Investments | 777 Capital Partners
On behalf of our partners, we invest in assets that can be acquired at a discount due to market dislocations, identifiable and correctable impairments or where we see a value potential that is not anticipated by the market.
Our hands-on asset management approach and targeted value enhancement initiatives ensure limited return variability and produce strong economic assets. We cover the full spectrum of the real estate sector, looking at debt, equity and even PropTech private equity investment opportunities for our investment partners.
Innovative Living
We develop assets which cater to the continuously increasing needs and expectations of our society.
In consideration of the continuous socio-demographic changes and new expectations driven by the younger generations, we focused on addressing this market gap over a decade ago, making us pioneers in the innovative living sector.
With a continuously evolving society, urbanization and more mobile lifestyle, new residential concepts are more sought after than ever before. This concerns a broad range of residential assets, from student housing, micro apartments, serviced apartments and co-living. We develop and convert existing assets to offer community and increased well-being to tenants, while ensuring an efficient use of scarce land in metropolitan areas.
Key factors we consider for residential projects
Flexibility
Can we generate sustainable returns through catering to the ever more mobile lifestyles of the 21st century?
Community
Can we offer platforms and activities that promote human connection, which have become highly valuable in today’s fast-paced urban world?
Values
Considering the increased cost of living in cities, can we provide affordable products within close proximity to employment, entertainment, culture and education?
Technology
Can we save costs by streamlining processes such as leasing, maintenance, community building, marketing, apartment access through technological innovation?
Densification
Can we increase densification when we build or convert to become more efficient and generate higher yields?
Design
Can we implement efficient, flexible floorplans and well-designed interiors to cater to the residents’ overall experience and increase the value of our assets?
Our Approach
Innovative living is tailored to a the global community and young generation with continuously higher expectations. By bringing together convenience, flexibility and community, we cater to the needs and desires of the younger generations.
”Innovative Living will unstoppably change the residential sector over the next 50 years. Digital services, more flexibility and increased community thinking describe the new consumer demand. Core values are being created with excellent value enhancement potential.
Commercial
We apply expertise and local know how to enhance capital value, increase cash flow and reduce risk.
We target inefficiencies in the real estate markets, ranging from the actual structure, financing situation, daily operation or strategic use of the asset. We focus on special situations which require flexible, quick decision processes and / or a hands-on management approach to increase the asset’s fundamental value and cash flow. Our asset management experts can execute our outset business plans but can also flexibly adapt to changing market conditions, in close collaboration with the investment partners.
Value-Add
“Value-Add” is associated with moderate to high risk.
These properties often have little to no cash flow at acquisition but the potential to produce a significant cash flow once the value has been created. These assets often have occupancy issues, management problems, deferred maintenance or a combination of all three. Value-add investments typically generate double digit returns.
Opportunistic / Special situation
These investment strategies require years of experience and a team of experts to be successful.
Ground-up developments, acquisitions out of complex ownership structures, land development and repositionings are examples of opportunistic investments. Opportunistic investments typically generate higher annual returns.
Our Approach
Investing in private equity real estate has been a cornerstone of our principals over the past 30 years. We focus on identifying highly profitable investment opportunities, working with trusted best in-class local partners to execute our carefully and diligently designed business plans.
”Market knowledge and local experience are key determining factors for our investment decisions.
Off-Market Sourcing
Our investment team has substantial experience in asset origination across most real estate sectors.
We are able to identify unique off-market Value Add and Opportunistic investment opportunities in the DACH region, in-line with the investment requirements of our investors. During the acquisition stage, our investment team can support across the entire transaction process, including underwriting, due diligence, financing and deal execution. This offers our investment partners the flexibility to delegate only parts or the full process to us.
Our Approach
In today’s market, quite a significant share of real estate assets is only presented to a small circle of potential buyers. With our extensive network in the DACH region, we are uniquely positioned to identify and source assets for our partners. This service relates predominantly to Value Add and Opportunistic type assets.
”Access to an extensive sourcing network such as family offices and institutional investors is key to access high quality off-market assets.
How to invest
Depending on our investment partners expectations and requirements, 777 Capital Partners is flexible to accommodate most structuring solutions currently available.
Club Deals
Co-investments have become a popular way to access unique investment opportunities, offering detailed insights into the business plan and full transparency over fees.
Club Deal investment partners tend to be very savvy real estate investors who prefer to delegate to a General Partner for challenging projects. In this setup, they still maintain control, as Limited Partner majority consent is still required if substantial changes occur (e.g. earlier sale, change of strategy due to market changes).
Joint Ventures
Joint Ventures (JV) bring together two investing partners with complementary investments interests, expertise and resources.
JVs provide access to transactions of a size and scale which may be beyond the equity allocation capacity or strategy of an individual party. JV partners usually share equal parts of the equity. As equal partners in the JV, all decisions must be taken jointly.
Other
We are flexible to also accommodate other investors requirements.
Separately managed accounts, alternative funds, securitized products or even block chain tokens are possible. Please reach out to us to discuss any individual requirements you may have for yourself or your clients.
Acquisition Profile
Risk Profile
Core+ (with further value enhancement potential), Value Add, Opportunistic
Use Types
Retail with repositioning potential, residential and residential derivatives (e.g serviced apartments, student housing, co-living), office, hotel with repositioning potential
Locations
Cities in the DACH region with more than 100,000 inhabitants, selectively smaller cities possible
Investment Volumes
All-in costs of minimum EUR 25 m, selectively smaller investments possible
Transaction Types
Developments, Conversions, Repositioning's of Standing Assets, Distressed Situations, Portfolio Adjustments
Transaction Structures
Stand-alone assets, portfolios and loan purchases (NPL/SPL) possible
Investment Structure
Equity, equity-like investments, mezzanine
Deal Type
Asset or Share Deal
Contact
777 Capital Partners GmbH
Oberneuhofstrasse 3 | 6340 Baar | Switzerland
info@777capital.com