Strategy-Driven Legacy Investment
Multi-Family Platform
Rationale:
In 2015, Lotus Capital identified an opportunity to invest in core-plus multi-residential properties located in emerging neighbourhoods across Metro Vancouver. This legacy strategy investment platform targets levered returns of 7-9% driven by rental income growth through remodelling, renovation and long-term capital appreciation using moderate leverage, with upside of 10-12% driven by refinancing and disposition activities.
In 2015, Lotus Capital identified an opportunity to invest in core-plus multi-residential properties located in emerging neighbourhoods across Metro Vancouver. This legacy strategy investment platform targets levered returns of 7-9% driven by rental income growth through remodelling, renovation and long-term capital appreciation using moderate leverage, with upside of 10-12% driven by refinancing and disposition activities.
Realization:
Through the first six months of 2016, Lotus Capital acquired six properties comprising 174 units, and implemented property-level strategies to renovate them on turn-over. By 1Q17, Lotus Capital had turned over 59 units and renovated 48 of them to drive increased rents and value appreciation.
Through the first six months of 2016, Lotus Capital acquired six properties comprising 174 units, and implemented property-level strategies to renovate them on turn-over. By 1Q17, Lotus Capital had turned over 59 units and renovated 48 of them to drive increased rents and value appreciation.
Returns:
Through its acquisition and value-add management, Lotus Capital is deploying capital with strong performance to date:
Through its acquisition and value-add management, Lotus Capital is deploying capital with strong performance to date:
|
$34M of Equity Invested |
27.2% Levered IRR (unrealized) |
1.2-Year Average Hold Period |
