FOCUS ON INVESTMENTS

POLICY

Our investment policy is called to develop investment products with an optimal risk-yield-liquidity ratio, meeting investor’s objectives.

CATEGORY

ACCENT Group's investment policy limits the investment focus to three key sectors:

  • retail: malls (community, regional, superregional retail and leisure destinations), retail parks as well as Big-Box department stores with top-class mono lessees;
  • offices: specifically, we prioritize office and mixed-use business centers as well as office manors;
  • industrial real estate, including logistics, warehouse, distribution centers and parks (with wide temperature ranges and logistical options).
LEVEL

We include only high-quality investments in our list (primarily Class A, in exceptional cases Class B+) in prime locations, protected against downside risk caused by macroeconomic, sectoral and business factors. In some cases, we consider assets that have the potential of evolving into investment-grade properties in the future (for the sake of a good bargain), since we look out for income-producing assets at discounts to replacement cost.

LOCATION

Geographically, the search of investment assets is limited to the territory of Russia and mainly focused on Moscow, Moscow region, St. Petersburg and Leningrad region. We eye assets in million-plus cities if they are liquid, marketable and of exceptional quality.

INVESTMENT STRATEGIES

We have experience with all investment strategies typical of the commercial real estate market. ACCENT Group is implementing 3 key strategies with different risk / yield ratios.
Core

The Core (Core and Core Plus) strategies have the following key hallmarks.

The risk / yield profile is a conservative strategy noted for minimum real estate investment risk and, accordingly, for a modest yield.
In the Core Plus strategy the yield can be increased by assuming the risk of leveraged investing or acquiring an asset in a riskier location and incurring other risks set off by a yield premium.

Investment assets are stabilized properties, i.e. facilities with more than 80% of the floor space let to long-term tenants bringing a proven incoming rental flows.
For the Core Plus strategy vacancies can be as high as 40%.

Typical operational models for the strategy: "Buy-and-Hold" (a rental model implying property acquisition for long-term lease) and "Sale-and-Leaseback" (a rental model implying property acquisition from an owner for long-term lease to the same owner).

The loan to value (LTV index) or the leverage ratio is no more than 40%. In the Core Plus strategy, the lifetime value can be 60% or more.составлять 60% и более.

Value Added

The Value-Added strategy has the following key hallmarks.

The risk / yield profile is modest: the risks of investing in real estate fall within a moderate zone and the yield is at mid-level.

Investment assets are existing facilities requiring certain investments for their appreciation to the market value, due to future generation of the incoming cash flow or a significant rise in the current operating earnings.

Operational models typical of this strategy include the options of various asset changes – from physical alteration (refurbishment, major overhaul) to business-related changes (re-conception, rebranding) – which can facilitate a successful sale or lease.

The loan to cost (LTC) - to loan to value (the LTV / LTC indicator) usually ranges from 60 to 80%.

Opportunity

The Opportunity strategy has the following key hallmarks.

The risk / yield profile is aggressive: high investment risks are set off by high yields.

Investment assets - land plots and titles to a future (under construction) property.

Operational models, typical of the given strategy, are based on greenfield development (Greenfield Opportunity), or on redevelopment of existing buildings (Brownfield Opportunity).
The least risky options within this strategy are Build-to-Suit projects (including Build-to-Sell or Build-to-Lease schemes).

The loan to cost (LTC) indicator can reach 80% and well above.

Our offer for real estate investors

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