Global investment. Local expertise.

Our experts guided a major investor through the complexities of one of the world’s most unique property markets.

The coronavirus pandemic created a real estate gold rush, with individual and institutional investors alike prospecting around the world. Like any gold rush, the rewards are tempting but the risk is real. Volatility was heightened everywhere as everyone tried to adapt to a ‘new normal’ but some areas come with their own inherent risks.

Austria is one such example, with its thriving residential market a captivating opportunity. However, with its heavily regulated system comes the risk of financial peril for the unprepared. One would-be investor seeking a guide through this legislative jungle was our client, a US-based hedge fund with offices around Europe.

Having developed an investment thesis, they were keen to test its assumptions but lacked the local knowledge necessary to do so, leaving their plans in limbo.

Hyphen connected international investors with national specialists.

We assessed what the client would require and swiftly identified the types of individuals needed. This project would require a diverse and highly specialised team with understanding of real estate, law, economics and politics.

Tapping into our comprehensive network of contacts, we identified the ideal mix of high-level specialists to help the client get the answers they needed. Four experts from a variety of fields were swiftly recruited and provided their valuable insights.

Armed with a better understanding of the market, the client was able to make a fully informed decision on the investment plan it was considering.

Hyphen’s experts tested the assumptions of the thesis at the local, regional and national level, factoring in the small nuances that apply specifically to Austria. The team delivered a risk assessment, market fragmentation data and offer pricing advice, giving the client a more comprehensive knowledge of the environment than they could have gathered otherwise.

Armed with this information, the hedge fund decided to exercise caution and hold off pursuing the opportunity, saving themselves USD$2-3 billion in the process.

Fact Sheet
Key figures
Duration
Q4 2020–Q2 2021
Results
Hyphen’s specialist team’s assessments helped a US-based hedge fund decide not to execute a risky investment plan in the Austrian real estate market.
Services provided:
Team development
We worked with our client to determine what skillsets were needed to validate their investment model in the heavily regulated and nuanced Austrian market.
Experts provided
We recruited a team of experts with different backgrounds:

• A former economist at the Austrian Ministry of Finance

• A political director at one of Austria’s political parties

• An adjunct professor focused on the legal framework of housing, social housing and construction law

• A former bank executive with in-depth experience in Austria’s real estate market, who went on to found a data analytics start-up

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