In the Project Development module taught by Prof. Dr.-Ing. Andreas Link, bachelor’s students in the Industrial Engineering (Construction) and Construction and Real Estate Management/Facilities Management (BIM for short) programs are taught the fundamentals. The primary focus is on examining the potential of underutilized real estate or unused land, synthesizing possible usage ideas into a concept, and demonstrating their feasibility and economic viability.
Olaf Geist, Managing Director of MAGNA Projektentwicklung West GmbH, based in Essen, provided an impressive account of how companies proceed when acquiring such projects. MAGNA manages and invests in real estate projects for a major German healthcare pension fund. Key success factors include not only previously developed projects (e.g., Hamburg Height 5, MAGNA Tower Essen) but also a structured and analytically sound approach within interdisciplinary teams, creativity, strong interpersonal skills, market awareness, and a robust network.
Once a coherent concept has been developed, solid financing must, of course, be secured. Verena Rupp from DZ Hyp Mortgage Bank provided in-depth insight into the requirements for arranging loans. Ms. Rupp studied business administration at our university and has served for several years as Regional Director at the Frankfurt Regional Center, where she is responsible for commercial project development financing in the states of Hesse, Rhineland-Palatinate, and Saarland. Project development financing is generally very challenging, as it involves a property that has not yet been built or approved; therefore, the project developer’s experience and expertise, the quality of the documentation and collateral (equity, land registry), and, finally, the overall impression the project developer conveys. From a business management perspective, key assessment criteria include debt service coverage, loan-to-value ratio, and probability of default, among others.
For the students, these two guest lectures provided final, important insights for the project papers and colloquia they are preparing on specific properties. They also served to once again highlight the diverse and interesting career opportunities in project development.
Students in the Project Development module, guest lecturers Verena Rupp (4th from left) and Olaf Geist (5th from left)
