Strategies

We look for older assets in Class B location where we could 1) raise rents significantly by extensive renovation, and /or 2) boost income by enlarging the property to increase the rentable space. Common development includes rental or condo conversion.

This type of development can deliver 10-15% annual return, where 5-8% can be attributed to income and 5-7% to asset value appreciation.

Typical value-add project timeframe: 1-3 years.

We look for non-performing assets in Class C location or ground-up opportunities in Class A/B/C locations. Common development includes asset repositioning (e.g. hotel to rental conversion), or ground-up rental or condo.

It’s difficult to generalize the return on this type of development. You can normally expect an annual return of 12% or more.

Typical opportunistic project timeframe: 3-5 years.

We look for distressed opportunities particularly during the down time of a real estate cycle. In tough time, we strive to have the “firing power” to seize special situations at an attractive basis and help increase the total returns to our long-term investors.