Real Estate Strategies

Each strategy created by Stoneweg is based on our ability to detect and take advantage of market conditions; first mover advantage within early stage real estate cycles is an important part of how we conduct business.

Each strategy created by Stoneweg is based on our ability to detect and take advantage of market conditions; first mover advantage within early stage real estate cycles is an important part of how we conduct business. Ours is a dynamic bottom-up approach to asset selection, leveraging on experienced local Stoneweg teams, with deep networks, who are responsible for sourcing and securing assets as well as managing the entire investment lifecycle through disposal.

Spanish
Residential
Development

Sector
Residential (2/3)
Opportunistic (1/3)

Return Strategy
Capital Gain

Target IRR
15-20 %

US Value–add
Residential
Income

Sector
Residential
 

Return Strategy
Value-Add, Income

Target IRR
10-15 %

Real Estate
Bridge
Financing

Sector
Short Term Loans
 

Return Strategy
Income

Target IRR
11-13 %

Swiss RealTech
Commercial
Income

Sector
Commercial

Return Strategy
Value-Add, Income

Target IRR
10-12 %

Italian
Distressed
Situations

Sector
Opportunistic

Return Strategy
Capital Gain

Target IRR
15-25 %

European
Diversified
Opportunities

Sector
Diversified

Return Strategy
Capital Gain, Income

Target IRR
10-15 %

Many Strategies,

One Philosophy

Core Strategies

Italian Distressed Situations

Stoneweg targets portfolios of non-performing loans or assets where seller is in an urgent need of capital restructuring, on a 1st lien basis, focusing on quality assets in distressed situations. Our local team manages judicial and extra-judicial process, restructuring the assets in order to execute pre-defined exit strategies.

  • Sector: Opportunistic
  • Subsector: Direct acquisitions, Non-performing loans
  • Return Strategy: Capital gain
  • Target IRR: 15%-25%

Since the launch of this strategy in 2015, as at june 30, 2019, Stoneweg has participated into 55 assets, with a total investment of € 685 million. The allocation into distressed assets encompasses income generating assets, residential developments, NPL, bridge financing, as well as the break-up and sale of a substantial real estate complex in the center of Milan.

An example of this strategy: Porta Vittoria

 

Swiss RealTech Commercial Income

Digitalization of the economy is changing consumption patterns in the private and professional spheres, impacting the demand and pricing of for real estate assets. The strategy focuses on commercial assets at the forefront of these change.

  • Sector: Commercial
  • Subsectors: Flexible Offices, Logistics, Healthcare, Entertainment, New Hospitality Format, Science & Technology
  • Return Strategy: Income
  • Target IRR: 10% – 12%

Since the launch of the strategy in 2017, as at March 31, 2019, Stoneweg had invested a total of CHF 115 million into several commercial value-add and income opportunities including a healthcare asset.

The principal mandate, Varia Swiss RealTech Properties AG, is anticipated to be listed on the Bern Stock Exchange.

An example of this strategy: iLife – Etoy

 

Real Estate Bridge Financing

Investment in senior secured short-term loans backed by Real Estate Assets with a focus on the Spanish market. An opportunistic approach is taken to other countries, to include: Switzerland, France, Italy and Germany.

  • Sector: Short Terms Loans (1 – 3 years)
  • Regions: Barcelona, Madrid, Milan and secondary cities
  • Return Strategy: Income
  • Target IRR: 11% – 13%

Stoneweg has provided bridge financing, backed by real estate assets, across a diverse and wide range of assets in Europe.

The original, core, market for this strategy was created through demand from local partners within the Spanish market, where approximately two-thirds of our loans have been granted.

Since the launch of this strategy in 2017, as at June 30, 2019, Stoneweg had deployed over seventy loans across Europe to include Italy, France, Germany, Spain and Switzerland, for a total value of EUR 410 million.


An example of this strategy: Byblos

 

US Value–add Residential Income

Multifamily, value-add, residential income strategy, targeting low-to-medium income occupiers. Focusing on Metropolitan Statistical Areas (MSA) and in suburban areas with constrained offer of apartments.

The strategy is focused on providing a steady long-term income profile (cash on cash), combined with the opportunity to increase the capital value of the underlying asset through pre-defined improvements works. The asset class benefits from strong tenant demand through the economic cycle based on the needs of upwardly mobile individuals during expansionary phases and the desire to down-size / control costs through economic contractions.

  • Sector: Residential
  • Subsector: Multifamily, Low-to-Medium income
  • Return Strategy: Value-Add, Income
  • Targeted IRR: 10%-15%, Yield of 6% – 8% pa

As at June 30, 2019, a total of $795 million invested over 65 deals, encompassing 10,000 units acquired. The largest mandate, Varia US Properties AG, is listed on the Swiss Stock Exchange (SIX: VARN) since December 2016

An example of this strategy: Rolling Hills

 

Spanish Residential Development

Stoneweg leverages local networks to source and secure attractive, unfinished, off-market products. Focus is within key economic centers of Madrid, Barcelona, secondary cities and a complementary interest in the Mediterranean coast.

  • Sector: Residential (> 2/3) Opportunistic (< 1/3)
  • Regions: Barcelona and Madrid (2/3), Mediterranean Coast (1/3)
  • Return Strategy: Capital gain
  • Targeted IRR: 15% – 20%

Since the launch of the strategy in 2015, as at June 30, 2019, Stoneweg in Spain had invested over €1.4 billion into development projects. The approach is towards key urban centers including Madrid, Barcelona and the Mediterranean Coast. The aim is to target residential developments (2/3) and other opportunistic transactions (1/3).

See our residential dedicated website, Stoneweg Living

An example of this strategy: Skyline project

 

European Diversified Opportunities

The European real estate market is characterized by considerable diversity in economic, legal, demand and supply drivers, with structural changes in Italy and Spain providing considerable opportunities for investors looking to capitalize in unique buying opportunities.

This strategy is based on a diversified portfolio of real estate and real estate backed opportunities across capital gain and income strategies in the Spanish and Italian markets.

  • Sector: Diversified
  • Regions: Initially Spain and Italy
  • Return Strategy: Capital Gain, Income
  • Targeted IRR: 10% – 12%

The principal mandate, Varia Europe Properties AG, was listed on the Bern Exchange (SIX: VARE) in 2018 having invested an initial € 17.1 million into fourteen projects across all Stoneweg strategies.

As at 30 June 2019, the portfolio comprised 46% developments, 14% break-up & sale, 12% income assets, 19% bridge financing backed by real estate assets and 9% non-performing loans. Geographically, the portfolio was split 53% Spain, 47% Italy.

An example of this strategy: Project V