Next Tier Real Estate Investors
Acquisition and Investment Management
NT invests in select Data Center / Mission Critical assets, those with a Mission Critical component within the asset as well as other commercial real estate investments that provide an off-market opportunity to deliver superior risk-adjusted returns.
NT looks to identify such off-market investment transactions through our proprietary deal flow sources as well as our extensive business relationships. NT looks to invest in, restructure and/or redevelop underutilized, misdirected or inefficient assets. We look for investment transactions that have "hair" on them; where we have an "edge" that others have not yet recognized and / or where perceived risk exceeds measurable 'real' risk by a significant order of magnitude. We look to exploit dislocations in Markets as well as within asset ownership and asset or portfolio financing constructs.
Downside protection is achieved at the time of acquisition (underwriting) and through subsequent asset / property management. NT generally undertakes opportunities where the acquisition basis is below that of the competitive set and / or replacement cost, there is a clear path towards increased cash-flow, focused asset management can "manage down" acquisition risk. In most instances we establish effective control upon acquisition or embed 'springing control' features into the venture arrangement.
Furthermore, our investment approach is rooted in a background grounded in real estate fundamentals at the asset level, coupled with an intimate knowledge of demand and supply dynamics at a regional and local market level pertaining to any prospective investment asset.
It is our deep understanding of all aspects of the investment process - including evaluation, origination, structuring, financing, development and all facets of asset level management - deployed across a diversified portfolio of real estate assets, that provides us with a strong and compelling competitive advantage for delivering superior risk-adjusted returns.
NT professionals bring extensive experience to the Asset Management and performance measurement functions. We are generally guided by an approach that focuses on - first and foremost - "managing down" risk while executing on a value-add investment thesis and / or, subsequently, "managing up" return. Most risk elements are identified at underwriting and become part of the comprehensive asset management plan for each asset.
Annual budgeting and forecasting is used for operational decision support and to manage distributional cash flow and tax incidents to the investors. Best practices in capturing and reporting upon critical asset performance metrics are maintained at all times. Recurring value measurement (including appraisals / valuations where appropriate) is incorporated into forward- looking analyses to provide ongoing assurance that investment performance remains in line with, or is expected to exceed, forecasts and / or underwriting.
NT's Asset Management experience includes designing and executing systems and procedures to provide reporting that is focused on performance measurement, satisfies regulatory (including tax) compliance requirements, provides appropriate information for Institutional Investor and Lender needs, and delivers best in class levels of transparency and disclosure. The Principals and professionals at NT have previously undertaken such asset management responsibilities for major Financial Institutions, large Private Equity vehicles and other ventures where the need for timely, relevant, audit-able and insightful reporting was a crucial management requirement.
The asset management process we pursue, which actively focuses on capital preservation and value creation within a robust risk-management framework, is very hands-on as we remain intimately involved in the delivery of specific business plan elements throughout the entirety of each investment's lifecycle. The disciplined approach we deploy includes a comprehensive Hold-sell analysis (on a semi-annual basis), periodic bench marking against initial underwriting as well as measurement of performance against subsequent value- enhancement initiatives. All within the context of the competitive set in the market.
In the area of co-investment, NT's Principals have had the occasion to work with many of the well- established private equity vehicles, pension plans and alternative asset managers.