The Funds will focus on making
opportunistic and value-oriented investments in undervalued and
typically liquidity constrained property assets, loans and
corporate entities with substantial underlying property value,
predominantly in Western Europe. Patron focuses on identifying and
unlocking inherent value through investment in a broad range of
deal types in which it generally can acquire a controlling stake or
structure substantial control over the investment outcome. Patron
has a long track record of building value through the
repositioning, redevelopment and intensive management of real
estate assets and operational improvement of corporate entities and
of successfully realising this value at exit.
Property assets may be undervalued
in circumstances where the seller is experiencing severe liquidity
constraints and/or has other commercial or regulatory pressure to
sell troubled or non-core assets within a limited period of time.
There may also be lack of effective competition due to a shortage
of specific expertise in the local markets combined with a lack of
well-capitalised buyers who have the capacity to execute in the
required time frame. The assets themselves may be distressed due to
economic and market conditions, specific business situations or
lack of capital and adequate management. They may also be
undervalued due to lack of information or relevant transparency or
sector disfavour. While undervalued or liquidity constrained, the
properties may have other compelling attributes and fundamentals,
such as location, strong potential supply/demand characteristics or
a unique, competitive market position upon which Patron, as an
experienced investor and manager, can capitalise. Patron's large
team, broad skill-set and extensive experience enables it to
understand, invest in and manage corporate, debt-related and other
complex and unusual transactions that have real estate as core to
their ultimate intrinsic value.
The Funds will focus on
middle-market transactions that typically require equity
commitments in the range of €30 million to €90 million. The Fund
may also opportunistically invest in particularly attractive larger
transactions consistent with its investment strategy and which meet
its return objectives. The Fund will aim to invest in
non-competitive situations, originated through an extensive network
of long-standing relationships with local participants, financial
institutions, investment banks, private equity partners, local
advisers and agents.
The Funds' objective is to generate
superior, absolute and risk-adjusted returns through a diversified
portfolio of acquisitions. Investments are targeted with the aim of
generating a 17% to 22% gross IRR and a 1.8x to 2.2x gross equity
multiple on invested capital over a three to five year investment
horizon.
Proven
Experience >>
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