Investment Philosophy

At Signature Capital our investment philosophy is simple and is built around our understanding of property investment both at a strategic and asset level.

Identify & Acquire Opportunities: Signature Capital’s track record, expertise and market presence affords excellent access to deal flow, off market opportunities and distressed situations. We identify value through rigorous fundamental analysis of prospective investments to determine what we consider their worth to be, based on projected future cash flows and asset value potential. We have significant equity raising capability both domestically and abroad.

Invest with Proven Partners: Where appropriate we invest with proven partners that have established capabilities and expertise in a given sector and with a given asset type in order to maximise the returns and minimise the risk attaching to the investment. We have built up a significant network of relationships with private equity and institutional investors with expertise in specific areas of real estate investment.

Control Risk: Signature Capital has a conservative approach to risk with a strong ability to understand and manage complex investments. We control risk through detailed due diligence, close analysis of both the local market and asset specific attributes, and investment awareness of both the micro and macro market. Consequently, Signature Capital successfully navigated its way through the global financial downturn that affected all markets between 2008 and 2012 and were best placed to benefit from the resulting opportunities which subsequently arose.

Core-Plus & Value Add: Core-Plus investments provide investors with the opportunity to invest in moderate-risk real estate vehicles that provide moderate returns. However, these assets can also utilise a value added approach to some degree. Signature Capital seeks to add value wherever possible through the investment cycle of an asset by carefully analysing the deal from acquisition to disposal. We also implement detailed asset management programmes, identifying opportunities to add additional income flows, maximising the use of the buildings, tenant lease extensions and employing value driven asset management to maximise the return on the investment.

Appraising an Investment: There are a number of key factors when identifying potential investment opportunities. It is vital to understand the forces that effect the market, these include supply versus demand, the changing demographic profile, economic activity, affordability, property type, development potential, financing, and the exit strategy. Investment properties acquired will display the following key attributes:

• Core-Plus Class A or Class B+ assets that may require some value add enhancement such as repositioning or refurbishment.
• Properties with strong current or potential income growth over time.
• Purchase price on a rate per square metre basis that compares favourably with both replacement cost and a recent market comparable.
• Prime or strong secondary locations, including proximity to desired population catchments, transport infrastructure (both existing and proposed) and general services.