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ca presentation 2015 June

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Page 1: ca presentation 2015 June
Page 2: ca presentation 2015 June

Mission Statement:To bring opportunities that provide ‘Wealth Protection & Income Generation’ for our partners.

We do this by:Investing in Income Generating property which has potential for Capital Appreciation in the USA. Usually Multi Family Homes. The number of units within a residence can vary from a few dozen to hundreds.

In particular we look for:Value add opportunities in tertiary markets overlooked by REITs and provide some barriers or limitations to new product coming to market

Overview

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Who are weOur major shareholder is Triangle.co.uk.

•2 Billion USD of Residential and Commercial Real-estate under management in Europe

•1 Billion USD of Hospitality Globally.

•Established 20 years.

Capital Assured:

HQ in Miami, Brickell: Avenue for Sourcing & ManagementLondon, Cavendish Square : Back Office & Analytics:Dubai, Boulevard Plaza: Raising Finance & Investor Service

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Our 11 rules of investmentWe find Multi Family investment opportunities that produce a reliable income with the likely hood of Capital Appreciation. We do by following these 10 rules:

1.Focus on buying below replacement properties 2.With opportunities to increase rents3.Locations and areas that are of a good standard 4.All new purchases must provide positive cash flow from closing date. 5.Invest only for cash flow not appreciation. 6.We do not assume we can manage the property better than the previously.7.Once we have hit or exceeded our Value Ad Target we exit (3-5 years)8.Never over leverage a good piece of real estate. 9.We like to only buy in markets where there are barriers to entry 10.Location is key: High employment centers, proximity to amenities, visibility and good access.11. Multi Family Homes with occupancy above 90%

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Why MFH in USA?Same property net operating income (“NOI”) projected above long-term trend for next several years. There is a strong demand from:

• Growing population with high likelyhood to rent• Large share of jobs going to the 20-34 age cohort• Pent-up demand from young adults living at home or with roommates• Homeownership rate declining steadily and negative sentiment toward home ownership• New supply still being met by strong demand

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Negative Sentiment to Home Ownership

• Many people choosing to rent rather than buy• Move-out rates from apartment residents purchasing homes have declined

dramatically (23% at peak vs. 14% in 2014 for Camden’s portfolio)• Strong credit scores and significant down payments now required by• Mortgage lenders• Young adults carrying significant amount of student debt

Page 7: ca presentation 2015 June

Manageable Levels of Supply• Multifamily starts to peak in early 2015 then expected to begin to decline• Rising construction costs and interest rates make future development starts more

challenging• Single family rentals don’t compete with well-located, amenity-rich apartment

homes

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Where are the best opportunities?

Page 9: ca presentation 2015 June

Texas

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Why Houston- The window of Opportunity

• Prices have not reached 2007-8 levels like in Florida.

• 4th largest city in the 3rd largest State • Fastest Growing population center in Texas• Number #1 for jobs in Texas • Tax Free State • Prices below build cost. This is Key!

Page 11: ca presentation 2015 June

The Deal Overview • 362 income generating units in Houston built 1982• After 11.6m USD bit accepted• NOI 1.4m with Value add to 1.7m with in 12 months.

Gross Rent 2.9m• Finance Approved • 9% Rental return with 4% Annual Capital

Appreciation expected. • 3.5 year return goal 100% • 3.5 year upside 200%

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Located near Airport & Major employment area

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• Exceptional location North of Houston in close proximity to 2.5 million Sq ft of office developments and 6.5m square feet of industrial complex. 14,000 next Exxon Mobil employees coming to the area.

• Excellent Value add opportunity with 36 units to be refurbished at 10k per unit to increase yield 10% before even increasing rent

• 10 miles from International Airport, 11th busiest airport in the world. Plenty of employment

• 3 miles from Greenpoint District with 66k employees• 2014 Houston employment growth of 120k jobs

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Location

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Property Entrance

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Capital required 4.5m USD to closeAsset & Property Management 8.5% of rentWe charge 20% of upside on exit in 3-5 yearsNet to investor 80%-180% in 3.5 years in a safe and

secure investment Extremely limited downside with non recourse loan

in LLC’s Audited and structured by KPMG Managed by Bridge Group

Page 20: ca presentation 2015 June

Thank You!Thank You!


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