Value Up Services

Introduction to the Value-Up Team

The Value-Up Team is a specialized organization that provides comprehensive engineering solutions related to real estate. We primarily deliver professional advisory services to asset management companies (AMCs) and corporations, establishing crucial decision-making criteria for asset value enhancement and risk management of their real estate holdings.

Composed entirely of specialized real estate architects, our team expertly reviews the Highest and Best Use (HBU) and revenue maximization strategies for properties.

Based on thorough legal reviews of building and zoning codes, we analyze legal feasibility. Following comprehensive assessments of building conditions through on-site physical due diligence, we determine the optimal scope of construction and conduct comprehensive feasibility studies. This process is guided by yield sensitivity against construction costs relative to rental income, ultimately deriving the optimal value enhancement strategy.

Furthermore, we specialize in Project Management (PM) for real estate construction, including new developments, remodeling, interior fit-outs, and capital expenditure (CAPEX) projects. We provide differentiated real estate solutions from an engineering perspective, encompassing Due Diligence, Development PM, and Value-Add Consulting.

  • Physical Due Diligence
  • Remodeling Consulting
  • Workspace Improvement Consulting & Interior Turnkey Execution
  • Construction Project Management (New construction, remodeling, interior fit-outs, CAPEX projects, reinstatement/make-good, development properties)
  • Value-Add Consulting
  • Development Property Feasibility Review
     

Value Up Strategy Service

What is Value Up Strategy Service?
Value-Add Consulting derives the Highest and Best Use (HBU) for all real estate assets. We provide strategies for improving existing assets and generating revenue, as well as assessing the value and yield enhancement potential of prospective acquisitions. We deliver optimal value-up solutions through various methods, including re-tenanting, extension, change of use (conversion), development, and remodeling.

Necessity

The Highest and Best Use of any real estate changes over time depending on the site's zoning, district, location, market conditions, real estate policies, economy, and user needs. Therefore, it is necessary to consider appropriate value-add strategies at the current juncture to maximize returns through sound investment decisions.

Revenue does not unconditionally increase simply through extension, remodeling, or change of use; sometimes, maintaining the current status quo may be the optimal utilization strategy.

Consequently, investment decisions must be made after a comprehensive review of fundamental legal regulations, building scale feasibility, potential for change of use, surrounding tenant demand, appropriate rental rates, potential buyers, and exit (sale) strategies.

Key Scope of Work
  • Providing optimal value-up solutions for buildings
  • Reviewing building scale by alternative for the Highest and Best Use development strategy
  • Reviewing value enhancement strategies such as extension / conversion / remodeling / environmental improvements
  • Permit checking / Building condition assessment / Development concept formulation / Construction methodology and schedule planning / Budget planning support
  • Proposing phased strategies aligned with investment objectives, investment horizons, and costs
  • Providing differentiated strategies that consider actual operating income, factoring in leasing and sales, rather than relying solely on physical condition, permits, or cost reviews

When is Value Add Consulting Needed?
  • When determining the strategic direction of owned real estate (sale, re-tenanting, change of use, remodeling, etc.)
  • When reviewing utilization strategies for idle properties
  • When reviewing revenue enhancement strategies through value-up plans during potential real estate acquisitions
  • When requiring review for other real estate value enhancement initiatives

Physical Due Diligence

What is Physical Due Diligence?
Physical Due Diligence provides crucial criteria for vital decision-making in real estate investments—such as value assessment, future repair planning, and budget formulation—through an objective evaluation of the target property's physical condition (architectural, electrical, mechanical, fire safety, etc.) during acquisition or disposal.

Necessity

Professional diagnostics identifying major defects, permit-related issues, and estimated costs due to aging prior to purchase serve as critical benchmarks for key decisions, including negotiating the purchase price with the seller and estimating future operational expenses.

Frequently, millions are required post-acquisition to address legal risks from non-compliance with related regulations, equipment replacement due to aging, and defect remediation. Therefore, due diligence is absolutely essential to comprehensively assess the physical state of the building, facilitate negotiations with the seller, and establish budget reserves for post-acquisition management.

Key Scope of Work
  • Investigating major defects and deterioration of the property, and proposing remediation solutions
  • Proposing CAPEX (Capital Expenditure) and R&M (Repairs & Maintenance) cost estimates
  • Reviewing permitting and legal risks
  • Verifying and reviewing the operational status of major MEP (Mechanical, Electrical, Plumbing) and fire safety equipment
  • Submitting a comprehensive report and providing technical advisory within 2 weeks post-inspection

When is Physical Due Diligence Needed?
  • When needing to review major building conditions for price negotiation with the seller during an acquisition
  • When requiring confirmation of the projected maintenance and CAPEX costs post-acquisition
  • When needing objective documentation of the building's condition during a property sale

Construction Management / Project Management (PJM)

What is PJM (Project Management)?

PJM (Project Management) refers to the comprehensive management of all processes for any real estate-related construction—from planning, budgeting, vendor selection, design, bidding, and contracting, to construction, completion, and final settlement—acting entirely on behalf of the client (project owner).

Furthermore, it provides advanced professional management services that realize maximum benefits for the client through rational judgment and coordination of various opinions among designers, contractors, and construction managers (CMs).

Necessity

All construction projects—whether interior fit-outs, remodeling, reinstatement, CAPEX upgrades, new construction, or development projects—go through a similar sequence of processes. In reality, relying on non-expert clients to make decisions at each stage forces them to bear all resulting risks entirely.

A common mistake is fully delegating and relying solely on the construction contractor, which inevitably leads to problems. Contractors frequently propose the lowest cost before signing, but due to various reasons post-completion, final construction costs routinely inflate to 120~150% of the original contract amount.

Moreover, issues frequently arise due to contracts with unfavorable terms for the client, as well as a lack of response to defect management during or after construction completion.

Accordingly, our experts across each discipline represent the client's interests, overseeing all project management tasks from planning to completion through rigorous contract, risk, and budget management.

Key Scope of Work
  • Acting as an agency for all project phases from planning to completion from the client's perspective
  • Managing all real estate-related construction: Interior / Remodeling / New Construction / CAPEX / Reinstatement (Make-good)
  • Project planning and master schedule establishment / Initial design review / Budgeting / Preparation for site briefings
  • Comprehensive management of collaborating partners: Architects / General Contractors / CMs
  • Vendor selection support / Construction contract & Bill of Quantities (BOQ) review / Contract structure establishment
  • Cost / Schedule / Construction / Quality Control / Final Settlement
  • Defect remediation (Punch List) review and management

When is PJM Needed?
  • When remodeling an acquired or currently owned building
  • When relocating an office or requiring interior modifications within a building
  • When negotiating and executing tenant space reinstatement (make-good) works
  • When planning CAPEX investment construction for an owned building
  • When requiring new construction for development projects, reconstruction, or vacant land
  • When needing agency services from contract to completion for any other construction projects
  • When requiring construction risk management against unjustified cost increases or unfair contract terms by contractors
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