Our Pipeline

 

SafeGuard is constantly exploring strategies and opportunities to create products that will deliver high returns to our investors through fund structures and discretionary mandates. The Investment we are focused on are:

European Student Accommodation

What makes Student Accommodation the ideal investment in uncertain times:

 

  • Mainstream, highly-investable real estate asset.

  • Surge of global middle class and mobile students seeking quality education.

  • Domestic student numbers stronger in recessionary conditions when unemployment increases.

  • Most defensive real estate asset class, and has low correlation to the traditional real estate asset sectors;  Provides good property portfolio diversification.

  • Commodity like assets with sustainable, predictable revenues/cost/returns.

  • Low levels of supply in many markets.

  • Completed projects have strong appeal to institutional investors.

  • UK degrees popular because of the bachelor system, and the general attractiveness of English speaking education.

  • Future demand secured.

 

SafeGuard’s Key Investment criteria for student accommodation:

 

  • Significant mismatch between supply and demand for student accommodation because it ensures a low level of competition and therefore sustainable returns.

  • Number of students living in purpose built student housing is small (low provision rate); This secures high demand for many years into the future.

  • Low land acquisition cost because it results in higher profitability and an increased capital gain.

  • Availability of sites with proximity to higher education campuses because it creates high occupancy and good price levels

European 4-star and Luxury Hotels and Branded Residences

What makes a value-add strategy in European hotels and branded residences a great investment when increasing interests are expected?

 

  • Sought-after and highly-investable real estate asset.

  • Surge of global middle class and improving European economies contribute to an increase in travel to European gateway cities.

  • Low-yielding core real estate strategies suffer capital losses when interest rates rise; value-add strategies provide investors with a return cushion protecting them from capital losses.

  • Relatively liquid real estate asset class that benefits from improving economic conditions in a rising interest rate environment; Provides excellent addition to a core/core+ strategy.

  • Commodity like assets with sustainable, predictable revenues/cost/returns.

  • Low levels of new supply in prime markets.

  • Completed projects have strong appeal to institutional investors.

  • Tourist and business traveler in-flows from Asia into the prime gateway cities of Europe are expected to increase for the next decade.

  • Future demand secured.

 

SafeGuard’s Key Investment criteria for European 4-star and luxury hotels and branded residences:

 

  • Selection of European gateway cities and prime locations only that benefit from a combination of tourist and business travelers.

  • Mismatch between supply and demand for high-end hospitality assets because it ensures high occupancy levels and room rates generating sustainable returns.

  • Opportunity to acquire sites in prime locations that will increase in future value, and can deliver high profitability and increased capital gains.

  • Ability to benefit from management economies of scale by combining hotels and branded residences within short proximity as it generates incremental profitability.

Asian  Hotels

What makes our development/re-development strategy in Asian Hotels a great investment in emerging markets like the Philippines and Indonesia?

 

  • Sought-after and highly-investable real estate asset.

  • Surge of regional middle class with a strong desire to travel.

  • Large domestic markets with strong economic growth, long travel distances and some of the world’s biggest budget airlines expanding across these markets.

  • Proven execution of strategy with experienced local partners.

  • Low-yielding core real estate strategies suffer capital losses when interest rates rise; whereas a development/re-development strategy provides investors with a large return cushion protecting them from capital losses.

  • Relatively liquid real estate asset class that benefits from emerging market growth and the growing tourist and business domestic and intra-regional travel; Provides excellent addition to a core/core+ strategy.

  • Commodity like assets with sustainable, predictable revenues/cost/returns.

  • Low levels of new supply in large, fast growing markets.

  • Completed projects have strong appeal to institutional investors.

  • Economic growth exceeding that in any other region globally. Tourist and business traveler into and across the core markets to increase strongly for the next decade.

  • Future demand secured.

 

SafeGuard’s Key Investment criteria for Asian hotels:

 

  • Focus on the two largest and most open South-East Asian markets only that benefit from a combination of tourist and business travelers.

  • Mismatch between supply and demand for high-end hospitality assets because it ensures high occupancy levels and room rates generating sustainable returns.

  • Opportunity to acquire sites in prime locations that will increase in future value, and can deliver high profitability and increased capital gains.

  • Ability to benefit from management economies of scale across high-growth Asian markets and transfer of best practice across the portfolio driving increased profitability.

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