Investment Criteria
Shaikh Capital Partners focuses on investing in US based properties that offer intrinsic long-term value. This involves acquiring assets at discounted values relative to replacement cost, stabilized cash flow and comparable market sales, as well as avoiding opportunities where key value drivers are not real estate based. Shaikh Capital Partners underwrites investments on an unleveraged basis and then customizes capital structures to optimize risk adjusted returns. Shaikh Capital Partners believes that its focus on value-oriented investing provides downside protection.
Shaikh Capital Partners targets the following broad categories of real estate investments: (i) value creation opportunities, (ii) complex situations and (iii) distressed/restructuring opportunities.
Value creation opportunities - These opportunities may include situations in which an investment’s basis compares favorably to its intrinsic value and a repositioning is required, or there is the potential for near-term improvement in cash flow through active asset management.
Complex situations - Complex situations are difficult to categorize or anticipate, but typically involve multiple disciplines of real estate investing and therefore are difficult for many real estate investors to evaluate. Given their unique nature, these opportunities can offer attractive risk-adjusted returns due to inefficient pricing.
Distressed/restructuring opportunities - These opportunities can be situation-specific, derived from the liquidity requirements or capital structure issues of individual owners or properties; or systemic, resulting from a broad financial system dysfunction.
Opportunities for adding value
Shaikh Capital Partners targets the following broad categories of real estate investments: (i) value creation opportunities, (ii) complex situations and (iii) distressed/restructuring opportunities.
Value creation opportunities - These opportunities may include situations in which an investment’s basis compares favorably to its intrinsic value and a repositioning is required, or there is the potential for near-term improvement in cash flow through active asset management.
Complex situations - Complex situations are difficult to categorize or anticipate, but typically involve multiple disciplines of real estate investing and therefore are difficult for many real estate investors to evaluate. Given their unique nature, these opportunities can offer attractive risk-adjusted returns due to inefficient pricing.
Distressed/restructuring opportunities - These opportunities can be situation-specific, derived from the liquidity requirements or capital structure issues of individual owners or properties; or systemic, resulting from a broad financial system dysfunction.
Opportunities for adding value
- Repositioning and strategic capital improvements to enhance or reinforce the property's desirability to tenants within the market
- Active leasing of vacant and rollover space to credit tenants at market-leading rental rates and terms
- Operating improvements that reduce operating costs, increase energy efficiency, and improve sustainability
- Redevelopment and select development when appropriate given market conditions
- Transaction sourcing and structuring that build upon our relationships and experience deploying efficient legal, tax, and ownership structures
- Prudent financing use of moderate leverage and a preference for rate-protected financing for the underwritten hold period
- Consideration of exit continuous reassessment of the exit timing based on asset performance, economic and local market conditions, and the strength of prospective buyer demand
Diversity in real estate sectors
Our in-depth knowledge of the real estate markets in the United States means we are sensitive to market dynamics, and can adjust our investment strategy across sectors to ensure the best returns for our investors.
The clients we advise invest in the following types of real estate:
o Office
o Residential
o Industrial
o Logistics, distribution and warehousing
o Retail & Shopping Centers
o Developments and redevelopments
o Hotels and Resorts
o Brownfields, Greenfields and Master plans.
Types of investment
We make the following types of investments:
o Single assets and portfolios
o Development or redevelopment projects
o Real estate operating platforms
o Structured loans and partnerships
Our in-depth knowledge of the real estate markets in the United States means we are sensitive to market dynamics, and can adjust our investment strategy across sectors to ensure the best returns for our investors.
The clients we advise invest in the following types of real estate:
o Office
o Residential
o Industrial
o Logistics, distribution and warehousing
o Retail & Shopping Centers
o Developments and redevelopments
o Hotels and Resorts
o Brownfields, Greenfields and Master plans.
Types of investment
We make the following types of investments:
o Single assets and portfolios
o Development or redevelopment projects
o Real estate operating platforms
o Structured loans and partnerships