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Conservative Approach to Investing
Preston Capital's real estate philosophy is generally guided by the fundamental premise that future cash flow, not "trophy status" or fashion, ultimately determines the value of an asset. Preston Capital believes that rigorous due diligence, the use of conservative assumptions in projecting cash flows, and careful assessment of possible downside scenarios are the best methods for consistently achieving its objectives.
Prudent Use of Leverage
Although Preston Capital aggressively manages the capital structure of its investments, it has always adhered to a policy of prudent leverage. By virtue of its close relationship with financial institutions, Preston Capital has been able to obtain financing arrangements on the best terms available in the market in order to provide each transaction with greater protection in a downside scenario.
Anticipation of Trends
Much of Preston Capital's success can be attributed to anticipating promising new investment themes before they become generally appreciated. Preston Capital was among the first to identify U.S. investors, to make major investments in international real estate.
Theme-Oriented Investments
Preston Capital is constantly monitoring real estate markets to identify and develop the most promising investment themes based on asset class, geography or targeted groups of sellers. This allows the firm to rapidly develop expertise within special areas, to react quickly to potential opportunities and to develop strong relationships with key partners in that area.
Institutional Quality Assets with Temporary Flaws
Preston Capital has based its investment strategy on identifying well-located institutional quality properties that suffer from temporary or correctable flaws in their tenancy, physical attributes, capital structures, market position and/or management. By exploiting the pricing inefficiencies inherent in assets of this nature and employing intensive asset management to correct the identified flaws, Preston Capital can reposition the assets for subsequent sale to institutional investors at premium pricing.
Focus on Exit Strategies
In evaluating any investment opportunity, one of Preston Capital's primary considerations is the potential exit strategy. To that end, the firm focuses on making investments in high quality, well-located assets that should appeal to a wide group of subsequent buyers.
Hands-On Management Approach
Preston Capital believes in “hands-on” management approach at the property level. Preston Capital uses its asset management team extensively in its investment analysis process and specifically seeks out investment opportunities where it can leverage the skills and expertise of its asset management professionals. Additionally, Preston Capital seeks to partner with local real estate operators who have specific knowledge and insight into local real estate markets or asset classes. As a result, our investment strategy will continues to be driven by the unique market insight and the extensive relationship networks of our seasoned management team.
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