Burtonwood provides our investor partners with access to high-quality real estate investment opportunities with differing levels of risk and return profiles.
Core property acquisitions of income-producing assets are made on the fundamental attributes of location, building functionality, credit profile of occupiers and tenure. Acquisition of existing quality real estate assets is a competitive process, but the opportunity for such assets lies in the imperfection of real estate markets and the ability of the Burtonwood team to assess true market value and mispricing.
This type of investment opportunity is for existing assets that require physical upgrade combined with active asset management, a dedicated focus to return or regenerate such assets to a core status where they generate regular and sustainable income returns. The opportunity in this class lies in the discipline of stock selection, and the relationship between return-on-risk relative to pricing.
While other managers often focus on immediately making a realisation after undertaking the value add phase, Burtonwood consciously establishes standalone “single-asset syndicates” that allows our investor partners to determine their preference on exit timing. By creating high quality assets, Burtonwood provides investors the flexibility to hold for the medium-to-long term investment period to yield a tax-efficient hybrid return.
Burtonwood Investment Partners have identified that due to the highly-sought nature of core income-producing commercial property assets, the best commercial property investments are often held beyond the development phase by the original equity participants. This involves the original committed equity taking a hybrid return approach to investing, where an increased level of risk and return is attributed to the development phase, and a subsequent period of lower risk is attributed during the hold phase when income is generated.
By partnering with our extensive network of established and recognised market participants, Burtonwood offers the opportunity to “get in on the ground floor” of some exciting opportunities that are de-risked in the development phase through partnering with reputable developers, tenant pre-commitment, debt security, and construction pricing mitigation.
Burtonwood Investment Partners like making investments where the fabric of the real estate, the land and buildings, are integral to the business of the occupier. This includes sectors such as healthcare, aged care, leisure, food & beverage, self-storage, convenience retail and childcare. Many of these sectors are being disrupted heavily by technological innovation and advancement, regulated frameworks, and challenging and increasing licensing regimes.
Burtonwood seeks to partner with the very best operators and occupiers, either in traditional landlordtenant arrangements or ground lease structures, and via sale and leaseback offerings to gain exposure to this sector of real estate opportunities.
To provide investors with a breadth of risk and return investment opportunities, Burtonwood Investment Partners originates develop to sell development opportunities (e.g. residential) where an attractive return for risk is identified. Responding to investor preferences in recent times, Burtonwood has sought to complement the longer term opportunities with shorter timeframe, develop to sell opportunities, where investors have an opportunity to recycle their equity in shorter timeframes of approximately 2-3 years.
