Strategies

‘IF YOU ASK ME THE INVESTMENT PERFORMANCE IN THESE FEW YEARS – WHICH COMPANY MAKES ME HAPPIEST? IT’S PHOENIX PROPERTY INVESTORS’

SIMON KWOK,
CHAIRMAN AND CEO OF
SA SA INTERNATIONAL HOLDINGS LIMITED

OUR STRATEGIES

Our goal is to build a compelling portfolio of real estate assets that generate attractive risk-adjusted returns. To achieve this, we focus our efforts in areas where we believe we are uniquely able to leverage on our local knowledge, expertise and relationships. And then use the most appropriate vehicles to achieve consistent results for our investors:

OPPORTUNISTIC

We have been investing in opportunistic real estate in Asia since 2002. This has provided investors with strong returns in terms of equity multiple and IRR while minimizing downside risk. We seek to acquire prime properties at below market prices through complex strategies such as site assemblage, special situations, and off-market private sales. We use our fully integrated team to add value to the properties – by changing the approved use for the property, renovation, repositioning and re-leasing or complete redevelopment. We have expanded our opportunistic investments across Phoenix’s entire Pan-Asian footprint.

CORE/CORE+

We launched our first Core/Core+ investment vehicle in 2015, focusing on Grade-A properties in Hong Kong and Shanghai. This strategy seeks to use Phoenix’s investment capabilities to acquire prime properties and then utilize the Asset Management and Project Management teams’ expertise to actively manage the buildings with the goal of delivering market-beating returns over the medium to long-term.

DEBT

We entered the real estate lending space in 2014 after identifying significant opportunities in our identified investment markets. We lend to credible borrowers who also have a strong track record of real estate development in their home markets. Frequently, Phoenix is able to leverage its integrated team to better understand the underlying collateral and the borrowers’ business plan, while giving value-added feedback to the borrower and enhance their end product. Phoenix therefore becomes a preferred value-added partner for developers.

OUR INVESTMENT APPROACH

We are a rigorous and disciplined value-oriented investor. Through our fundamental analysis and thorough understanding of direct real estate markets across the Pan-Asian region, we target only strategically appropriate investment opportunities and then take a considered institutional approach to investing, guided by several key principles:

SELECTIVE ACQUISITION

We are continually evaluating and reassessing our target markets to determine the geographies, sectors and investment themes that we believe will produce optimal returns on a risk-adjusted basis.

ACTIVE ASSET MANAGEMENT

For every asset, we develop a tailored plan that seeks to maximize its performance, creating potential and unlocking intrinsic value.

RISK MITIGATION

We seek to manage risk through prudent use of leverage, effective capital management, retaining a diversified portfolio of assets and collaborating with specialist partners for large or complex developments.

DISCIPLINED EXIT STRATEGY

We believe that identification of multiple exit strategies prior to each acquisition and continual evaluation of market dynamics, impacting such strategies, are fundamental to realizing value in a timely manner.

OUR PORTFOLIO

We have assembled a well-diversified portfolio of assets in various real estate sectors and locations.

Notes
This diversification allocation percentages are based on invested and allocated equity as of December 31th 2017. The allocation percentages are subject to change and may differ significantly from the allocation percentages set forth above. This allocation descriptions are solely to illustrate the types of investments that have been made by Phoenix Property Investors and do not in any way constitute projections for future allocations. There can be no assurance that future projects of Phoenix Property Investors will be able to achieve these allocations or share these characteristics.