Investment Philosophy
“Price is what you pay. Value is what you get.” ― Warren Buffett
Our investment philosophy is built on value investing principles, placing the emphasis on Pricing rather than Timing. It is imperative for us to pay less than what we expected to get, with an adequate margin of safety. We adopt a data-driven approach to formulate investment strategies and a bottom-up approach to evaluate underlying economics of each investment opportunity. While we may sell any properties for the right price, we only buy properties that we are comfortable to hold for over 10 years.
“Investment is most intelligent when it is most businesslike.” – The Intelligent Investor, Benjamin Graham
We view every investment property as a business. We actively manage and maintain an asset for it to stay desirable and engage with tenants and other stakeholders to maximize value for the community.
Our criteria
We focus on market segments that are temporarily out of favor due to market dislocations but at the same time going through favorable demand-supply dynamics as driven by infrastructure, policies and demographic trends.
Therefore, properties that we like are typically producing a high income yield and have a low unit price. High cashflow allows us to be patient and wait for an opportune time to exit and the low entry basis is prohibitive to new supply. In addition, we like exit optionality to serve as downside protection.
As for development projects, we like segments that target the local market and are supported by long-term demographic trends. Our investment base case is always built on local demand while international distribution is considered as upside scenario.
Intensive research
““Value investing is at its core the marriage of a contrarian streak and a calculator.” – Seth Klarman
Given our contrarian approach to look for properties that are temporarily out of favor, it is of utmost importance for us to avoid falling into value-traps.
In formulating investment strategies, we adopt a data-driven approach to identify market dislocations where inefficiencies of capital market cause the market price to be substantially below the properties' long-term value.
In assessing individual opportunities, we adopt a bottom-up approach to evaluate the underlying economics of each opportunity to ascertain adequate margin of safety.
