Philosophy

At HTH, we care deeply about capital preservation. It is our guiding principle that we (as the GP) will do the best we can to preserve investor’s (LP’s) capital and ourselves.

As with any development opportunities, we analyze the downside risk first. We use conservative assumptions to test each deal in distressed situations to make sure the preservation of LP’s investment.

If it’s a good deal, we believe the upside will almost always take care of itself.

As a result of our guiding principle, HTH generally does not seek leverage over 50-60%. Here is our thought process.

Real estate is a cyclical industry. We simply cannot foresee the future and time the market. There will be bad time inevitably. We want to make sure to have the “staying power” during the bad time! Only when we can survive and stay through the tough time, we might have some “firing power” to take advantage of special situations.

We may forgo additional return which would have been possible using higher leverage, but we may be able to “catch up” through those distressed opportunities.

Real estate development has become more and more efficient, particularly in dense urban centers where market competition is enormously fierce. It is increasingly difficult to deliver outsized returns at scale. At HTH, we believe superior return is still possible with five important elements, all of which we strive to achieve everyday.

• Tireless inquisition of the market

• A disciplined approach with a long-term outlook

• A customer-centric product

• A timely execution within budget

• Unwavering attention to details

At HTH, we want to make sure investors’ interests are aligned with ours. Depending on the size of the investment, we always co-invest, typically 3-5%, alongside with our LPs.

We seek fair compensation for our work to create “value” and returns to our investors. It allows us to focus on the development and helps nurture a healthy business relationship between GP and LPs.

The fee is a reminder of our duty to deploy LPs’ capital in an intelligent and disciplined manner and drives us to deliver superior returns as we are committed to do.

By doing all of the things above, we hope to develop a long-lasting reputation as a disciplined developer in the industry. We believe strongly: it takes 20 years to build a stellar reputation, and 5 minutes to destroy it. We won’t let it happen.