INVESTMENT CRITERIA
REAL ESTATE INVESTMENT PROFILE OF THE GLOBAL CONTRACTS LIMITED' CLIENTS THE PEOPLE'S REPUBLIC OF CHINA (PRC)
Real Estate Investment Funds Clients and private investment organisations with ready investment capital for Chinese Commercial and Residential real estate investments in the PRC.
China's housing market looks attractive in the long run even amid government efforts to cool prices. A recent slowdown "is healthy because it gives more room for sustainable long-term growth,
1. A leading global investment management business who is seeking (minority or majority) JV partnerships with € 100 of equity investment capacity in Chinese residential product with qualified JV partners into JV project developments. The client will invest in second tier cities and first tier cities without exposure to the third tier cities.
2. Residential, commercial and mixed use category JV investment opportunities for both medium and large development projects and the client has a fund in excess of $500 million for Asian Pacific investments: Typically, the following two categories of investment openings: Residential developments in 1st tier, major 2nd tier and large 3rd. Also, repositioning opportunity in 1 tier cities with population more than 4 million. For this category, the client will typically partner with an experienced local developer to do the development. 1st tier and major 2nd tier cities where the client can add value to it. For both categories, the client would like to take majority stake.
3. Mixed use city centre projects in major Chinese cities so office/retail/hotel/residential mixed use product minority or majority JV structure. The client will invest minimum $50 million min and in much larger scale project developments.
4.(a) Listed and non-listed real estate funds and projects , infrastructure- type projects and equities. Large institutional investor which had increased its Asian Pacific exposure by €800 million is sek iing to invest in Asian focused listed real estate companies and real estate investment investment funds in residential real estate operating companies on selective basis where transfer of skills or knowledge is required by Asian based operators, due diligence is a paramount along with financial economic factors. Client has 2.5 billion € invested in listed real-estate companies and real-estate investment trusts, and 1.5 billion € in private funds, joint ventures and co-investments.
4.(b) Client has €71 million of equity to invest in China with highly qualified local partners to execute Joint Ventures and co-investments and will invest in any product type provided the good project feasibility and commercial viability. The client invests as real estate private equity type of investor acquiring minority stakes in predominantly residential, logistic & retail product but will consider investments in integrated product developers usually minority stakes can be $ 10 million and plus and an average size of $50 million The investor is private investment company.
5. Client will invest in Suzhou, Chengdu, Tianjin, Dalian, Sichuan …and other attractive Chinese cities 1st tier, 2nd tier cities. Qualified private investment company who would be ready to undertake Joint Ventures in China in the residential, hospitality, retail and office / mixed use projects in the investment range of* US$20 -290 million for the existing projects or developments.
6. Retail space, entertainment, restaurant, shopping, cinema, other entertainment activities. Investor can invest $50MM per project with 5 000-15 000 sq foot size., Will consider existing buildings and new developments- Cities: Tie I, Tier II and large Tier III with good economic prospects only in prime sites.
7. Cities: tier 1 and major tier 2 cities in China Location: regional shopping centres with good accessibility by public and private transport, adequate car parking provision, and also with solid middle class demographics/ new housing close by. Properties: prefer existing hypermarket anchored shopping centres; development projects with construction and pre-leasing in progress are also okREAL ESTATE INVESTMENT PROFILE OF THE GLOBAL CONTRACTS LIMITED' CLIENTS PARIS REGION AND FRENCH REGIONS
Office properties:
Client 1]- Core, value-add and development projects (especially pre-let developments)
- Located in Paris, Western business district of Paris and in a less extent in the remaining if the first Parisian ring
- Lot size = between 20 M€ and no real upper limit (200 M€ usually)
Retail properties:
- Core and value-add properties- High street retails, retail parks and shopping centres between 20 M€ and 100 M€ - Located in mature and consolidated retail areas (Paris and the rest of France)
Retail and office product. Client will pay a yield circa 6% if there is potential for rental growth. Minimum lot size for is circa €10m with no upper limit. Located in Paris, Paris region.Client 2: Lot sizes between € 15 and € 50 million both office and retail institutional product in Paris and Paris region Client 3] Core/ core+ investment opportunities fulfilling the following criteria:
- Office: Paris Ile-de-France region and first 5 biggest regional towns in the region. In general, the building should be fully let but the client will take some tenancy risk and has a maximum of 15% vacant if the location of the asset is Prime. Lot size of should be in the range of €20 to €80m with a NIY of 5%+. One of their funds is keen for a trophy asset in Paris and would be ready to see a NIY of 4ish.
- Logistics: Could buy only one asset with a maximum lot size of €20m. The asset should be prime by its location and with a long term secured lease (6-9-year leases). The building should be recently built.
Client 4:: Lot sizes €20 to €50 and €40 to €90 million – Yield of 4.25 reversionary net & active asset management openings accepted.
5] Private investor: Usually transaction above € 20 million [more and less] office, retail and logistic product types. The client can transact quickly and finances its transaction with all equity capital from their cash balance so no debt capital required. Will purchase in Parisian regions where the yield may be more attractive.Can issue LOI fairly quickly.
6] North American institutional client: Min lot size at €50 million and will buy stakes in the asset holdings up to €500 million or more. CBD, La Defense ideally.
7] Highly qualified client who will consider retail and office investment programmes of large investment volume in Parisian prime site CBD, La Defense and wil also invest in German top five property markets, usually can transact trophy assets acquiring stakes of up to €500 million and plus where the investor can exploit upside potential of underlying asset performance.
Client 5:
Age of Buildings: Project developments with granted building permits and a high percentage of pre-letting (at least 70%) Newly constructed or substantially extensive refurbished during the past five years Rental conditions:
• Predominantly long-term leases
• Tenants with investment grade rating
• Diversification of tenants Ownership structure:
• Freehold property and specific property operating company's volumetric property only when properties are acquired and sold at usual market conditions e.g. France Asset type:
• Office buildings in excellent and good locations meeting modern office standards and flexible utilization requirements; cost effective ratio between primary and secondary floor space
• Retailed warehouse
• Logistic units Investment volume: $15 m - €150 m
REAL ESTATE INVESTMENT PROFILE OF THE GLOBAL CONTRACTS LIMITED' CLIENTS ITALY
Core, value added, opportunistic client has €150 of raised equity to invest in shopping centres, offices, logistics, retail, retail/warehouses, retail parks with supermarket anchors, hotels [ Northern Italy but also selective other prospering Italian regions]
DISTRESSED DEBT AND REAL ESTATE PROVIDING JUNIOR DEBT RESUTRUCTURING PORTFOLIO DISTRESSED LOANS IN THE EUROPEAN, JAPANESE , US REAL ESTATE PROPERTY MARKETS
The client will deploy its capital to purchase existing debt in need of restructuring, providing junior debt and preferred equity for new transactions as well as restructuring existing loans on behalf of both borrowers and lenders. The client has access to a substantial amount of capital & is open to discuss with lenders to help maximize value in their loan portfolios. The company will invest with its partners assuming majority stakes. Target equity investments per deal undertaken by the firm and its partners would be €20 million and plus. Direct private debt investments directly into the debt of selected operating companies, typically together with the management of the company.
Secondary investments - will purchase single or portfolios of operating companies on the secondary market. The investor offers other market participants an exit possibility in a market which is highly liquidity-constrained. Primary investments in newly established private debt partnerships where underlying portfolio assets are not known as of the time of investment. Real estate debt, offering attractive yields with manageable credit risk. The investment strategy is based on institutional-quality real estate, prudent use of leverage and a concentrated/value-based investing framework. Primary areas of investment include: Mezzanine debt tranches that yield attractive risk-adjusted leveraged returns. Recapitalization opportunities involving highly-valued assets financed with excessive leverage will require restructuring or recapitalization. Distressed Investments An expected rise in commercial mortgage delinquencies will likely create opportunities to invest in debt instruments on a discounted basis. Listed Equity and Debt Securities Investments in public debt securities based on fundamental value-oriented research. Preferred Equity Investments in preferred equity investments associated with the acquisition, development and recapitalization of real estate opportunities.
INVESTMENT CRITERIA EU, FEDERAL REPUBLIC OF GERMANY, TURKEY, MIDDLE EAST
Portfolio
Investment Size
per Property(€ mln; gross)
Risk Profile Product Type Geographic Foucus Global Open Ended Fund acc. to German Inv 50 - 100
Core Office, retail, logistics, hotel Global / Pan European European Open Ended Fund 20-100
Core plus Retail, office, logistics Europe European Emerging Economies Closed End Fund 20-50
Mainly developmets Residential, office, retail, (logistics), (hotel) Mainly Turkey; second priority (up to 20%): other European emerging countries (Russia and Ukraine can be opted out by investors in the new structure) Pan-European Retail Funs acc. to German Inv 30
Core Retail Parks Europe & Switzerland Global German acc. to German Inv 30-90
Core Generally: Office, retail, logistics, no hotel, no cinema, no industrial Global Pan-European High Income Fund acc. to German Inv 25-50
Core plus Target: office, retail, logistics/industrial Pan-European with focus on Germany; Scandinavia , UK, France, South-Europe, Benelux, Central Europe, Central Europe, Austria/CH, Italy Pan-European Fund (Sha'riah compliant) 50-100
Value added Office, retail France (Paris), Germany, Spain, Luxembourg Fund focused on Turkey, Middle East, and North Africa (mainly developments, Shari'ah compliant) >20
Opportunistic Retail, residential, and office All primary real estate sub-sectors. Prime locations in Turkey, Middle East, and North Africa European Joint Venture Fund 20-35 per JV
Value added Possibly niche (excluding hotel and self storage). Western Europe European Mezzanine Fund 5-20 per mezzanine investment
Core plus/Value added Office, retail, warehouse/industrial UK, Germany, <15% other Western Europe Separate Account investing in London and Paris only 20-80
Core Office, retail UK (London Mayfair), France (CBD Paris)
