{"id":1178,"date":"2026-03-24T12:53:50","date_gmt":"2026-03-24T10:53:50","guid":{"rendered":"https:\/\/scivalue.it\/blog\/?p=1178"},"modified":"2026-03-24T12:58:04","modified_gmt":"2026-03-24T10:58:04","slug":"capex-property-investment","status":"publish","type":"post","link":"https:\/\/scivalue.it\/blog\/eng\/capex-property-investment\/","title":{"rendered":"Capex and Real Estate returns: where the value of the investment comes into play"},"content":{"rendered":"\n

In recent years, countless property portfolios have required refurbishments and upgrades. Investing in Capex is once again a key focus for funds and asset management companies<\/strong>, playing a crucial role in shaping both profitability and overall asset performance.<\/p>\n\n\n\n

For the CEO of SCI Value, Mr Salvatore Sesto<\/strong>, engineer, the first point to clarify concerns its application.<\/p>\n\n\n\n\n\n\n\n

\u201cIt is important to clarify the context in which Capex is being used<\/strong>. When considering Capex costs in the context of property company management (i.e. routine maintenance and, in some cases, extraordinary maintenance), it is necessary to acquire a thorough history of maintenance work carried out on the property so that future budgets can accurately reflect needs.<\/em><\/p>\n\n\n\n

Decisions should not rely on the cost of past interventions as the only reference. It is essential to understand the nature of the intervention<\/strong> and assess it both technically and financially, updating figures based on recent market research and a realistic review of the asset\u2019s state of repair.<\/em><\/p>\n\n\n\n

Capex for major refurbishments or new developments<\/strong> is a different matter. In these cases, project planning and cost estimation must follow strict processes. The project and bill of quantities form the backbone of the investment and determine Capex allocation.<\/em><\/p>\n\n\n\n

Outdated and incomparable pricing lists lead to Capex figures that don’t match the real requirements of the investment<\/strong>. SCI Value’s Reverse Value Engineering RVE\u00ae<\/a> method recalibrates costs to reflect real market values and ensure the optimal use of financial resources.\u201d<\/em><\/p>\n\n\n\n

The difference is methodological rather than operational: the way Capex is organised determines the soundness of the intervention.<\/p>\n\n\n\n

Technical accuracy; strategic alignment<\/h3>\n\n\n\n

All too often, investment is treated as a mere box-ticking exercise. In practice, what really makes the difference to a property\u2019s prospects is the quality of the technical and economic analysis <\/strong>behind it.<\/p>\n\n\n\n

As Mr Sesto notes:<\/p>\n\n\n\n

\u201cThe cost of refurbishing or maintaining a property can’t simply be seen as an aside. It’s during Capex planning that major errors can creep in. This is where further investment is needed<\/strong>.\u201d<\/em><\/p>\n\n\n\n

The accuracy of estimates becomes a strategic choice, especially in relation to all future objectives<\/strong>.<\/p>\n\n\n\n

\u201cWhen maintenance plans or new projects are based on accurate costing, it is possible to maintain or even increase an asset\u2019s value from an investment perspective<\/strong>. This is exactly what Reverse Value Engineering RVE\u00ae makes possible.\u201d<\/em><\/p>\n\n\n\n

Getting this right also has a knock-on effect later down the asset\u2019s lifecycle. For divestment or refinancing, ensuring alignment between the project, costings and market values <\/strong>is vital for realistic valuations and protecting the investor\u2019s expected returns.<\/p>\n\n\n\n

The most common mistake<\/h3>\n\n\n\n

In the acquisition or repositioning phases, poor methodology is still the biggest risk factor.<\/p>\n\n\n\n

For Mr Sesto, the most frequent error is<\/strong>:<\/p>\n\n\n\n

\u201cResorting to approximate or inconsistent methods<\/strong>. Using as a comparative reference construction or reconstruction from a different asset, even in the same location, almost inevitably leads to underestimating or overestimating Capex<\/strong>, which puts the investment at risk.\u201d<\/em><\/p>\n\n\n\n

It is not about the expenditure itself, but rather the criteria used to determine it.<\/p>\n\n\n\n

In the modern real estate sector, managing this process is about overseeing the overall quality of the transaction<\/strong>, transforming an accounting item into a tool for creating technical and economic consistency capable of protecting and consolidating value.<\/p>\n","protected":false},"excerpt":{"rendered":"

In recent years, countless property portfolios have required refurbishments and upgrades. Investing in Capex is once again a key focus<\/p>\n\t\t

\r\n\t\t\tread<\/span><\/path><\/g><\/svg><\/a>\r\n\t\t<\/div>","protected":false},"author":3,"featured_media":944,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[93],"tags":[194,88],"class_list":["post-1178","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sci-value-world-eng","tag-property-investment","tag-reverse-value-engineering-eng"],"yoast_head":"\nCapex and Real Estate returns: where the value of the investment comes into play<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n