulations, it is crucial for real estate investors and owners to proactively address these challenges.

 

Challenges for Existing Buildings

Stranded assets are primarily an issue for older buildings that no longer meet current efficiency standards. These buildings incur high energy costs, which significantly affects both their profitability and attractiveness to investors. The EU Energy Performance of Buildings Directive (EPBD) focuses on the worst-performing buildings to achieve rapid progress in climate protection. Therefore, it is essential for real estate investors and owners to adapt their existing buildings to these new standards in a timely manner.

 

Energy Efficiency as a Key to Maintaining Value and Profitability

Energy efficiency is not just a matter of sustainability; it is also a crucial economic factor. Properties that meet high efficiency standards benefit from lower operating costs and higher demand. Given the increasing requirements for existing buildings and the growing pressure to decarbonize, it is clear that investments in energy-efficient technologies are essential to remain competitive in the long term.

 

For companies that take measures to improve the energy efficiency of their existing buildings, this means:

 

  1. Protection against Stranded Assets: Modernized buildings are better protected against regulatory changes and rising energy costs.
  2. Increase in Long-Term Property Value: Energy-efficient properties have higher market appeal and generate stable returns.
  3. Compliance with Legal Requirements: Investments in energy efficiency help meet the stricter EU regulations.

     

Innovative Solutions for Future-Proof Properties

This is where PAUL comes in with its innovative solutions. Using artificial intelligence, heat pumps, and photovoltaic systems, existing buildings are not only upgraded to an A-class efficiency level but also made CO2-neutral. This enables a sustainable increase in property value while simultaneously meeting legal requirements. The integration of these technologies plays a key role in minimizing the risk of stranded assets and ensuring future-proof returns. Energy-efficient buildings become attractive investment properties that generate stable long-term returns.

 

Investing in the Future with PAUL

At a time when the real estate sector is under pressure due to regulatory changes and rising energy prices, and concerns about increasing ancillary costs are widespread, PAUL solutions offer a valuable opportunity to preserve and enhance the value of existing properties while simultaneously reducing costs related to energy consumption. Additionally, PAUL offers a transferable maintenance service in accordance with the operating costs regulation, which not only optimizes operating costs but also prepares buildings for climate-friendly heating. This makes PAUL Performance properties "heat pump ready" – an investment in the future that pays off.

 




 

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