Glossary entry

German term or phrase:

Eigenkapitalrenditeforderung

English translation:

required return on equity

Added to glossary by Martin Purdy
Oct 28, 2013 21:55
10 yrs ago
German term

Eigenkapitalrenditeforderung

German to English Bus/Financial Real Estate Investment / returns on equity
Context: definitions of "Core" and "Core+" in respect of leased commercial properties as below. It's the "Forderung" part that I'm not quite sure what to do with:

Core: *Eigenkapitalrenditeforderung* 4–6 %, Fokus auf bonitätsstarke Nutzer, voll vermietet, mit langfristigen Mietverträgen, hohe Ausstattungsqualität, Fremdkapitalquote max. 50 %
(Definition Jones Lang LaSalle).
Core+: *Eigenkapitalrenditeforderung* 6–8 %, Fokus auf sehr gute und gute Lagen, Nutzer mit guter Bonität, ggf. geringer Leerstand und kürzer laufende Mietverträge, Fremdkapitalquote 40–60 % (Definition Jones Lang LaSalle).

Is it simply "expected" RoE, or is there more to it than that?

Discussion

philgoddard Oct 28, 2013:
Yes, expected or requirement.

Proposed translations

11 hrs
Selected

required return on equity

"Eigenkapital" = the equity (i.e. non-borrowed) element of the investment.
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4 KudoZ points awarded for this answer. Comment: "'Required' seems to be the consensus - many thanks."
+1
18 mins

required guaranteed return on investment

I would say ...
Peer comment(s):

agree AllegroTrans : I would omit "guaranteed" as I don't think such a thing exists (apart from fixed interest investments yielding around 2% pa)
37 mins
neutral alec_in_France : Like Allegro, without "guaranteed", but "investment" is too vague, especially as the "Fremdkapitalquote" is specifically mentioned
11 hrs
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