The foundation of In-Rel’s investment program is to continue to scale its asset management platform across a growing portfolio. We seek to grow our office and retail portfolio both within and outside of our current geographic footprint with a value-added orientation, targeting assets that can be acquired at a substantial discount to replacement cost and which provide opportunities to create and unlock further asset value by proactive and hands-on management. To identify attractive opportunities within our target office and retail asset classes, we rely on our unique core competencies, which consist of broad and in-depth real estate operating experience with private equity and capital markets expertise, in transaction sourcing, underwriting and execution, as well as asset operation, management and disposition. The company’s investment approach focuses on fundamental real estate analysis and considers factors such as the macroeconomic environment, the direction of the business cycle and local real estate market conditions. Our investment underwriting begins with the belief that the target property is a quality asset, that its underperformance can be turned around and that substantial value can be created and sustained. In-Rel’s primary investment objective is to create and maintain a balanced portfolio of office and retail assets – in terms of asset “maturity”, geographic spread and tenant base – that enables us to generate superior risk-adjusted returns.
For the foreseeable future, as a result of current market conditions, we expect to deploy our capital through the acquisition of office and retail properties at attractive risk-adjusted yields. Our underwriting includes a focus on certain financial metrics like stressed in-place cash flows, debt service coverage ratios and loan-to-values, as well as qualitative analyses on property condition and vintage, replacement cost and the property’s market and sub-market fundamentals. In pursuing investments with attractive risk-reward profiles, we incorporate our views of the current and future economic environment, assessment of the risk-reward profile derived from the asset’s underwriting, including taking into account relative valuation, supply and demand fundamentals, financing environment and overall liquidity in the marketplace. Each prospective investment undergoes a rigorous underwriting process in order to determine the risk-return profile of the opportunity and the appropriate pricing and structure for the prospective investment.