The document discusses the marketing of real estate investments. It begins with an introduction to publicly and privately held commercial real estate, as well as an international perspective. It then presents a case study of Falcon Real Estate Investment Company and their chief marketing officer. The document concludes by discussing traditional and alternative global asset classes in real estate and how real estate investing has evolved with private equity models.
REIT preferred stocks provide an alternative source of income with several potential benefits:
1) They offer attractive dividends that are generally well-covered by the cash flows of underlying REIT issuers.
2) Historically, REIT preferreds have low correlations to other asset classes, offering portfolio diversification.
3) Currently, REIT preferreds yields are near historic highs compared to 10-year Treasury yields, suggesting the potential for outsized returns if spreads revert back toward historical averages.
DeA Capital is De Agostini Group's vehicle for alternative investments. It has two lines of business: private equity investments including direct investments and indirect investments through funds; and alternative asset management with over €10 billion under management in real estate and private equity funds. Notable direct investments include stakes in Generale de Santé, the largest private healthcare operator in France, and Migros Turk, the largest supermarket chain in Turkey. DeA Capital also invests in funds like the IDeA Opportunity Fund focused on Italian mid-market companies.
Private company secondary markets january 2012 - markum breakfastJason Jones
The private company secondary market has grown significantly in recent years as more companies stay private longer. This market allows investors to purchase shares of private companies from existing shareholders. The growth of this market is helping to address the widening "IPO gap" as companies mature before going public. Secondary investors provide liquidity to shareholders of late-stage private companies and help relieve pressure for companies who face constraints on the traditional IPO path. The legal framework around private share trading is also developing to further support this growing market.
Private company secondary markets october 2011Jason Jones
This document discusses private company secondary markets and how they provide liquidity solutions. It notes that the time to exit for companies has increased, leading to a widening "IPO gap." As a result, private secondary exchanges have emerged as a third exit alternative alongside IPO and M&A. The document also predicts that more mature companies will enter public markets, SEC regulation will strengthen private markets, and companies will increasingly adopt liquidity programs to provide shareholders with exits.
Prof. Dr. Roger Dassen RA, Global Managing Director Clients, Services and Talent Deloitte
Touche Tohmatsu Limited - The Government Balance Sheet Crisis
Private company secondary markets - November 2011Jason Jones
The document discusses private company secondary markets and how they provide liquidity solutions for shareholders of high-growth private companies. It notes that the time to exit for these companies via IPO has increased, leaving a gap that secondary markets have emerged to address. It provides an overview of how secondary transactions work, the various structures, characteristics of secondary investors, and how the legal framework around private company shares is developing to support these markets.
http://www.MinneapolisStPaulHomes.com This RE/MAX brochure explains some of the tips and techniques to successfully purchase minneapolis rental and sairnt paul rental properties and well as rental real estate throughout Minnesota.
REIT preferred stocks provide an alternative source of income with several potential benefits:
1) They offer attractive dividends that are generally well-covered by the cash flows of underlying REIT issuers.
2) Historically, REIT preferreds have low correlations to other asset classes, offering portfolio diversification.
3) Currently, REIT preferreds yields are near historic highs compared to 10-year Treasury yields, suggesting the potential for outsized returns if spreads revert back toward historical averages.
DeA Capital is De Agostini Group's vehicle for alternative investments. It has two lines of business: private equity investments including direct investments and indirect investments through funds; and alternative asset management with over €10 billion under management in real estate and private equity funds. Notable direct investments include stakes in Generale de Santé, the largest private healthcare operator in France, and Migros Turk, the largest supermarket chain in Turkey. DeA Capital also invests in funds like the IDeA Opportunity Fund focused on Italian mid-market companies.
Private company secondary markets january 2012 - markum breakfastJason Jones
The private company secondary market has grown significantly in recent years as more companies stay private longer. This market allows investors to purchase shares of private companies from existing shareholders. The growth of this market is helping to address the widening "IPO gap" as companies mature before going public. Secondary investors provide liquidity to shareholders of late-stage private companies and help relieve pressure for companies who face constraints on the traditional IPO path. The legal framework around private share trading is also developing to further support this growing market.
Private company secondary markets october 2011Jason Jones
This document discusses private company secondary markets and how they provide liquidity solutions. It notes that the time to exit for companies has increased, leading to a widening "IPO gap." As a result, private secondary exchanges have emerged as a third exit alternative alongside IPO and M&A. The document also predicts that more mature companies will enter public markets, SEC regulation will strengthen private markets, and companies will increasingly adopt liquidity programs to provide shareholders with exits.
Prof. Dr. Roger Dassen RA, Global Managing Director Clients, Services and Talent Deloitte
Touche Tohmatsu Limited - The Government Balance Sheet Crisis
Private company secondary markets - November 2011Jason Jones
The document discusses private company secondary markets and how they provide liquidity solutions for shareholders of high-growth private companies. It notes that the time to exit for these companies via IPO has increased, leaving a gap that secondary markets have emerged to address. It provides an overview of how secondary transactions work, the various structures, characteristics of secondary investors, and how the legal framework around private company shares is developing to support these markets.
http://www.MinneapolisStPaulHomes.com This RE/MAX brochure explains some of the tips and techniques to successfully purchase minneapolis rental and sairnt paul rental properties and well as rental real estate throughout Minnesota.
Basel iii a comprehensive regulatory response february 2011Maan Barazi
dr Amine Awad in the UAB conference - february 2011 presents views on Reasons behind the International Financial Crisis
Major Components of Basel III
Lebanon’s Action Plan to fully implement Basel III
Funding Your Social Enterprise: Approaches & Resources for NonprofitsMargaret Stangl
The document discusses various approaches and funding resources for social enterprises and nonprofits, including loans from community development financial institutions, program-related investments from foundations, and mission-related investments that align with a foundation's goals. It provides examples of specific social enterprises, their models and financing approaches. The webinar addresses common questions around accessing capital through grants, debt, and equity.
Financial Advisors International is committed to bringing wealth management products and strategies traditionally reserved for the wealthy to more mainstream clients. FAI has strategic partnerships with companies offering diversified investment portfolios. It aims to help clients take charge of their financial future through products like indexed life insurance, annuities, and active money management strategies. FAI and its partners provide a one-stop shop for clients seeking to grow and protect their assets.
THE GOOD, THE BAD AND THE UGLY - EMERGING MODELS OF DELIVERING REGENERATION: ...Cathedral Group Plc
This document summarizes different models for regeneration delivery including public-private partnerships. It discusses models such as LABVs, LIBVs, co-investment funds, ESCOs/MUSCOs, and tax increment financing. The key points are that different structures are needed for different situations, what works well for some may not for others, public-private risk sharing is essential, and just because a model is complex does not mean it is not viable. The document provides overviews of the various models and their benefits and drawbacks at a high level.
This document summarizes Jeffrey Peek's remarks from a Lehman Brothers Financial Services Conference on September 8, 2008. Peek discusses CIT's transition to a global commercial finance company, securing over $11 billion in liquidity, continued funding progress in Q3, reducing high risk exposures, and initiatives to enhance profitability. The future vision is outlined as a global commercial finance company focused on the middle market with a balanced funding model and strong capital levels and ratings.
This document discusses the solar future in Belgium and infrastructure investment opportunities related to solar power. It covers the following key points:
- DG Infra+ and DG Infra Yield are infrastructure investment funds totaling €250 million managed by GIMV and Dexia that invest in areas like renewable energy, transport, water and telecom.
- PV installations are capital intensive and not a core asset for most industrial companies, so they are often developed and financed through separate dedicated structures.
- Investing in PV installations involves various risks across development, operation and dismantling phases that must be carefully allocated and managed to achieve appropriate risk-adjusted returns for investors.
- The solar future in Belgium will depend on
The document discusses how development credit programs can help unlock private financing for clean energy projects in Asia. It provides examples of how USAID's Development Credit Authority uses loan guarantees and other credit support mechanisms to catalyze investment in renewable energy, energy efficiency, and other sectors. By mitigating risks for lenders, credit guarantees can help address capital constraints and accelerate the transition to sustainable energy.
MFI financing and currency risk: current mitigants and innovative instrumentsGuadalupe de la Mata
This document discusses mechanisms to mitigate foreign exchange and currency risk for microfinance institutions (MFIs). It outlines traditional options used by donors and MFIs, such as lending in local currency, matching foreign currency liabilities to assets, and creating foreign currency reserves. It also explores other options like improving MFI access to local financial and capital markets through loan guarantees and bond guarantees. Finally, it discusses tapping international capital markets through private equity funds that invest in MFIs in local currency, and microfinance debt funds that provide loans to MFIs across currencies to diversify risk.
GrowVC Transatlantic Economic Council 2012 12-03Grow VC Group
The document summarizes a presentation given by Jouko Ahvenainen on Transatlantic SME Finance at the White House Conference Center in Washington DC on December 3, 2012. The presentation discusses crowdfunding and the JOBS Act, which aims to encourage companies to raise capital through new exemptions and provisions. It also covers emerging solutions for different funding stages, the need for regulation, and conclusions about crowdfunding creating more effective funding markets.
FUNDING PPP PROJECTS IN THE CURRENT CLIMATE: Amelia Henning, Royal Bank of Ca...Cathedral Group Plc
Amelia Henning, Vice President at Royal Bank of Canada, discusses funding challenges for public-private partnership (PPP) projects in the current economic climate. While conditions are difficult with high borrowing costs and policy hostility, she argues opportunities remain through decentralization, shaping new policy, and attracting long-term institutional investment. PPPs can succeed by ensuring stable long-term cash flows, strong sponsors, and sensible risk allocation. The right funding sources match the risk profile of construction and operational phases. Well-structured regeneration projects should be fundable if they meet investor needs.
1) Real estate has long been an established investment class, providing returns from rental income and capital appreciation. However, it is not a liquid investment and requires careful timing to generate returns.
2) The article analyzes various indicators to determine if real estate is a wise investment currently, such as price-to-rent ratios, global real estate trends, and mortgage default rates.
3) While real estate prices often rebound after banking crises, on average it takes 6 years for full recovery. For long-term investors, real estate can still generate positive returns despite short-term volatility.
The document proposes ideas to revolutionize online microfinance platforms by turning traditional donors into true social investors. It discusses issues with current platforms such as lack of transparency and disconnecting donors from projects. The first idea proposes using video pitches by entrepreneurs to give investors a better sense of businesses. The second idea creates an online "stock market" where shares of small businesses are traded competitively using points rather than real ownership. The third idea facilitates direct one-to-one business relationships between developed and developing world companies to ensure prudent investment and business support.
AIG Residential Mortgage Presentation - August 9, 2007finance2
This document provides an overview of AIG's involvement in the US residential mortgage market through various segments including originating mortgages, providing mortgage insurance, and investing in mortgage-backed securities. It discusses two of AIG's subsidiaries, American General Finance and United Guaranty, and how they operate within the mortgage market. American General Finance originates mortgages and United Guaranty provides mortgage insurance. The document also outlines AIG's role in investing in mortgage securities and providing credit default protection.
CHARLAS DIVULGATIVAS SOBRE TERAPIA OCUPACIONALCristina Alonso
Este documento presenta una serie de cuatro charlas divulgativas sobre terapia ocupacional que tendrán lugar los jueves de 19:00 a 21:00 horas entre el 28 de febrero y el 21 de marzo de 2013 en el Aula no 4 de la EUCS en Zaragoza. Cada charla estará a cargo de un ponente diferente y tratará sobre temas relacionados con la terapia ocupacional neurológica, nuevos modelos emergentes en la terapia ocupacional y el uso de la terapia ocupacional en Internet y las re
This document provides information about Squarecap, an education technology company founded in 2013. Squarecap's mission is to help students succeed in every course and graduate on time using a personalized learning application. The application is designed to improve student outcomes through features like homework, quizzes, exams, attendance tracking, discussions, and personalized analytics. Squarecap has seen growth from 300 students in 2014 to over 5,000 students currently. It aims to compete with other edtech companies like Top Hat and Echo 360 by offering an intuitive interface, scalability for large classes, content integration, and affordable pricing.
Teachers' Forum Report Compiled by Lillian NyachengLillian Nyacheng
The document summarizes the key discussions and outcomes of the first Teachers' Forum held in Uganda. It addressed the role of school leadership in improving learning outcomes and positioning teachers as dual career professionals. On leadership, it emphasized setting high expectations, modeling learning, and continuous professional development. For teachers, it encouraged utilizing other talents to generate income, provided it does not conflict with teaching duties. Overall, the forum aimed to bring together education stakeholders to share best practices and find solutions to improve the teaching profession and education sector in Uganda.
Dezentrale Organisation, Chaos-Management und Jugendarbeit passen bestens zusammen. Was das für die Praxis der Jugendarbeit und für das Leben von Kindern und Jugendlichen bedeuten kann und was der Seestern und die Spinne damit zu tun haben, präsentiert Hans Schwab am Beispiel des Landesjugendring Niedersachsen e.V. Anhand von 10 Regeln für ein neues Denken werden die revolutionären Potentiale und Möglichkeiten einer emanzipatorischen Arbeitspraxis sichtbar.
Basel iii a comprehensive regulatory response february 2011Maan Barazi
dr Amine Awad in the UAB conference - february 2011 presents views on Reasons behind the International Financial Crisis
Major Components of Basel III
Lebanon’s Action Plan to fully implement Basel III
Funding Your Social Enterprise: Approaches & Resources for NonprofitsMargaret Stangl
The document discusses various approaches and funding resources for social enterprises and nonprofits, including loans from community development financial institutions, program-related investments from foundations, and mission-related investments that align with a foundation's goals. It provides examples of specific social enterprises, their models and financing approaches. The webinar addresses common questions around accessing capital through grants, debt, and equity.
Financial Advisors International is committed to bringing wealth management products and strategies traditionally reserved for the wealthy to more mainstream clients. FAI has strategic partnerships with companies offering diversified investment portfolios. It aims to help clients take charge of their financial future through products like indexed life insurance, annuities, and active money management strategies. FAI and its partners provide a one-stop shop for clients seeking to grow and protect their assets.
THE GOOD, THE BAD AND THE UGLY - EMERGING MODELS OF DELIVERING REGENERATION: ...Cathedral Group Plc
This document summarizes different models for regeneration delivery including public-private partnerships. It discusses models such as LABVs, LIBVs, co-investment funds, ESCOs/MUSCOs, and tax increment financing. The key points are that different structures are needed for different situations, what works well for some may not for others, public-private risk sharing is essential, and just because a model is complex does not mean it is not viable. The document provides overviews of the various models and their benefits and drawbacks at a high level.
This document summarizes Jeffrey Peek's remarks from a Lehman Brothers Financial Services Conference on September 8, 2008. Peek discusses CIT's transition to a global commercial finance company, securing over $11 billion in liquidity, continued funding progress in Q3, reducing high risk exposures, and initiatives to enhance profitability. The future vision is outlined as a global commercial finance company focused on the middle market with a balanced funding model and strong capital levels and ratings.
This document discusses the solar future in Belgium and infrastructure investment opportunities related to solar power. It covers the following key points:
- DG Infra+ and DG Infra Yield are infrastructure investment funds totaling €250 million managed by GIMV and Dexia that invest in areas like renewable energy, transport, water and telecom.
- PV installations are capital intensive and not a core asset for most industrial companies, so they are often developed and financed through separate dedicated structures.
- Investing in PV installations involves various risks across development, operation and dismantling phases that must be carefully allocated and managed to achieve appropriate risk-adjusted returns for investors.
- The solar future in Belgium will depend on
The document discusses how development credit programs can help unlock private financing for clean energy projects in Asia. It provides examples of how USAID's Development Credit Authority uses loan guarantees and other credit support mechanisms to catalyze investment in renewable energy, energy efficiency, and other sectors. By mitigating risks for lenders, credit guarantees can help address capital constraints and accelerate the transition to sustainable energy.
MFI financing and currency risk: current mitigants and innovative instrumentsGuadalupe de la Mata
This document discusses mechanisms to mitigate foreign exchange and currency risk for microfinance institutions (MFIs). It outlines traditional options used by donors and MFIs, such as lending in local currency, matching foreign currency liabilities to assets, and creating foreign currency reserves. It also explores other options like improving MFI access to local financial and capital markets through loan guarantees and bond guarantees. Finally, it discusses tapping international capital markets through private equity funds that invest in MFIs in local currency, and microfinance debt funds that provide loans to MFIs across currencies to diversify risk.
GrowVC Transatlantic Economic Council 2012 12-03Grow VC Group
The document summarizes a presentation given by Jouko Ahvenainen on Transatlantic SME Finance at the White House Conference Center in Washington DC on December 3, 2012. The presentation discusses crowdfunding and the JOBS Act, which aims to encourage companies to raise capital through new exemptions and provisions. It also covers emerging solutions for different funding stages, the need for regulation, and conclusions about crowdfunding creating more effective funding markets.
FUNDING PPP PROJECTS IN THE CURRENT CLIMATE: Amelia Henning, Royal Bank of Ca...Cathedral Group Plc
Amelia Henning, Vice President at Royal Bank of Canada, discusses funding challenges for public-private partnership (PPP) projects in the current economic climate. While conditions are difficult with high borrowing costs and policy hostility, she argues opportunities remain through decentralization, shaping new policy, and attracting long-term institutional investment. PPPs can succeed by ensuring stable long-term cash flows, strong sponsors, and sensible risk allocation. The right funding sources match the risk profile of construction and operational phases. Well-structured regeneration projects should be fundable if they meet investor needs.
1) Real estate has long been an established investment class, providing returns from rental income and capital appreciation. However, it is not a liquid investment and requires careful timing to generate returns.
2) The article analyzes various indicators to determine if real estate is a wise investment currently, such as price-to-rent ratios, global real estate trends, and mortgage default rates.
3) While real estate prices often rebound after banking crises, on average it takes 6 years for full recovery. For long-term investors, real estate can still generate positive returns despite short-term volatility.
The document proposes ideas to revolutionize online microfinance platforms by turning traditional donors into true social investors. It discusses issues with current platforms such as lack of transparency and disconnecting donors from projects. The first idea proposes using video pitches by entrepreneurs to give investors a better sense of businesses. The second idea creates an online "stock market" where shares of small businesses are traded competitively using points rather than real ownership. The third idea facilitates direct one-to-one business relationships between developed and developing world companies to ensure prudent investment and business support.
AIG Residential Mortgage Presentation - August 9, 2007finance2
This document provides an overview of AIG's involvement in the US residential mortgage market through various segments including originating mortgages, providing mortgage insurance, and investing in mortgage-backed securities. It discusses two of AIG's subsidiaries, American General Finance and United Guaranty, and how they operate within the mortgage market. American General Finance originates mortgages and United Guaranty provides mortgage insurance. The document also outlines AIG's role in investing in mortgage securities and providing credit default protection.
CHARLAS DIVULGATIVAS SOBRE TERAPIA OCUPACIONALCristina Alonso
Este documento presenta una serie de cuatro charlas divulgativas sobre terapia ocupacional que tendrán lugar los jueves de 19:00 a 21:00 horas entre el 28 de febrero y el 21 de marzo de 2013 en el Aula no 4 de la EUCS en Zaragoza. Cada charla estará a cargo de un ponente diferente y tratará sobre temas relacionados con la terapia ocupacional neurológica, nuevos modelos emergentes en la terapia ocupacional y el uso de la terapia ocupacional en Internet y las re
This document provides information about Squarecap, an education technology company founded in 2013. Squarecap's mission is to help students succeed in every course and graduate on time using a personalized learning application. The application is designed to improve student outcomes through features like homework, quizzes, exams, attendance tracking, discussions, and personalized analytics. Squarecap has seen growth from 300 students in 2014 to over 5,000 students currently. It aims to compete with other edtech companies like Top Hat and Echo 360 by offering an intuitive interface, scalability for large classes, content integration, and affordable pricing.
Teachers' Forum Report Compiled by Lillian NyachengLillian Nyacheng
The document summarizes the key discussions and outcomes of the first Teachers' Forum held in Uganda. It addressed the role of school leadership in improving learning outcomes and positioning teachers as dual career professionals. On leadership, it emphasized setting high expectations, modeling learning, and continuous professional development. For teachers, it encouraged utilizing other talents to generate income, provided it does not conflict with teaching duties. Overall, the forum aimed to bring together education stakeholders to share best practices and find solutions to improve the teaching profession and education sector in Uganda.
Dezentrale Organisation, Chaos-Management und Jugendarbeit passen bestens zusammen. Was das für die Praxis der Jugendarbeit und für das Leben von Kindern und Jugendlichen bedeuten kann und was der Seestern und die Spinne damit zu tun haben, präsentiert Hans Schwab am Beispiel des Landesjugendring Niedersachsen e.V. Anhand von 10 Regeln für ein neues Denken werden die revolutionären Potentiale und Möglichkeiten einer emanzipatorischen Arbeitspraxis sichtbar.
Este currículum vitae resume la información personal, experiencia laboral, educación y capacidades de José Antonio Vidal Segovia. Detalla sus trabajos previos en el sector de seguros, supermercados y restauración, así como su educación en administración de empresas. Además, proporciona detalles sobre sus habilidades con idiomas, organización, informática y música.
Bibliografia:
Bonfil M. Sida el riesgo es real. ¿cómo ves?. [serie en Internet]. [citado dic. 2014]. Disponible en:
http://www.comoves.unam.mx/numeros/articulo/102/sida-el-riesgo-es-real
Este documento presenta una sesión sobre pruebas de hipótesis de una y dos poblaciones. Explica los diferentes tipos de pruebas de hipótesis, como pruebas unilaterales, bilaterales y de cola. También cubre cómo calcular valores z, valores p y tomar decisiones sobre hipótesis nulas basadas en niveles de significancia. Por último, resume los pasos para realizar pruebas estadísticas y aplica los conceptos a ejemplos numéricos.
A senhora chinesa tinha dois vasos, um rachado e outro perfeito. Enquanto o vaso perfeito chegava em casa cheio de água, o vaso rachado chegava meio vazio. No entanto, a senhora plantou flores ao lado do caminho regadas pelo vaso rachado, flores essas que enfeitavam sua mesa.
The document discusses how safe sharing of health information can transform New Zealand's health system. It argues that safe sharing increases productivity, safety, and patient experience. Three emerging strategies - the Broadband Investment Fund, Primary Healthcare Implementation Plan, and consumer-driven healthcare - will accelerate progress towards safe sharing. The ultimate goal is a fully interoperable health system based on open standards that allows for flexibility and innovation while maintaining safety and integrity of services. All stakeholders, including providers, vendors, IT professionals, and the public, have a role to play in achieving this goal.
La casa pasiva o casa solar pasiva es un concepto que se popularizó en la década de 1980 para minimizar el uso de sistemas de calefacción y refrigeración aprovechando las condiciones climáticas y de asoleamiento de cada sitio. Si bien la metodología de diseño se basa en el clima local, los ejemplos originales provienen de casas tradicionales estadounidenses, lo que no siempre es aplicable a otros países. Los sistemas solares pasivos captan y almacenan el calor solar a través de procesos fís
Este documento presenta una biografía de Judith Orozco. Detalla su nombre, edad, lugar de residencia, gustos como escuchar música y leer, y sus estudios actuales de comunicación. También incluye secciones sobre su mascota Rayo, sus comidas favoritas como tacos dorados y pambazos, golosinas preferidas, video y libros favoritos, artistas musicales que le gustan, su proyecto de vida y una lista de enlaces web.
Effective Sequence of events of a meeting Designed by Deanna SenicaDeanna Senica
The document outlines the sequence of events for planning and holding a meeting, including electing a chairperson, checking attendance numbers, sending meeting invitations, assigning roles, choosing a location, setting up equipment, finalizing seating arrangements, creating an agenda, sending reminders, taking notes during the meeting on discussions and action items, following up on previous meetings, and distributing post-meeting notes.
El resumen describe los problemas que enfrenta una empresa de muebles llamada Muebles Finos S.A., incluyendo quejas de clientes sobre daños y entregas incorrectas, aumento en la tasa de rotura de stock, y sobreacumulación de inventario. Se recomienda mejorar la gestión de la demanda, las relaciones con los clientes, y la gestión de la logística a través del enfoque de gestión de la cadena de suministro para abordar estos problemas de manera integral y eficiente.
The Jeep Store is a proud Jeep dealership in NJ. Our sales associates and team members are always available to assist past and present customers with any and all of their needs, even if that means a service manual.
Here you will find the supplemental manual for the Uconnect 5.0
Come take a look at some of the specials we are offering, for the lowest payments in all of NJ- visit www.thejeepstore.com
This document provides practice materials for the TOEIC listening and reading exam, including:
- A listening exercise on question-response questions and error recognition
- A reading exercise on text completion and error recognition questions involving completing sentences and identifying incorrect parts of sentences
- Background information on gerunds and infinitives and verbs that take gerund or infinitive forms
This presentation for those who want to become a freelancer. Recently "Freelancing" is a hot topic in the job market. The lack of knowledge about freelancer stops us from reaching our goal. I am trying to give them the general information about freelancing. So that people can start their freelancing career with proper knowledge.
Aprende a dibujar un método garantizado - Betty EdwarsLaura Blues
Este documento presenta un método para enseñar a dibujar utilizando las funciones del hemisferio derecho del cerebro. La autora, Betty Edwards, desarrolló este método tras observar que aunque el dibujo le resultaba fácil a ella, la mayoría de sus alumnos tenían dificultades. Los ejercicios en el libro están diseñados para cambiar la forma de procesar visualmente la información, pasando de un modo analítico al modo holístico del hemisferio derecho. De esta forma, cualquiera puede aprender a
Private company secondary markets october 2011Jason Jones
This document discusses private company secondary markets and how they provide liquidity solutions. It notes that the time to exit for companies has increased, leading to a widening "IPO gap." As a result, private secondary exchanges have emerged as a third exit alternative alongside IPO and M&A. The document also predicts that more mature companies will enter public markets, regulation will strengthen private markets, and companies will increasingly adopt liquidity programs to provide shareholders with exits.
NorthStar Realty Finance is a commercial real estate finance company with $6.8 billion of assets under management across three business lines: commercial real estate lending, real estate securities investment/management, and net leased corporate/healthcare properties. The company has a seasoned management team with extensive experience and a focus on credit risk management. Key highlights include a strong liquidity position, minimal near-term debt maturities, and consistent dividend payments since going public. NorthStar's priorities are liquidity/capital retention, intensive credit monitoring, capital raising through alternative sources, and opportunistic investments.
NorthStar Realty Finance is a commercial real estate finance company with three primary business lines: commercial real estate lending, real estate securities investment and management, and net leased corporate and healthcare properties. It has $6.8 billion of commercial real estate loans, securities, and properties under management. NorthStar focuses on senior loans, direct origination, and long-term capital raising. It has a seasoned management team with extensive experience and a strong credit track record through economic cycles. NorthStar prioritizes liquidity management, capital retention, and intensive credit risk management during the difficult market environment.
This document provides an overview of a two-day seminar on decoding financial statements and investing in times of uncertainty. Day one covers financial ratios for measuring liquidity, profitability, and leverage. It also explains the profitability model for evaluating companies. Day two discusses sources of macroeconomic uncertainty, historical perspectives on market returns and risk, and how global demographics will influence future investment returns and economic growth. The seminar aims to help investors understand company and market fundamentals in order to make informed investment decisions.
This document is an investor presentation by Peak Corporate Network that discusses the company's history, opportunities, and management. Peak focuses on opportunistically acquiring distressed real estate assets like non-performing loans, failed condo projects, and REO properties from the economic crisis. It has experience successfully acquiring, financing, developing, and exiting various commercial and residential real estate investments. The presentation promotes Peak's infrastructure, experience, and strategy for capitalizing on rare investment opportunities in today's real estate markets.
Peak Capital Group, LLC Peak Capital Group, LLC
123 Main Street, Suite 600 456 Peachtree Lane, Suite 300
Los Angeles, CA 90001 Atlanta, GA 30309
Tel: (310) 555-1212 Tel: (404) 555-1212
Fax: (310) 555-1213 Fax: (404) 555-1213
Gil Priel, Founder & CEO Eli Tene, Founder & President
Email: gpriel@peakcapitalgroup.com Email: etene@peakcapitalgroup.com
Website: www.peakcapitalgroup.com Website: www.peakcapitalgroup.com
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Thank you for your
Net lease properties remain an attractive investment for those seeking predictable returns, according to industry leaders. While some question if high investor demand could lead to an overheated market, experts believe the sector will remain stable given targeted acquisition strategies and diverse property types and locations. Leaders from Equity Global Management, Iridium Capital, United Trust Fund and Paragon Real Estate expect continued investor appetite and transaction volume, especially for well-located assets with investment-grade tenants and long-term leases.
The commercial real estate market is recovering gradually with transaction volume up 25% in the second quarter of 2012 compared to the first quarter. However, lending remains cautious with banks focusing on top-quality assets in major markets. Investors are risk averse and concerned about potential issues that could negatively impact property values. Areas of opportunity include increased lending by government programs, REIT acquisitions, retail expansion, and energy benchmarking requirements. Consultants should focus on client education and differentiating themselves through technology to succeed in this uncertain market.
State of the Commercial Real Estate Market Chicago April 2012EDR
The document summarizes 10 key trends in the commercial real estate market and forecasts for 2012. It finds that property transactions are on an upward trajectory, with multifamily attracting the most demand. Commercial mortgage-backed securities are recovering after a dry spell in 2011. Lending from banks, life insurers, and government-backed entities is thawing. Risk aversion increased in 2011 but commercial real estate investment trusts have large war chests for acquisitions. Phase I environmental site assessments increased 7% in 2011 but growth varied significantly by metro area. The forecast anticipates a busy year for commercial real estate with both positive and uncertain forces, including maturing loans, available equity, and gradual increases in lending originations.
This document provides an overview of Deutsche Bank, including:
- It is a global financial company founded in 1870 and headquartered in Germany.
- It has over 100,000 employees with a presence in 75+ countries.
- The company offers corporate and retail banking services through divisions like corporate and investment banking, private banking, and asset management.
- In 2010, Deutsche Bank reported revenues of €28.6 billion and net income of €2.3 billion.
- The company aims to improve its retail operations, focus on client-driven businesses, and expand in developing markets going forward.
Presentation to PCI Investment SeminarAlton Cogert
Getting a Grip on Key Investment Issues discusses several important issues facing investors in today's environment. It summarizes how the financial crisis occurred when subprime mortgages defaulted and structured products unraveled. It then outlines some of the major issues facing investors currently, including uncertain spreads, government spending, inflation concerns, and rating agency scrutiny. The document emphasizes the importance of a consistent investment process and risk management approach. It concludes by asking what the key investment issues are for the reader's company.
The document discusses trends in the global venture capital market from 2009. It provides background on what venture capital is and the types of private equity investments. It then reviews the history of venture capital, tracing its growth from the 1940s to present day. Key periods discussed include the internet boom and bust and the most recent credit crisis. The document also outlines typical venture capital fund structures, sources of funds, investment and exit trends, and how the venture capital market has changed in recent years with decreased fundraising and investment levels.
The World Bank/IFC provides several trade and investment tools to promote private sector engagement in developing markets, including:
1) The Global Trade Finance Program (GTFP) provides guarantees to covering banks for payment risk on trade transactions in emerging markets, helping to provide risk coverage for imports/exports of goods like computers, cotton, and food products.
2) IFC also offers a range of debt, equity, and structured finance products to support private sector projects and expansions in areas like retail operations, payment platforms, and petroleum distribution networks.
3) These tools have supported over $500 million in exports from the US to countries in sectors like infrastructure, agriculture, and manufacturing.
This document provides an overview of cat bonds, which offer an alternative capacity source for natural catastrophe insurance. Cat bonds transfer catastrophe risk to the capital markets through securitization. Since 1997, 141 cat bonds have been issued totaling $27 billion in risk limits. The market started growing significantly after major hurricanes and earthquakes in the 1990s. Investor interest continues to rise due to attractive yields and increased understanding of natural catastrophe risk. Cat bonds and other insurance-linked securities may prove useful for risk management in China and other parts of Asia in the future.
Pre-crisis perspective. Now more than ever it has relevance with the emergence of "Vulture" Hedge Funds (VHF). The VHFs are an important part of the "ecosystem", to achieve a true market equilibrium, unhampered by 'subsidies'.
The document discusses raising capital in Australia post-GFC. It notes that while the financial markets were impacted by the GFC, the effects in Australia were relatively mild. Equity capital markets remained active, with over $100 billion raised in 2009. For early stage businesses, sources of capital include angels investors, accelerator programs, venture capital funds, and corporate venture arms. Recent examples are provided of early stage companies raising seed investments. While capital is available, accessing it requires strong deal flow and matching risk profiles.
This document discusses MetLife's commercial mortgage portfolio. It notes that MetLife originated and holds over $36 billion in commercial mortgages, with about 1,000 loans concentrated in core property types like office and retail. In contrast to securitized loans, MetLife's focus is on sustainable income properties with relatively low leverage, as they originate loans to own rather than to sell. The document compares the current recession to the early 1990s recession, noting lower new supply, vacancies, and delinquency rates heading into the current downturn compared to the early 1990s, putting MetLife's portfolio in a stronger position currently.
Forco is a foreign company that needs venture capital funding to continue growing. An "inbound flip" transaction involves Forco shareholders creating a new US company called Domco and exchanging their Forco shares for Domco shares. Then Domco would own Forco. This structure is more appealing to US investors and allows Forco to access US venture capital markets through the US company Domco. These "flip" transactions can typically be completed quickly and tax-free to restructure the companies.
1. The Marketing of Real Estate
Amaury de Parcevaux
April 8th 2011 Chief Marketing Officer
2. Short Profile on Firm and Speaker
A. Falcon Real Estate Investment Company, LP
• US Commercial Real Estate firm created in 1991 by Howard Hallengren and Jack Miller,
both from JPMChase. Offers comprehensive services to high-net-worth individuals and
institutional investors. 6 US Regional offices in the United States: New York, Washington
D.C., Miami, Chicago, Dallas and San Diego. $ 2 bn AUMs of US commercial real estate.
100% Out-performance vs. its benchmark (NCREIF) in 20 years.
B. Amaury de Parcevaux, Chief Marketing Officer (New York)
• Amaury de Parcevaux is Senior Vice President for Falcon and he is based in New York.
As Chief Marketing Officer, he has overall responsibility for the Global marketing strategy
of Falcon's direct and indirect investments platforms. Mr. de Parcevaux has had over 18
years experience in marketing to high-net-worth individuals, and comes to Falcon from
Morgan Stanley, where he was a First Vice President in the Wealth Management
department. Prior to that, he worked in the Private Banking department of Merrill Lynch, at
Citibank and Deutsche Bank in New York, and at Commerzbank and Deutsche Bank in
Frankfurt. Mr. de Parcevaux graduated in 1988 from the European Business School
(Oestrich-Winkel, Paris and London) with a Master’s Degree in Finance. In addition to
French and English, Mr. de Parcevaux is also fluent in German.
2
5. Traditional Global Asset Classes
A. Traditional
• Money Market
• Bonds (CMBS)
• Stocks (Listed Real Estate Investment Trusts: “REITs”)
B. Alternative
• Private Equity (“Private Equity funds”, “Private REITs” or “Club Deals”)
• Hedge Funds (“Sector Specific”: Real Estate and Macro)
• Structured Products (“Principal Protected” around RE indices or “REITs baskets”)
• Real Estate (Direct investment by one investor in one building or owner-occupied)
• Managed Futures
• Commodities
• Infrastructure
5
6. Traditional Global Real Estate Asset Classes
Private Public
GLOBAL REAL ESTATE
Direct Property Real Estate
Equity
Securities •$ 25 Trillion (50% US)
Investments $ 16 Investment Grade
$ 9 Non-Investment Grade
$ 23 Trillion ($ 10 pure investments)
$ 2 Trillion
•20% vs. Global Stock +
Bond Market Cap.
• 7 times bigger than
Debt
Whole Mortgage Structured Debt Hedge Funds
(CMOs, CLOs etc.)
• 12 times bigger than
Private Equity
6
7. Real Estate Evolves with Private Equity
1. Buyouts PIPE
Purchase of controlling interest Real Estate
Late Stage
with substantial borrowed capital Private/Public
Distress Mature Stage Company
Private/Public
Mezzanine Company
Growth Stage
Private/Public
Industry Company
Convertible Debt
Mezzanine Stage IPO Public/Private Debt
Private
Company Follow-on Offerings
Venture Stage
Private Traditional Bank Loans
Company
High Yield Debt & Equity
2. Venture Capital Funding
Focuses on investing in companies
with high growth rates
7
9. Positioning Debt/Equity vs. Public/Private
Risk / Return of Real Estate Investment Strategies
Equity
Opportunistic
Value-Added
Long/Short
Public Equity
Debt Core Property
Public Debt
Whole Mortgage
Risk Perception
Source: Fund Evaluation Group and Falcon Asset Management
9
10. Pre-2008 Crisis Headlines?
“US Housing Going down”
April 26th 2007
“ Foreign Real-Estate Funds Boom Firms Unveil
Scores of New Plays, Spurred by Strong Returns
and Growth in Overseas REITs”. July 7, 2007
“Euro soars to new high against U.S. dollar”
July 10, 2007
“Subprime poor practice risks
turning to malpractice”
July 4 2007
10
12. Asset Allocation and Expected Return: 1
Security Selection Market Timing Other Factors
4.6% 1.8% 2.1%
Asset Allocation
91.5%
• 91.5% of long-term total account performance including Stocks, Bonds, Money Markets
resulted from asset allocation decisions (statistically tested over the past 20 years)
• Mitigate the necessity of secondary market - like in REITs
Source: Ibbotson Associates, Inc.
12
13. Risk Adjusted Returns (+ Standard Deviation): 2
HIGH
Private
Equity
Global
Real Estate
Hedge
Return %
MEDIUM Funds
Oil
Global Commodities
Stocks
Global Bonds
Gold
LOW Global
Money Markets
LOW MEDIUM HIGH
Risk % Source: 1995—2005 Source: BHF-BANK
13
14. US Public vs. US Private Real Estate Returns
US Public RE Benchmark (50% leveraged) vs. Private Benchmark (Unleveraged)
NAREIT NCREIF
Source: Falcon /NCREIF & NAREIT/ Columbia Business School
14
15. REIT NAV Premium vs. Underlying Assets
40
%
30% Long-term Average = 6.6%
20%
10%
0%
-10%
-20%
-
30%
Source: Green Street Advisors, Current as of May 2007
15
16. When Real Estate > Stock Market Volatility
S&P 500 120 Day Volatility
REITs 120 Day Volatility
1994 1996 1998 2000 2002 2004 2006 2008
Source: Bloomberg / RMS & SPX 120 Day Return Volatility
16
17. Correlation Coefficients (+ covariance): 3
Falcon Performance Statistics vs. Benchmarks: January 1991 - June 2006
S&P 500 FTSE 100 NCREIF Index FALCON
Total Quarters 62 62 62 62
Positive Quarters 67.74% 69.35% 87.10% 98.39%
Negative Quarters 32.26% 30.65% 12.90% 1.61%
Median Quarterly Return 2.41% 2.08% 2.36% 3.44%
Average Quarterly Return 2.47% 2.27% 2.08% 3.74%
Standard Deviation 7.43% 7.09% 1.84% 1.79%
Best Quarter 20.87% 25.13% 5.43% 10.42%
Worst Quarter -17.63% -17.80% -5.33% -0.14%
Maximum Drawdown -45.60% -45.55% -9.66% -0.14%
Sharpe Ratio* -0.04% -0.07% -0.37% 0.55%
* Risk free rate is 2.75% (the average 5-yr T-Note from Jan '91 Š June '06
Correlation Matrix S&P 500 FTSE 100 NCREIF Index FALCON
S&P 500 1.00 0.73 -0.04 -0.04
FTSE 100 1.00 0.01 0.02
NCREIF Index 1.00 0.77
FALCON 1.00
Source: Falcon
17
18. Steps 1+2+3 = Efficient Frontier
15.50
Efficient Frontier with 10% Efficient Frontier with 5%
15.00 Alternative Investments Alternative Investments
14.50
14.00
Return %
13.50
Efficient Frontier without
Alternative Investments
13.00
12.50
12.00
11.50
10.00 10.50 11.00 11.50 12.00 12.50 13.00 13.50 14.00 14.50
Risk %
Source: 1980—2000 Source: Merrill Lynch Quantitative & Equity Derivatives Research
18
19. How Much Alternative Investments?
Cash
Bond
50-60%*
Equity
Alternative
Invest.
*Real assets, which includes real estate and commodities, is the largest
investment category with 31 cents of each Harvard endowment dollar.
Source: Falcon
19
20. Synopsis of Private vs. Public Real Estate
Public Equity Advantages Private Equity Advantages
Publicly traded (liquid) Access to broader array of
investment opportunities
Lower fees
No minimum size (individual investors) Lower correlation to stock markets
Public Equity Disadvantages Private Equity Disadvantages
Theoretically, lower returns Illiquid
due to liquidity premium
Higher fees
Performance often driven by capital flows and
other non- real estate related factors Appraisal-based valuations
Higher correlation to public stock markets Difficult to benchmark
High dispersion of returns in value-
added and opportunistic sectors
20
22. 2011: Global GDP $ 60 vs. $ 180 Trillion Listed
Global Financial Markets (Excluding Derivatives)
TOTAL
Bank Deposits
Government Debt
Corporate Debt
Equities
• Financial Markets offer broader access to capital from borrowers
• Financial Markets offer more efficient pricing
• Financial Markets increase opportunities for sharing risk BUT…
• Lately securitization has led to substantial increases in leverage and greater systemic risk for the entire financial system
Source: McKinsey Global Institute
22
23. Real Economy/Financial Markets Decoupling
• 1990: 33 countries have domestic market capitalization
(excluding derivatives) > GDP
• 2007: 72 countries – virtually all industrial economies and the
largest emerging markets have financial markets that are two to
three times the size of their GDP
Source: McKinsey Global Institute
23
24. Listed Real Estate – Still in Infancy
FTSE EPRA/NAREIT Countries Listed RE Vs. Stock Market Cap.
% %
Australia 30 10
Hong Kong/China 25 5
Singapore 25 10
Luxembourg 12 6
Sweden 10 4
Canada 8 3
United States 7 2
Netherlands 6 3
New Zealand 5 5
Austria 5 4
United Kingdom 4 1
Japan 4 2
France 3 1
Switzerland 3 0.6
Spain 3 2
Belgium 3 1.5
Finland 1.5 0.5
Norway 1.5 1
Poland 1.5 1.3
Denmark 1 0.6
Greece 1 0.5
Italy 1 0.8
Germany 0.5 0.5
South Korea 0.5 0.2
Hungary 0.2 0.2
Ireland 0.1 0.1
Portugal 0.1 0.1
Czech Republic 0.1 0.1
World 5.6 2.8
24
25. 2007: $ 2 Trillion Listed Real Estate
Australia
Hong Kong
Australia Asia-Pacific
Japan
9% Other Asian
25%
France
Hong Kong Germany
5% Italy
Spain
Netherlands
Japan 11%
Other Eurozone
US 53% UK
Euro zone Switzerland
10% Sweden
C & E Europe
Other
UK 6% European US
Canada
Mexico
Americas 57% Europe 18% Brazil
Other
Sources: EPRA/NAREIT, LaSalle Investment Management
25
26. Pre Crisis Global Real Estate Markets Flow
•Mature/ Highly Mature: 83%
•Maturing: 15%
•Invested •Emerging: 2%
stock
$3.2 trillion
•Investable stock Europe / Russia
$6.1 trillion
•Invested •Total stock
stock $9.2 trillion
$4.7 trillion
Americas Total stock
•$9.5 trillion
•Investable stock Middle East / Asia
$6.6 trillion •Invested •Total stock
stock $5.9 trillion
$1.9 trillion
•Mature/ Highly Mature: 9%
•Maturing: 1%
•Emerging: 1% •Investable stock
$3.5 trillion
•Mature/ Highly Mature: 17%
•Maturing: 72%
•Emerging: 11%
Pre-2008 Crisis Inter-regional capital flows of $115bn
Sources: RREEF; DTZ; ULI; PwC
26
27. International RE Risk Adjusted Returns?
Returns and risk for public real estate securities in various regions around the world can
produce half of the returns for twice the risk and can produce twice the returns for half the
risk depending what you targeted country allocation is.
Returns for Asia were for instance lower than other regions due to problems the region
has faced, including a weak Japanese real estate market for more than a decade and the
SARS outbreak in 2003
Returns and Risk of Public Property Securities Markets
(1993-2006, in U.S. dollars)
Return Standard
Deviation
U.S. 13.60% 14.90%
Europe 13.90% 14.40%
Asia 7.40% 33.20%
Australia 16.60% 18.20%
Source: Morgan Stanley, Global Property Research
27
28. Correlation in International RE Markets?
International diversification within public real estate equities is beneficial due to the low
correlations of public real estate equities between various global regions
Correlation of Public Property Securities Markets
(1993-2006, in U.S. dollars)
U.S. Europe Asia Australia
U.S. 1 0.5 0.32 0.4
Europe 0.5 1 0.34 0.52
Asia 0.32 0.34 1 0.44
Australia 0.4 0.52 0.44 1
Source: Morgan Stanley, Global Property Research
28
29. Today’s Global Private Banking Market
Liquid Assets: USD 9,000 billion Liquid Assets: USD 9,000 billion
Revenues: USD 63 billion Revenues: USD 81 billion
Ratio = 0.7% Ratio = 0.9%
Liquid Assets: USD 5,000 billion Liquid Assets: USD 7,000 billion
Revenues: USD 65 billion Revenues: USD 63 billion
Ratio = 1.3% Ratio = 0.9%
• 7 Million People Own > USD 1 Million Liquid Assets (@ 0.1% World Population)
• USD 30 (23 on shore / 7 off shore) Trillion Private Banking Market: + 2% p.a.
29
30. Public and Private Real Estate Room to Grow
HNI's Real Estate Investments (2006)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Global North Latin Europe Asia- Middle
America America Pacific East
REIT Commercial Residential* * Secondary Residence
Source: Merrill Lynch/Cap Gemini
30
31. The Luxembourg Fund Center
Pre-2008 Crisis Worldwide Mutual Funds
€ billions
9 000
Luxembourg is the second
8 000 largest fund center in the
7 000 world after the USA
6 000 1 839
5 000
8 426
4 000
3 000
4 542
2 000
2 176
1 000
0
USA Europe Asia & Pacific
Sources: EFAMA & ICI
31
32. Luxembourg Real Estate Funds: Before the SIF
AUM and Number of RE
• Huge growth since 2004 Funds
• Closed-end and Open-end funds and funds of funds
40 140
129
Number of subfunds
Reasons for success: 35 120
AUM USD bln
30
• Strong yet flexible Regulation 100
25
• Cheaper for Fund Managers than the US 80 80
20
• Reputation of location 60
• Centre of sophisticated real estate investment funds 15 48
40
Global promoter base 10 36
36
Global investor base 5 20
• Tax efficiency and stability 0 0
02 03 04 05 06
AUM # (sub)funds
32
34. SIF Launched in Feb. 07 is a Favored Structure
Profile of Luxembourg Investment Funds
Key criteria UCITS Non-UCITS SIF SICAR
Investment Restricted Flexible Flexible Moderate
restrictions (eligible
assets)
Risk diversification High Medium Low None
Ease of public High Medium Low Low
distribution
Supervisory Targeted to Targeted to retail More flexible More flexible
framework retail investor investor
protection protection
Time to establish Low - Medium Medium - High Very low Low
Target investors All All Institutional / Institutional /
HNWI HNWI
34
35. The SIF Features are Tailored for Real Estate
Key Features UCITs Non-UCITs SIF SICAR
Umbrella structures Yes Yes Yes Yes(1)
Share-classes Yes Yes Yes Yes
Debt financing No No Yes Yes
Leverage No Yes Yes Yes
Probable
Probable realization Probable
Valuation basis realization Fair value
value realization value
value
As per
Subscription/
NAV NAV offering NAV
redemption price
document
NAV frequency
Monthly Monthly Annual Annual (1)
(minimum)
Open or closed ended Open ended Both Both Both
Annual Report Yes Yes Yes Yes
Semi-annual report Yes Yes No No
Regulatory Reporting Yes Yes No No
35
36. The SIF: In a Nutshell
Criteria SIF
• Eligible investor base: Investment in a Regulated vehicle? Yes
SIF is reserved for “well-informed” Pre-approval by regulator? No
investors requiring a limited level of Other than local GAAP? Yes
protection and looking for investment REGULATORY Investment restrictions? No
flexibility suitable to their particular Investment in RE, PE, HF? All
Simplified prospectus
expertise and needs. Yes
regime?
• Investment flexibility: the range of Subscription tax? Yes
assets (nature of assets and/or Income tax? No
associated risks) eligible for a SIF is TAX
Access to DTT? Yes / No
broad and consequently includes, but is Withholding tax on dividends
paid? (residents / non No
not limited to, equities, bonds, residents)
derivatives, structured products, real Standard VAT rate? 15 %
estate, hedge funds and private equity Listing possible? Yes / No
type investments. The SIF should comply Maximum number of
No
investors?
with the general principle of risk
DISTRIBUTION Minimum investment
diversification. Min. € 125k
amount?
• Light supervision Minimum experience
Yes
required?
• Organisational adaptability Service providers / persons • Directors
• Efficient tax regime LICENSING subject to regulator's • Custodian
approval? • Auditor
36
37. Pension Funds Pooling: Use Luxembourg
British Irish Chilean Brazil British Irish Chilean Brazil
Pension Pension Pension Pension Pension Pension Pension Pension
Fund Fund Fund Fund Fund Fund Fund Fund Asset administrator
Depositary bank
Converted in Virtual or entity pension pooling
Paying agent
Administrative agent
Investments Transfer agent
Investments Investments Investments Investments
Real Auditors
Shares Bonds Deposit Estate
Law consultant
Tax consultant
• Quantitative benefits:
Economies of scales at asset management & custodian bank level up to 0.70% savings
• Qualitative benefits:
Improve measurement/selection of service provider
Enable consistent/centralized corporate governance.
• Multinationals running pension funds in several countries have implemented pension
pooling vehicle
37
39. a. Falcon Real Estate
• Highlights • Falcon Offices
• Organizational Chart • Institutional Relationships
• The Founders • Falcon vs. NCREIF Property Index
• An Advisory Firm • Current Diversified Portfolio
39
40. Highlights
• Formed in 1991 by Howard Hallengren and Jack Miller to advise Non-U.S. investors
• Directors with over 100 years combined experience in global real estate investing
• 6 office locations: NYC, Chicago, Miami, Dallas, Washington D.C., San Diego
• Company employs 17 professionals
• Falcon has completed transactions totaling about US$ 7 billion and provides
Asset Management services for commercial real estate in major markets throughout
the United States.
• Performance as of June 30th 2010, since inception in 1991*
13.9% average annual return vs. 6.8% NCREIF benchmark
Annual income return of 8.4%
* based on NCREIF investment performance standards
40
41. Organizational Chart
Howard Hallengren
Chairman
Management — Directors Chief Executive Officer
Jack Miller Scott Sweeney Amaury de Parcevaux Ken Lorman Scott Bennett Norman Hill
President Executive Vice President Senior Vice President Senior Vice President First Vice President First Vice President
Head of Asset Management Chief Marketing Officer Senior Acquisition Officer Chief Operating Officer Chief Financial Officer
Acquisitions & Accounting
Marketing Asset Management
Underwriting Reporting & Tax
Amaury de Parcevaux Kenneth Lorman Scott Sweeney Norman Hill
Senior Vice President Senior Vice President Executive Vice President First Vice President
Chief Marketing Officer Senior Acquisition Officer Head of Asset Management Chief Financial Officer
Europe, Asia, North America Eastern U.S. U.S.
Scott Sweeney Laurence Dooley Scott Bennett Angela Bleckner
Executive Vice President Vice President First Vice President Senior Accountant
Middle-East Central U.S. U.S.
Dan Stockalper Adam Doud Laurence Welsh Tamela Newton
Vice President Vice President Vice President Accountant
Middle-East Western U.S. Southeast & D.C.
Daniel Epstein Daniel Epstein Carl Omark
Vice President Vice President Vice President
Latin America, Spain, Portugal Eastern U.S. East Coast & Midwest
David Hill Timothy Puhek
Vice President
Certified Public Accountant
Southwest & DC Western U.S.
41
42. The Founders
Howard E. Hallengren Jack D. Miller
Chairman President
New York Office Chicago Office
Mr. Hallengren is Chairman of Falcon Real Estate Mr. Miller joined Falcon after serving as Manager of the
Investment Company, LP. Mr. Hallengren has been Real Estate Investment Division within Private Banking
Chairman of Falcon since its inception and has overseen International at the Chase Manhattan Bank. In that role, he
the growth of the company and the investment strategy had direct responsibility for property acquisition, property
which has delivered the exceptional IRR’s. Prior to forming management and mortgage financing. Like Mr. Hallengren,
Falcon, Mr. Hallengren was Chief Investment Officer and Mr. Miller also came to Chase from The First National Bank
Product Manager for the International Private Banking of Chicago, where he served for ten years in the bank’s real
Department of the Chase Manhattan Bank. In that estate investment division. He is a founding member of the
capacity, he had overall responsibility for the bank’s real Accounting Standards Committee of the National Council of
estate investments on behalf of non-U.S. investors. Before Real Estate Investment Fiduciaries, which is the
joining Chase, Mr. Hallengren was Chief Investment Officer coordinating group that sets accounting standards for U.S.
at The First National Bank of Chicago. During his tenure institutional investors. Mr. Miller received a Bachelor of
there, he also served as Chairman of the Real Estate Science degree in accounting and a master of finance in
Investment Committee, which supervised the Trust real estate from De Paul University, as well as a master’s
Department’s real estate investments. Mr. Hallengren is a degree in business administration from the University of
graduate of Princeton University and received his master’s Chicago.
degree in business administration from the University of
Chicago.
42
43. An Advisory Firm
We offer a complete real estate investment We act as our Client’s Agent and Representative in the
management platform, including advice on purchases, United States
financing, and sales, as well as a comprehensive asset
management service We have a fiduciary responsibility to the Client,
which means that we act according to the Client’s
We customize our approach to meet our best interest and instructions
clients’ goals
As the Client’s Advisor on Direct Real Estate Falcon’s Asset Management team selects and
acquisitions, we receive property submissions from supervises local leasing and property management
every Brokerage Firm in the country and maintain agents, monitors and controls all receipts and
close relationships with many of the country’s most disbursements, and provides comprehensive quarterly
important real estate owners and operators reports on each property.
Our decades-long close relationships with We customize every Asset Management
Brokerage Firms and Ownership provides Clients strategy and budget
with the insight required to successfully bid on
properties
Falcon Real Estate is an investment manage-ment Falcon is not related to any other entity of any kind in
advisory firm – not a Brokerage Firm the real estate industry in the United States
We represent our clients as buyers or sellers in a Therefore, we are totally independent and focused
transaction independent of the Brokerage Firm on meeting the objectives of our clients.
43
44. Falcon Offices
Broad Coverage of U.S. Market
New York City
Chicago
Washington D.C.
San Diego
Dallas
Miami
6 Falcon Offices
Current Asset Management Assignments
44
45. Institutional Relationships
BNP Paribas, Global (U.S. Alliance Partner)
Generali Immobiliare, Paris (U.S. Investment Advisor)
Credit Suisse Private Bank, Zürich (Invested on Behalf of Clients)
HSBC Amanah, New York (Managed Real Estate Fund)
Citi Private Bank, London, Abu Dhabi and Geneva (Invested on Behalf of Clients)
Kuwait Finance House, Kuwait (Managed Real Estate Fund)
Capital Trust, London (Advised on Purchase of Properties)
Deutsche Bank Realty Advisors, New York (Advised on Purchase of Properties)
FT Sirius Fund, Hong Kong (Created FT Falcon Asia Ltd. Joint Venture)
45
46. Track Record: Falcon vs. NCREIF Property Index
Annual Returns of Falcon vs.
NCREIF Property Index As of June 30, 2010
* Inception Date — January 1, 1991
Source: Falcon Asset Management
The NCREIF Property Index is a commercial real estate index consisting of 6,066 privately
held investment properties with a market cap of $234.5 Billion.
46
47. Current Diversified Portfolio
Falcon Portfolio (Market Value) Falcon Portfolio (Square Feet)
Market Value Sq. Ft.
Office: Multi-Tenant $401,009,827 24.51% Office: Multi-Tenant 1,805,822 14.01%
Office: Single-Tenant 395,835,487 24.19% Office: Single-Tenant 2,090,588 16.21%
Retail 98,007,836 5.99% Retail 396,922 3.08%
Residential / Development 459,500,000 28.07% Residential / Development 1,061,327 8.23%
Industrial 282,060,184 17.24% Industrial 7,538,969 58.47%
Totals as June 30, 2010 $1,636,413,335 100.00% Totals as of June 30, 2010 12,893,628 100.00%
Office:
Industrial Office: Multi-tenant
17.24% Multi-tenant 14.01%
24.51%
Industrial
58.47%
Office:
Single-tenant
16.21%
Retail
Office: 3.08%
Residential/ Single-tenant
Development 24.19%
28.07% Residential/
Development
Retail 8.23%
5.99%
Source: Falcon Asset Management
47
48. b. Investment Process
• Highlights
• Acquisition Process
- Acquisition Process Time Line
• Asset Management
- Asset Management Duties
• Accounting and Reporting
• Case Studies
48
50. Acquisition Process
Property summary and location overview
Rationale for purchase and exit strategy
Acquisition Committee
Full valuation and earnings projections YES NO
Analysis of market, location, tenant
creditworthiness and debt coverage
Letter of Intent /
Engage attorneys
Negotiations
Review third party reports from lenders, appraisers,
engineers, and zoning & environmental agencies YES NO
Inspect property
Select on-site team
Due Diligence
Lock-in financing and leasing strategies
Insurance review
Finalize pro forma
YES NO
ASSET MANAGEMENT Closing
50
51. Acquisition Process Time Line
*Third Party Reports Include: Appraisal, Environmental Inspection, Engineering Report,
Zoning Report, Survey, and Other/Misc. Reports
SNDA - Subordination and Non-disturbance Agreement
51
52. Asset Management
• Falcon Asset Management team has managed properties throughout the United States
• Falcon’s Asset Management team establishes an overall strategy and budget for each
property, selects and supervises local leasing and property management agents, monitors
and controls all receipts and disbursements, and provides quarterly reports
• Capabilities in all 6 offices allowing us to benefit from local market knowledge
and relationships
• Group consists of 5 senior Asset Managers with strong expertise in all areas
of Asset Management
• Review committee insures best practices to each property
• Argus software expertise allows for detailed and flexible financial projections
52
53. Asset Management Duties
• Establish overall strategy for each property • Secure appropriate casualty and liability
insurance coverage
• Select and supervise local leasing and
property management agents as required • Negotiate lease terms and work with
outside legal counsel to document such
• Create annual operating and capital
leases
budgets
• Implement a property renovation or capital
• Review actual financial results against
improvement program
budgets on a monthly basis
• Carry-out property site inspections at least
• Monitor and control all receipts and
on a quarterly basis
disbursements
• Coordinate with outside accounting and
• Make debt service payments as required
legal firms all tax filings and audits
• Make real estate tax payments or confirm
• Provide client with a detailed quarterly
payment as required
report with financials
53
54. Asset Management Controls
• Asset Management Review Committee reviews each property on a regular basis and
approves all major property decisions to insure best practices
• Approval of annual operating budgets
• Review and approval of all major property decisions (e.g. sale, financing/re-financing, a major
tenant lease or capital expenditure)
• Review actual results compared to annual budget
• Update on leasing activity and property strategy
• Discussion of major issues regarding each property
• Other Asset Management Controls
• All proposed lease transactions and contracts require approval from Head of Asset
Management
• The only authorized signers to a lease document or contract are the Chairman, President,
Executive Vice President or Senior Vice President
• The handling of all cash receipts and disbursements are subject to formal cash management
policies and procedures
54
55. Accounting / Reporting
• Accounting function is centralized in our Dallas office
• Accounting group consists of 4 experienced accounting professionals including
Certified Public Accountants (CPAs)
• Experienced in fund management accounting and the audit process
• MRI accounting software, the industry standard, is used
• Financial statements and cash account reconciliations are completed on a
monthly basis
• Financial statements are presented to clients on a quarterly basis
• Provides support to third party accountants for tax return preparation and audits
55
56. Accounting / Reporting
Audited Financial Statements
Annually
Tax Returns
Operating Budgets and Annual Financial
Quarterly
Reports
Reporting & Analysis
Monthly
Balance Sheet & Income Statements
with Budget Comparisons
Bank Account Reconciliations
Loan Balances & Escrow Account
Reconciliation
56
57. Case Studies
2 Rodeo, Beverly Hills, CA
ACQUISITION STRATEGY
• Premier global retail destination
• Undercapitalized by previous owners
• Retail spaces were outdated and inadequate for
premier tenants
FALCON ASSET MANAGEMENT VALUE-ADD
• Engaged prime leasing agents and consultants to re-position
the property as a pre-eminent retail center with smaller
boutique-like spaces
• Detailed marketing and merchandising strategy and renovation
to implement quality standards for appropriate tenant mix and
shopper profile
• Retained Tiffany & Co. as anchor tenant with 20 year lease
renewal
• Attracted additional exclusive new tenants such as Versace and
Gucci
RESULT
• Purchased for $143 MM in 2000, and sold in 2007 for $275 MM
• Investor IRR 15.8% p.a. over 7 years
57
58. Case Studies
1201 and 1225 New York Avenue, Washington, D.C.
ACQUISITION STRATEGY
• Attractive, adjoining new buildings four blocks from the White
House
• Strong, growing Washington D.C. office market
• Separate owners; management, tenant and space allocation
inefficiencies
FALCON ASSET MANAGEMENT VALUE-ADD
• Purchased 1201 in 1999 and 1225 in 2000 joining and greatly
expanding tenant space
• Extensive property refurbishment and modernizing
• Major re-tenanting with entire building leased to tenants such
as U.S. Department of Homeland Security, Federal Elections
Commission, and Office of Government Ethics
RESULT
• Total purchase concluded at $112 MM in 2000, sold in 2005
for $215 MM
• Investor IRR 12.0% p.a. over 6 years
58
60. Conclusion
A. Privately Held vs. Publicly Held Real Estate
• Each have their own merit, even if the Privately-held RE is likely to continue to
dominate
• Clearly Commercial Real Estate in all its forms will continue to grow for all the
reasons we discussed
B. International Perspective
• Trend # 1: Hard Assets logic inescapable
• Trend # 2: The Global Real Estate market will continue to integrate
• Trend # 3: The Luxembourg Real Estate Funds will continue to grow
C. Falcon’s Case Study
• Add Value with RE Professionals and preserve value for your clients and yourself
• Stream-line and diversify your business model
• Embrace the win-win religion
60
61. Career’s Feedback
• First and foremost: Carpe Diem
• Additional Feedback
• Resume – spotless like a new building
• Interview – search the “win-win”… so sell yourself
• Companies to target
RE Companies
Banks (BNP Paribas Real Estate, Morgan Stanley)
• RE Teams
• Private Bank / Wealth Management
Insurance Companies (Allianz, AXA)
Sovereign Wealth Funds (ADIA)
• GREM – perfect G L O B A L platform: US-LatAm-Europe-Asia
• Does Falcon Hire?
61
62. Questions & Answers
Amaury de Parcevaux
Chief Marketing Officer
Falcon Real Estate Investment Management, Ltd.
570 Lexington Avenue, New York, NY 10022
Tel: (212) 271-5445
E-mail: adeparcevaux@falconreal.com
www.falconreal.com
62
63. Appendix 1
a. Falcon Current View on Real Estate Market
b. Our Quarterly Office Market Research / www.falconreal.com
63
64. a. Real Estate Market Overview
• U.S. Commercial Real Estate Market
• Why Invest Now?
• How to Succeed In Today’s Competitive Market
• Investment Strategy
• Conclusion
64
65. U.S. Commercial Real Estate Market: Overview
Market Overview
Improving real estate fundamentals in most markets
• Increased demand and a reduction in sublease availability have led to the
stabilization of net effective rents (asking rents plus concessions) and vacancies
• Lack of overbuilding in major markets has supported market fundamentals and
should provide opportunities for long-term investors
The U.S. economy continues to show clear signs of improvement with declining
unemployment, 2010 GDP growth of 2.8% and 2011 GDP growth forecasted at 3.2%-
3.6%
Investment activity is increasing, particularly in the 6 major CBD markets (New York,
Washington D.C., Boston, Chicago, San Francisco, and Los Angeles)
Excellent opportunities exist in larger second-tier cities and satellite markets due to
investor focus on the 6 major CBD markets
Competitive debt financing is once again available for quality properties
65
66. U.S. Commercial Real Estate Market: Declining Cap Rates
Annual CMBS Issuance and U.S. Cap Rates
250 9%
200
8%
150
USD Billions
7%
100
6%
50
0 5%
1990
1993
1994
1995
1996
1999
2000
2001
2002
2003
2005
2006
2007
2008
2009
1991
1992
1997
1998
2004
2010
CMBS Issuance (billions) Cap Rates
Capitalization rates (net operating income divided by purchase price) are declining in many
markets due to greater demand, especially from international investors, limited supply of
properties available for purchase, increased availability of financing, the low interest rate
environment, and expectations of rising rental rates
Cap rates in the six major CBDs have declined from their high point in 2009 to near 2007
levels while cap rates in satellite markets have declined to a lesser degree
While CMBS issuance has not recovered from the levels at the market peak, insurance
companies and some banks have partially filled the void
Source: Commercial Mortgage Alert, PPR, NCREIF, Moody’s Economy.com, PricewaterhouseCoopers, Falcon estimates
66
67. U.S. Commercial Real Estate Market: Historical Prices
Moody’s/REAL Commercial Property Price Index
67
68. Why Invest Now?: Summary
Falcon believes this is an historic opportunity to purchase high-quality
properties at attractive prices and yields
Current Favorable Market Characteristics for Buyers:
1. Market Fundamentals
2. Unique Timing
3. Growing Economy
68
69. Why Invest Now?: Market Fundamentals
Market Fundamentals Are Improving in Most Markets
Vacancy rates and net effective rents have bottomed out in many markets
• Three consecutive quarters of positive net absorption have been recorded
on a national basis
• Rental rates in some core CBD markets such as Washington D.C., New
York, San Francisco, and Boston are starting to increase
• Landlord concessions have stabilized and are declining in some markets
• As corporate demand begins to return, rental rates should increase more
broadly
Most markets are not suffering from the overbuilding that plagued past downturns
• Limited new construction is expected over the next 3-4 years
• Major markets are generally facing vacancy rates of 10-20%
The economy, which is a leading indicator for the real estate market, is recovering
slowly but steadily
69
71. Why Invest Now?: Unique Timing
Unique Opportunity To Invest As The U.S. Market Recovers
There is currently an opportunity to acquire quality properties at an attractive basis relative
to historical pricing benchmarks
Potential for capital appreciation due to expectations of future rental rate growth
Real estate investments have traditionally been an effective hedge against inflation
International investors are targeting the U.S. real estate market
• According to an AFIRE survey, foreign investors believe the U.S. offers the best
market for capital appreciation
• AFIRE’s 2010 survey ranks New York and Washington, D.C. ahead of London
and Paris
• International investors view the U.S. as a stable market in times of economic or
political uncertainty
Foreign buyers have dominated recent acquisition activity in the major cities
• Falcon began in 1991 during a real estate crisis and advised foreign investors to take
advantage of discounted prices resulting from that crisis
Source: University of Wisconsin School of Business James A. Graaskamp Center for Real Estate, Association of Foreign Investors in Real Estate (AFIRE)
71
72. Why Invest Now?: The Economy is Growing
Recent Economic Indicators Suggest That The U.S. Economy Has Been
Showing Steady Improvement
GDP has grown for 6 consecutive quarters led by increased U.S. consumer spending
The S&P 500 has nearly doubled from the lows reached in March 2009
The unemployment rate has fallen to 9.0% from a high of 10.1% in November 2009
The banking sector has regained strength after surviving the recent crisis
Housing prices appear to have bottomed out in many areas of the country
The federal government’s economic stimulus has contributed to improved consumer sentiment
72
73. How to Succeed in Today’s Competitive Market
Acquiring Properties In the Major Cities Is Very Competitive
Established credibility and a track record with sellers and brokers is crucial to winning a
bidding process
• Buyers are selected based on price, reputation, and ability to close in a timely
manner
Falcon has forged a 20+ year relationship with the brokerage community
Falcon’s successful track record advising investors is widely known
Investors need to make rapid decisions during a bidding process
• Timely internal approval process and open communication with Falcon
• Important to rely on Falcon’s expertise during the acquisition process
Rapid analysis of a large amount of information
Determination of appropriate pricing and bidding strategy
Financial, tax, and legal structuring
Coordination of due diligence
Buyers of trophy properties in major cities may need to conduct upfront due diligence to
increase their odds of winning a bidding contest
73
74. Investment Strategy: Offices
Focus on Class A Single and Multi-Tenant Office
• Offers attractive risk-adjusted returns and long-term stability
• Highest potential for appreciation with additional value enhancement through Falcon’s Asset
Management expertise
• JV partnerships with major operators are a method to access quality properties
• Tenancy
Investment grade single-tenants with long-term leases in critical use properties and
contractual rent escalations
Multi-tenant with dispersed lease expirations and diversified tenant base
• Location
Central Business District locations in cities with growing population, a relatively
strong economy and transportation links
Satellite locations with growing nearby population centers and expanding local
economy with high concentration of office buildings and barriers to new construction
74
75. Retail, Apartments, Logistics, MOB
Retail
Focus on high-traffic in-fill locations with high income, high land costs, and restrictive
planning controls
Neighborhood and community centers with recession-resistant anchor tenants and
minimal in-line shop space
Select high-end retail within top markets
Rental Apartments
Well-located rental apartments are particularly attractive
Collapse of housing and condo markets has led to rising rents and occupancy rates for
apartments
Few rental apartments built in recent years due to emphasis on condominiums
Higher availability of financing
Logistics
Located in distribution hubs (e.g. rail, airports, seaports)
Modern and flexible design
Single or multi-tenant
Medical Office Buildings
Long-term leases to investment grade hospitals in a sector with strong demand
75
76. Investment Strategy: U.S. Office Markets
Boston, Massachusetts
Overview
Seventh largest metropolitan area in the U.S. with 24-hour city environment
Strong tenant base and high barriers to entry
Key industries include finance, technology, biology, education, and healthcare
Economy entered recession later than the rest of the U.S. and has been impacted by
decrease in equipment and software investment
Small tenants leasing an average of 10,000 square feet dominate the market
Investment Rationale/Opportunities
Downturns tend to be short and market fundamentals usually reverse quickly and
dramatically once business conditions improve
Cambridge sub-market with recession resistant biotechnology companies is
particularly attractive
76
77. Investment Strategy: U.S. Office Markets
Chicago, Illinois
Overview
Second largest office market in the U.S.
Location at the center of the U.S. makes it a key transportation and distribution hub
Home to the largest concentration of corporate headquarters in the U.S., including
sixty-seven Fortune 500 companies
Investment Rationale/Opportunities
Low amount of new development with some speculative properties nearing delivery
Higher capitalization rates present opportunities
Solid corporate tenant roster and location is favorable for future demand growth
77
78. Investment Strategy: U.S. Office Markets
Los Angeles County, California (excluding downtown)
Overview
Fifth largest office market in the U.S. and most populous county in the U.S.
Headquarters for seventeen Fortune 500 companies
Just about every industry sector is a major contributor to the economy
Recession resulted in increased unemployment
Investment Rationale/Opportunities
Limited speculative development
With the employment picture beginning to improve, tenant activity should increase,
providing stability to investors
Historically stable office market should become more attractive as the economy
continues to improve, providing upside to new investors
78
79. Investment Strategy: U.S. Office Markets
San Francisco, California
Overview
Fifth largest metropolitan area in the U.S.
Diverse range of industries including technology, biotechnology, and finance
Headquarters for many of the world’s leading technology companies (i.e. Google, Yahoo!,
Cisco) and one of the largest oil companies, Chevron
Unemployment rate below the national and state of California average
Investment Rationale/Opportunities
Low amount of speculative development
High-growth technology companies provide future upside
79
80. Investment Strategy: U.S. Office Markets
Washington, D.C.
Overview
Area is home to the U.S. Federal government
Fourth largest metropolitan in the U.S. and highest median household income
Diverse range of industries including government, defense, travel, and education
Unemployment rate below the national average due in large part to the stability provided by
the U.S. government
Investment Rationale/Opportunities
Relatively more stable market fundamentals
Attractive destination for domestic and foreign capital
80
81. Investment Strategy: U.S. Office Markets
Atlanta, Georgia
Overview
9th largest population center in the U.S., referred to as “Capital of the South”
Home to 22 Fortune 1000 companies including Coca-Cola, Home Depot, AT&T, and CNN
Significant population and employment growth over the past decade
Speculative properties scheduled for delivery in the next two years
Investment Rationale/Opportunities
Institutional buyers may pass over the market in favor of larger markets, creating pricing
opportunities
Focus on properties with longer-term leases
81
82. Investment Strategy: U.S. Office Markets
Miami, Florida
Overview
International city serving as the headquarters of Latin American operations for
numerous multinational corporations, especially banking institutions and television
headquarters
The Port of Miami is one of the largest U.S. cargo ports and also services a huge
cruise ship industry
Economy has been adversely impacted by the housing downturn
Unemployment above the national average
Investment Rationale/Opportunities
Relatively low contraction in rental rates and increase in vacancies
Demand from European and South American investors should support future prices
Suburban markets, such as Coral Gables, with development constraints, are
particularly attractive
New properties with solid tenant rosters
82
83. Investment Strategy: U.S. Office Markets
Northern New Jersey (suburban New York)
Overview
Sixth largest office market in the U.S. and 18th largest economy in the world
State with the third highest number of corporate headquarters in the U.S. (54 Fortune
500 companies)
Key industries include pharmaceuticals, telecommunications, insurance, and finance
Recession impacted tenants in the finance, insurance, and real estate sectors
Investment Rationale/Opportunities
Serves as a back office area for Wall Street, benefiting from corporations’ paring back
more expensive space in New York
Larger corporate submarkets have fared particularly well and present opportunities
Reduction in property prices and lack of new development is positive
Sale and leaseback opportunities may arise as corporations seek to monetize their
portfolio of real estate holdings
83
84. Investment Strategy: U.S. Office Markets
Seattle, Washington
Overview
Major port city with relative proximity to Japan and China
Headquarters for companies including Microsoft, Starbucks, Amazon, and Costco
Rapidly growing population during the last two decades
Significant amount of speculative properties under construction
Investment Rationale/Opportunities
One of the highest historical rates of job growth
Diverse economic base
Highly educated workforce
Migration of employers to more dense districts favors investment downtown
84
85. Conclusion
Now is an Ideal Time to Invest in U.S. Commercial Real Estate:
The economy has been growing for the last 6 quarters
U.S. real estate market fundamentals have stabilized
• Vacancy rates have bottomed out in most markets
• Net effective rental rates are stabilizing in most markets and are poised for
future growth
• New construction is limited
Pricing today is below replacement cost
• Potential for value appreciation when the market returns to equilibrium
Recovery in credit markets has begun
Excellent buying opportunities are surfacing today for long-term investors
85
Editor's Notes
You introduce Falcon first and then yourself
Given that only 10% of all Commercial Real Estate is listed globally, the Private Equity industry with its on-going evolution is the perfect think-tank for the Commercial Real Estate world. Sophisticated leverage techniques developed either for buyouts or for venture capital in the industry inspire the Real Estate world from initial leverage, to hedging techniques to exit strategies, as both share a core intrinsic attribute: a lack of liquidity, tempered by an absence of volatility , but that still has to be offset by double digit IRR projections to attract investors.
We said earlier that the Commercial Real Estate market can be segmented into four main compartments: Public versus Private and Debt versus Equity. Here is a simple chart that attempt to position each of the four categories in a risk/reward perspective. Given that the debt, whether private or public offers the least degree of both risk and reward we will solely discuss the Public versus the Private Equity Commercial Real Estate investments during the rest of the presentation. It was still important to mention this positioning exercise of equity versus debt at this stage of the presentation to ensure we cover as much of an overview as we can during our 30 minutes together.
Given that the market value of listed real estate is so low in comparison to its non-listed cousin, it can be hard to distinguish between the two when statistics deal with combined real estate as seen in the previous slide. This slide will help us get a feel when comparing listed with non listed Real Estate. In the United States listed REITs have been around for about 50 years, so there is ample statistics available. The listed REITs in the US, whether equity REITs, debt REITs or Hybrid REITs, whether sector specific, region specific or diversified, in the US are compiled in an index called the NAREIT. The NAREIT on average is leveraged 50%. At the other end of the spectrum, the NCREIF index capitalizes the value of over 5,000 investment properties across the US for about $ 250 billion. The NAREIT reports its figure on an unleveraged basis. As we would expect the leveraged index delivers its share of higher positive returns but also sharp losses such as in 1998. This slides demonstrates that there is “Real Estate” and “Real Estate” alone in terms of expected returns
Before going into the Global Real Estate Market it is helpful to remind ourselves that there is a disconnect between the real economy and the financial markets, just as there can be a disconnect between the NAV of a REIT and the value of its underlying Real Estate assets. Warren Buffet in 2003 famously called the derivative markets the “Financial weapons of mass destructions”. Without even looking at the derivatives markets the Global GDP amounts to about $ 60 trillion while the traditional financial markets: money market, bonds and stocks are worth three times the amount. While we all appreciate the benefits of the financial markets, such as the broader access to capital from borrowers, or more efficient pricing etc. lately the securitization frenzy that led to excess leverage have exposed the entire financial system.
To put the real economy/financial market ratio into perspective, in 1990, according to a study done by McKinsey only 33 countries had a domestic market capitalization greater than their GDP against 72 in 2006. We all expect the trend to continue – which partially explains the reason why some prestigious Universities such as Harvard Endowment allocates 31% of its assets to “Hard assets” or why “sovereign funds” have over 70% in “hard assets”. Maybe the better part of the “Real Estate” market is in fact the word “Real”?
Here is an interesting pie chart that shows the current listed Real Estate securities are mostly to be found in the more mature economies, with the US accounting for half, Europe for a quarter and Japan for 10% totaling 80%. Having said that not all listed Real Estate can access cross border deals – for instance it is only in 2008 that J-REITs, Japanese REITs will be allowed to buy non Japanese Real Estate. But who are the most active investors in the REITs?
Another significant new trend in the world is the globalization of the real estate market. In the first half of 2007 alone over $ 115 bn worth of commercial real estate transactions were done between the Americas, Europe, the Middle-East and Asia.
Why do investors increasinglybother to go to other continents to invest in Privately held Real Estate with all the legal, tax, language complexity that such decisions entail? While few global statistics exist on the privately held commercial real estate track record, datas can be found in the listed REITs as shown here. These statistics were compiled by Morgan Stanley and show that between 1993 and 2006 investing in inter-regional real estate markets could have been rewarding. On the other hand risk adjusted return in Asia for instance in this period was particularly unattractive
In a similar fashion using correlation coefficient from real estate listed securities was key in optimizing efficient frontier models, beyond the domestic models we saw in the first part of the presentation. Every serious Institutional Investor today – allocate funds globally for the very reason of optimizing the efficient frontier – and Real Estate cross-border investments, unless we face a global pandemic or a World War III is only going to accelerate.
A third interesting trend is that will change the nature of Privately Held Real Estate funds in an increasingly global real estate market is the Luxembourg financial center. While listed securities such as REITs benefit from the market capitalization of the NYSE-Euronext, the Tokyo Stock Exchange or the London Stock Exchange, Privately-held real estate especially when structured in Private Equity fund are registered in Luxembourg. Luxembourg as you know is the second largest financial center in the world after the US for Mutual Funds. It totaled almost $ 2 trillion in market capitalization in 2007
Against this unique fund financial center backdrop, Real Estate funds have grown as well for the following reasons.Strong yet flexible RegulationCheaper for Fund Managers than the USReputation of locationCentre of sophisticated real estate investment fundsGlobal promoter baseGlobal investor baseTax efficiency and stability
The Reasons why the SIF is so popular is that it benefits from the ideal fund criteria – which are (read the text in red)
At Falcon we tested for one of our real estate fund and this was our experience. Maybe you want to talk about the umbrella concept, the leverage, the share classes, the dual currency registration and that is fitted for a Private Equity Real Estate Fund
In a nutshell the SIF is lightly regulated and ideal for diversified Real Estate funds involving several countriesa tax efficient vehicle, as Luxembourg has a growing list of countries signing double tax treaties simple and fast to incorporate giving fund manager additional flexibility to seize opportunities
And finally the SIF is increasingly accepted by the Pension fund communities throughout the world for the reasons cited earlier as well as for the “pool facilities” that Luxembourg custodian provide. This chart shows the so-called “Pension Pooling” .