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Investment Process

Delivering Returns Through Active Asset Development

Targeting properties with untapped improvement potential

Yangji Asset Management follows a detailed, multi-step process to identify, acquire, enhance, and divest distressed real estate assets for maximum value.

Structured Approach to Unlocking Value

The targets are selected carefully along our structured investment process. Usually the target property shows one of the following characteristics:

  • Underperforming revenue streams: the property is not operating at full occupancy and/or the leases that are in place are at levels below market rents or that don’t match expectations/pro forma.
  • Overrun operating expenses: the costs to operate and maintain the property have increased beyond budget or exceed norms to a point where they are excessive.
  • Unserviceable debt: when market conditions adversely shift or projected rents are no longer achievable, or both, the property owner is unable to meet debt service obligations.

A proven method to drive asset performance.

Our main regional investment focus is South-Korea. We only invest in distressed real estate properties with a promising business model with existing market demand and a sustainable competitive advantage.

Investment Process

1. Screening
  • Review of business model and identification of strategic options to identify opportunities
2. Due Diligence
  • Assess repositioning opportunities
  • Detailed turnaround plan highlighting optimization- and synergy-potentials
  • Priorities of restructuring initiatives and measures
  • Evaluate the collateral
3. Initial Ownership
  • Supervise judicial action and recovery
  • Prepare a preliminary holding period budget
  • Solve mission critical issues
  • Provide transparency on liquidity
  • Realize Quick Wins
4. Value Enhancement and Protection
  • Shape the business model
  • Implement the turnaround plan with restructuring measures/li>
  • Act as property manager until the asset is sold
5. Divestment
  • Elaborate identified exit options
  • Develop best alternative to exit the business
  • Market and sell property
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