Which competitive advantages do you consider to be the most important ones? And anyway, can I get acquainted with the list of requirements that you put forward to the acquired real estate?
REAL ESTATE INVESTMENT PHILOSOPHY
Ÿ Dynamic and “hands-on” management team
At Zabercoin we believe that successful real estate investing requires first-hand knowledge
and experience of the real estate itself. Zabercoin believes in a Top-down value investing
approach and thus first assess the EM country and macroeconomics for investing before
getting involved in the project itself. Value investing has outperformed all other investment
styles (momentum, size, quality etc) over time and forms the foundation for our investment
decisions.
The Zabercoin management team demonstrates specialised property development
expertise and has excellent knowledge of the changing real estate market environment with
extensive experience in large-scale, complex transactions, both locally and globally.
Zabercoin maintains a “hands on” asset management philosophy. The team is involved in
all capital investment decisions and is expected to interact regularly with property managers
and other service providers protecting the interests of our investors.
We believe superior cash flow and long-term returns can be achieved through active,
“hands-on” strategic asset management. Zabercoin combines a “hands on” investment
strategy with an experienced team to maximize results for our investors.
Ÿ Investor focus
Our approach to investment management focuses first and foremost on the Zabercoin
investor, and integrates the experience and resources of the team managers to maximize
investment results.
We provide investment opportunities for both institutional and individual capital. Therefore,
whether you are an institutional or a private investor, Zabercoin has the investment option
that will meet your needs.
Our team managers maintain focus and discipline when carrying out investment plans
allowing them to reassess investment strategies in the light of both changing market
conditions and evolving investor objectives.
Our investment philosophy focuses on research and analysis as well as added value to the
investor.
· Research and analysis
We will be guided by the application of forecasts and thorough qualitative and quantitative
research and analysis of relevant data. We believe research provides a disciplined and
consistent framework for making informed investment decisions.
All investments are thoroughly screened before and after investment to assess their
potential. We understand real estate as a financial asset, and apply techniques to analyse
risk, and to identify and take advantage of market mispricing.
Investment strategies are monitored annually and reviewed as market conditions evolve.
· Added value
We strive to add value at each stage in the investment process which targets under-priced
markets expected to maximise performance for a given level of risk.
The team believes in a top-down asset management approach. This means that a variety of
economy-wide phenomena (macroeconomics) such as inflation, price levels, rates of
growth and unemployment and the growth domestic product (GDP) of a country will be
thoroughly evaluated before considering any prospective project. The gross domestic
product (GDP) is one of the best ways to measure a country's economy.
We strongly believe in a value investing style where the interests of the company and the
investor always take preference in decision-making.
Good asset selection, and active management are fundamental drivers of investment
performance. Real estate investment is unusual in that value can be added after purchase,
and we seek to maximise these opportunities.
· Emerging market focus
Emerging markets are defined as economies with low to middle per capita income and are
usually considered fast-growing economies.
The core business of Zabercoin is to focus on the acquisition of well-located and lucrative
properties in emerging markets (EM) that will generate significant income and escalate in
value.
Although the focus of Zabercoin management will remain with the acquisition of property
within emerging markets, other profitable and lucrative projects outside EM will also be
considered and accommodated in its investment plan.
All properties acquired in both EM and other markets should at least have:
· favourable long term prospects, and
· sustainable competitive advantages
The key to the success of Zabercoin lies in obtaining good properties that can be bought at
attractive prices and holding them over long periods of time. Our goal is to beat the market
over time. We believe emerging markets are well placed. For example, as these economies
and real estate markets improve, buyers enter the market and drive up acquisition prices.
· Competitive advantage
In a nutshell Zabercoin offers a significant competitive advantage to the potential investor
based on key drivers:
· Dedicated and proficient management team
· Integration of our quality research outputs into the investment process
· Proven track record in investment management
· Responsible investing
· Standardised processes
· Internal control systems and integrated risk management
Since real estate investment generally represents a long-term investment horizon, this
means that our investors can rely on Zabercoin's commitment from the beginning, taking
responsibility for the full life time of the investment.
· Corporate Social Responsibility (CSR)
The Zabercoin management team is convinced of the growing importance of sustainability
in terms of being able to offer investors a good return compared to the market.
In pursuing Corporate Social Responsibility (CSR), a company makes conscious choices to
find the right balance between the economic, social and environmental aspects of all
internal and external business activities.
Being a responsible investor means we are committed to incorporating key principles of
Corporate Social Responsibility (CSR) into our organisation:
· Responsible investing – At Zabercoin we strive wherever possible to reduce the
environmental impact of the assets we manage and accentuate sustainability in our
communication with investors.
· Ethical business conduct – We pursue CSR-driven decision-making and seek
transparency throughout all our business operations.
· Sustainable operations – We embody the change we wish to see in the
world by creating the best possible working environment and conditions for our
employees and seek to reduce the environmental impact of our business operations
as much as possible.
· Commitment to society – We strive to contribute to society by donating to and
sponsoring social causes as a company, and encouraging our staff to do likewise.
· Focus on green energy for the environment in housing projects – one of Zabercoin's
team members wrote a thesis on renewable energy in real estate for his Master's
degree at Tshwane University, Pretoria, South Africa.
VALUATIONS AND POTENTIAL IN EMERGING MARKETS (EM)
An emerging market is defined as an economy with a low to middle per capita income and
is considered to be a fast-growing economy. On an earnings yield basis, which speaks
more to the equity side of local listed property, the South African listed property market
currently looks marginally cheap, as the current earnings yield is above average. We refer
to this as the “equity side of property”, as most of the commonly accepted valuation metrics
for equities, are closely linked to underlying earnings.
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