Use of Third-Party Co-Investment to Enhance Returns and Improve Diversification
Tishman Speyer often attracts third-party co-investors that invest equity capital alongside our investment vehicles at the property level. Such capital may allow our funds to invest in a larger number of assets, improving overall diversification, and in larger-scale assets than would otherwise be considered. We maintain broad relationships with major financial institutions, insurance companies, private individuals and institutional investors from around the world that seek direct equity placements.
At Tishman Speyer, we continuously strive to maintain our status as a global leader in sustainability. Our firm combines a long history of developing innovative sustainable projects in the US and abroad with an ongoing focus on sustainable building operations. With 60 million square feet of space certified by Leadership in Energy and Environmental Design (LEED®), BREEAM®, or HQE–Aménagement™, as of the third quarter of 2016, and with over 31 million square feet planned for certification in 2016, we remain at the forefront of sustainable building design, construction and operation. Our firm believes this commitment to sustainability serves both as a competitive advantage in attracting leading tenants and, as we seek to exit an investment, a means to maximize the pool of potential buyers.
Consistent with our integrated investment management approach, our regional asset management teams are focused on maximizing asset values. Key among manager duties are development of an annual asset plan and operating budget, and the responsibility for assuring that the goals are achieved. As part of this process, regional asset management teams lead regularly scheduled “Penta Plan” meetings for each asset, bringing together the five internal groups principally involved in executing the asset strategy: asset management, leasing, property management, accounting, and design and construction/engineering. At these meetings, asset-level operations and issues are thoroughly reviewed and addressed. Asset management teams are also responsible for continually analyzing financing, refinancing, conversion or disposition opportunities; preparing monthly and quarterly financial statements in conjunction with portfolio management; and communicating asset performance to lenders and co-investment partners.
Portfolio Management and Investor Relations
Through constant communication with regional asset management teams and ongoing financial analysis, our portfolio management teams actively manage the critical aspects of each fund’s investment portfolio, such as optimal hold periods and exit strategies; major capital improvement and leasing programs; overall fund liquidity; and the timing, type and amount of any financing that may be required. Their role is to maximize the portfolio performance. Maintaining transparency and open communication with investors is also a key priority. Portfolio managers are responsible for communicating regularly with investors about major portfolio events and for providing clear and timely investment and portfolio performance updates.