Investment Process


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.

 

Our 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
  • 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