Value-based Asset Development Management

• 16 May 2019
• Property Focus
• 3470 Views

By Michelangeloop

The real estate industry is often defined as the process of buying and selling properties. In the 21st Century, real estate has grown into an industry that attracts professionals in fields including asset management, facilities management, and valuation and real estate. What are the differences between these roles?

Asset Management:

Jones (2008) defines asset management in the RICS Public Sector Asset Management Guidelines as ‘a structured process that seeks to ensure best value for money from property assets in serving the strategic needs of local authorities.’ Part of the strategy includes principles of asset management, property finance, property economics and research. This course provides the fundamentals to increase the value of developed assets. The objectives are to maximise the net income with optimum operating expenses and thus create higher capital value of the developed assets.

Facilities Management:

Atkins (2009) defines facilities management as ‘an integrated approach to operating, maintaining, improving and adapting the buildings and infrastructure of an organisation in order to create an environment that strongly supports the primary objectives of that organisation, which is profit maximisation.’ The maintenance principles, building services, refurbishment/retrofitting and sustainable practices will be taught as core modules in the facilities management course. It focuses on different maintenance systems, refurbishment/retrofitting of old buildings and creating value within a sustainable environment for future generations.

Valuation:

Normally there is a question of how a real estate price is set. Valuation is the answer. The valuation course covers the valuation process, methods of valuation, property Investment and income analysis. As a conclusion, Scheurwater (2017) mentioned that valuation is ‘the process to determine the value of property, which is usually undertaken for banks and investors.’ This provides a confirmation of the property value for banks to give loans to investors, while investors pay the appropriate price for the property.

Real Estate:

Real estate covers property development, development economics, project and construction management. Real estate is no longer about just buying and selling property or land, but covers at least 14 scopes as stated in RICS Real Estate Management. They include rental, inventory, repairs, access, insurance, service charges, alterations, assignment, underletting, breach of covenant, lease restructuring, sustainability, information management, disputes and termination of lease. With this knowledge, a real estate manager provides more value-based services in the real estate industry.

RCI – Associate Degree in Real Estate and Valuation:

The Royal Chartered Institute (RCI) invites our readers to visit RCI on the 1st floor of Steung Mean Chey Market to find out more about our course structures, fees, study pattern, and career prospects for those who successfully complete the real estate and valuation course.

References: Jones, Keith et. al. (2008), RICS Public Sector Asset Management Guidelines, RICS, UK Atkin, Brian and Brooks, Adrian (2009), Total Facilities Management, 3rd Edition, Wiley Blackwell, UK. Scheurwater, Sander et. al. (2017), RICS The Future of Valuation, RICS, UK Anonymous (2016), Real Estate Management, 3rd Edition, RICS, UK.

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