TESTA | Real estate asset management

Asset Evaluation Study for a portfolio of residential buildings for rent

The Challenge

2021, Spain
+280 real estate assets, +19.000 housing units

TESTA is the leading company in the residential rental sector in Spain. The group owns and manages a portfolio of more than 19,000 housing units throughout the country. Since 2018 it is listed on the Alternative Stock Market (MAB). Since 2019, its largest shareholder is Blackstone, the leading global investment fund in the real estate sector.

In 2020, TESTA decided to analyze its assets for detecting potential able to increase their real estate value and the quality of the housing product. With this goal, THE INNOVA ROOM was hired to design and manage the asset revaluation study, coordinating a multidisciplinary technical team.

THE INNOVA ROOM has wide experience in real estate portfolio management, in multiple activity sectors and scales.

How We Did It

THE INNOVA ROOM counts with senior professionals specialized in real estate strategy and management, at any scale. To undertake this challenge, a preliminary analysis was carried out on a portfolio of 237 priority assets, from which a perimeter of 172 assets was selected for the study.

A) Strategy and process definition

Analysis Strategy: the objective of the study was to find potential able to increase the value of the asset, which could be generated by one or more of these cases:

  • Finding of remaining buildability, suitable to generate new housing units or other uses.
  • Changes of use, usually from commercial area to residential.
  • Implementation of new uses: common services, mixed or innovative uses (such as touristic use).
  • Possibility of better adapting the housing mix to the current needs of the market and the users.

General Plan: firstly, the assets included in the perimeter were segmented into 5 blocks, according to their priority. For this, several criteria were combined: Gross Asset Value (GAV), ownership percentage and location. As a result, a general plan for analyzing all the blocks was set, following a fast-track scheme. This made it possible to obtain the first results into short-term, and gradually refine them across the process.

Management system: a global system was designed for articulating all the information generated, encoding it into quantifiable business data, and generating automated status reports in real time (control panel).

Process flow: designed for the analysis of each asset, establishing study phases, decision or delivery milestones, the outcome in each deliver and the responsible for each decision milestone.

  • Determination of objectives: information to be analyzed, deadlines and outcomes.
  • Design of data entry forms, deliverables from external teams and reports (by asset, by phase, global, etc.). In particular, periodic reporting tools to inform TESTA of the progress of the project and help the decision-making.
  • Establishment of metrics and key performance indicators (KPI).
  • Parameterization of findings for transforming them into business data.
  • Design of the work organization chart, and the structure of both internal (TESTA) and external teams involved.
  • Interlocution between the parties.

B) Team management (external and internal)

In each phase there were several architecture teams working on the technical-urban analysis of each asset. THE INNOVA ROOM leaded all teams and was in charge of:

  • Select all teams and negotiate the scope of work.
  • Communicate the goals, train them in the procedures and supervise the project development.
  • Distribute the assets for each team, with criteria of  work efficiency for the study of local regulations.
  • Manage delivery deadlines and outcome quality.
  • Manage the global budget.
  • Review and approve the reports in each phase. If necessary, make adjustments to the design proposals, to achieve a greater revaluation of the asset.
  • Integrate the data in the global management system, and issue the final reports to TESTA.

In parallel, THE INNOVA ROOM coordinated the internal TESTA teams collaborating with the study from these areas:

  • Design and Project Managers (document management and updates about the current state of the assets).
  • Asset Managers (responsibles for each asset global business).
  • Retail Asset Managers (responsibles for retail rentals).

C) Information management

Throughout the study process, a rigorous treatment of the analyzed portfolio’s documentation was carried out. For this, there were defined: a global classification system, a file naming system and traceable data integration into TESTA’s information systems.


Within the set period of 12 months (and even ahead of schedule), it was possible to analyze all the 172 selected assets. Approximately half of them presented findings likely to generate greater real estate and commercial value. This 50% was prioritized according to its potential and feasibility, and was transferred to TESTA’s internal teams for the elaboration of business cases.

In future phases, an activation of project, bidding and construction actions is foreseen, to materialize the value found.

External technical teams coordinated:
Artaza y Cinca
Pernas Varela (Pilar Sánchez Cid)

Images source: TESTA and The Innova Room.

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