Each of Northam Realty Advisors’ real estate investment funds has exceeded its minimum return target.

Fund Performance Summary

Northam’s approach to real estate private equity investing provides a select group of international property investors with access to sophisticated real estate investment opportunities that have delivered consistent top quartile performance.

Northam, together with its senior management team, invests significant capital alongside that of the private equity funds raised from our investors. Results are important, both to our clients and to us as owners, advisors and managers. Northam delivers consistent long-term value and above-benchmark returns through strict adherence to an investment strategy, which is focused on

• portfolio diversification,
• reduction of competition,
• investment structuring, and
• focused exit strategies.

Northam combines its strategic investment approach with in-house service capabilities in high-quality asset and property management, real estate brokerage and corporate administrative services, in order to maximize investment performance.

Portfolio diversification
Reducing concentration risk through diversification is a major tenet of Northam’s private equity investment approach. By diversifying geographically, by asset class, and through multiple tenancies, we reduce risk while maintaining our ability to exceed targeted investment return thresholds.

Reduction of competition
Northam’s senior management team has extensive relations with the most influential participants in the North American real estate industry. This network facilitates access to top-tier real estate opportunities. It’s an intelligence gathering resource that uncovers “about-to-be-marketed” and “off-market” deals. Accessing potential transactions before they become broadly marketed often results in better pricing and more attractive terms.

Investment structuring
Northam’s investment structuring techniques serve to enhance returns, improve liquidity, limit risk and maximize operating capability. The five key elements to our approach involve

• Controlling interest,
• Prudent leverage,
• Alignment of interest,and
• Due diligence.

Controlling interest - Northam always seeks to acquire outright direct ownership of an asset or to make investments that are expected to result in a controlling interest. This provides us with the final say in critical asset management activities including

• financing,
• disposition,
• leasing, and
• asset and property management.

Prudent leverage - Although Northam manages the capital structure of its investments to maximize returns, each investment’s level of debt financing can vary in light of specific cash-flow characteristics, anticipated hold period and expected degree of appreciation. As value is created and assets become stabilized, Northam seeks to refinance assets to return equity to investors and improve the IRR. On average, leverage in the 55%–70% range is being utilized.

Alignment of interest - Where appropriate, Northam together with its senior management team invests significant capital in its real estate private equity activities. Additionally, Northam customarily receives incentive compensation, a process that completely aligns all its interests with those of the firm’s investor clients.

Due diligence - Northam has developed a thorough due diligence process which identifies both potential liabilities and hidden value. The due diligence process is executed by experienced Northam staff and involves a six-step process:

• base-rent verification and security;
• recovery revenue verification;
• review of financials;
• analysis of projections;
• environmental, mechanical, electrical and structural review; and
• preparation of a summary of due diligence findings.

Focused Exit Strategy
Northam focuses on making investments in high-quality assets that appeal to a wide group of potential buyers. Our exit strategies are always conceived with a range of possible outcomes, including

• private one-off sales,
• portfolio sales,
• mergers with or dispositions to public entities, and
• syndication to international retail investors.