Colonnade Properties current business strategy is to maximize returns through a combination of current income and capital appreciation. There are 3 platforms through which Colonnade makes investments.
In each of these programs, Colonnade seeks out opportunities which offer outsized yields relative to the underlying risk.
FEE SIMPLE ACQUISITIONS
- Colonnade targets assets that are underperforming as a result of current economic and market conditions, yet have strong long-term prospects.
- Acquisitions can take the form of equity, joint-venture equity and preferred equity investments.
- Valuation methodologies are based on long-term real estate fundamentals.
LOAN ORIGINATION
- Colonnade originates new first and mezzanine loans which in many cases will include equity participation features.
- Colonnade can also originate preferred equity positions to “fill the gap” based upon attractive valuations.
DEBT ACQUISITION
- Colonnade will acquire outstanding debt at significant discounts from financial institutions and private equity funds.
- Investment returns are based upon repayment at maturity with additional upside from taking control of the underlying asset.
