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The success of urban real estate investment begins with the identification
of the investment candidate and ends with the realization of value
through an appropriate exit strategy. WPV II's investment process
will consist of the following steps, based on the substantial investment
experience of the General Partners in this investment space:
- Identification of Investment Opportunities - The General
Partners anticipate receiving and reviewing numerous investment
opportunities as a result of their proactive transaction sourcing,
their extensive network in this field and the extensive contacts
of the Advisory Board.
- Screening Investment Opportunities - All investment opportunities
will be initially screened by staff, who will compare each opportunity
against the WPV II's investment strategy and investment criteria.
Opportunities of interest will be evaluated by the General Partners
and Advisory Board.
- Rigorous Due Diligence - Once an opportunity has been
cleared for review, the staff will undertake extensive due diligence,
including hiring outside lawyers, accountants, and relevant specialist
advisors, to achieve a thorough understanding of the local target
market, comparable properties, growth potential, as well as the
strengths and weaknesses of the potential project.
- Negotiations - The General Partners will be integrally
involved in negotiations and will involve the expertise of Special
Limited Partners and Advisory Board members on an as needed basis.
- Financing Transactions - The General Partners will utilize
the projected financial performance to design a recommended capital
structure for the investment. The General Partners have significant
experience in financing development projects, drawing from their
partnership with WDG Ventures who have structured over $750 Million
in urban real estate projects.
- Investment Approval - After due diligence, negotiations,
and financing arrangements are completed, the General and Special
Limited Partners, and Advisory Board will provide its final authorization
to complete the investment transaction.
- Management - The General Partners and Advisory Board
will actively oversee and assist in operations and implementation
of the development plan.
- Exit Strategy - Projects will have an average holding
period of approximately three years before attaining the potential
for profitable exit. This period will include project identification
and finalization, construction and possibly leasing. The Fund
will have the flexibility to operate projects until such profitable
exit cycles occur. WPV II's primary exit strategy will be to finance
out its equity to long-term institutional holders. The type and
scale of projects in which WPV II intends to invest should allow
for capital market solutions as part of the exit strategy, including
direct institutional sales, asset securitization, and REIT's.
Secondary opportunities for exit will be sales to the minority
developer, local syndications or possibly the General Partners.
WPV II has executed these strategies previously through its work
with WDG Ventures. The anticipated realization time horizon for
the Fund would be six to seven years. This would allow a three-year
development cycle for projects started in the third year, plus
an extra year or so to fully execute an attractive workout strategy.
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