Investment Strategies

SILVERTON Investmentmanagement

Custom Investment Strategy

Custom Investment Strategies

Silverton offers investors access to various investment opportunities such as real estate opportunities and credit situations. Our in-depth expertise in both market areas gives our investors access to investment opportunities off the beaten track, such as the purchase of distressed real estate. In this context, Silverton is one of the few asset managers in Germany to hold a BaFin license to provide payment services.

The pursuit of clearly defined strategies, a systematic and transparent presentation for the investor as well as our return-oriented approach are at the heart of our actions. With our know-how in real estate and debt financing investments, we see ourselves as your first risk manager and your trustworthy and professional contact partner.

Active value creation

The return on real estate investments is made up of three potential income components: a positive market development that brings rising prices (passive value development), a regular return flow through rental income, and active measures aimed at deliberately initiating an active increase in the value of the property. Our investment platform offers a range of investment opportunities. Depending on the risk class, from traditional Core Plus Strategies, which focus on stabilized, yield-oriented investments, to opportunistic approaches.

Co-Investment and entrepreneurial commitment

Silverton is interested in assuming a portion of the real estate investment as a co-investor and thus aligns its interests with that of the main investor.

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CORE PLUS STRATEGIES

Silverton Core Plus Strategy includes investments in all types of commercial real estate in good to medium locations.
As a rule, a buy-and-hold strategy with a holding period of more than ten years is applied with the aim of enabling a continuous distribution at the investor level. Value increases are achieved by optimizing the leasing situation and investing in the building itself.
MANAGE TO CORE & VALUE ADD STRATEGIES

Value Add Commercial Real Estate Investments by definition have the potential to increase in value. They typically have an existing cash flow from rental income, which is, however, significantly optimized during the management phase on both the revenue and the cost side. Value potential is realized through intensive hands-on asset management. This typically includes stabilizing the rental situation, upgrading the property through structural changes and the development and implementation of reuse and repositioning concepts. In order to optimally monetize the increase in value, we pursue the goal of returning the properties to the market once they have stabilized.
OPPORTUNISTIC STRATEGIES

Opportunistic properties are properties with a high potential for appreciation. They are mostly to be found in peripheral B or even C locations, whose market cycles can move to their lowest point, and are therefore characterized by highly speculative traits. The buildings’ conditions usually require extensive renovation measures. The rental situation of such a property is substantially below the market level. The properties are often characterized by significant vacancies, existing tenants have a comparatively low credit rating or the tenant mix is not very attractive. Among other things, economic emergencies or market inefficiencies are used to acquire real estate at particularly favorable conditions. In summary, opportunistic properties are undervalued properties in need of renovation in very difficult markets. These properties are the most risky, but with the highest potential for appreciation.

With a generally very short, strategic holding period of 1-4 years, the investment is geared towards high upside potential that can be achieved by upgrading and increasing the occupancy rate. With a debt ratio of more than 75%, investments in opportunistic properties should achieve a very high return of more than 10% - precisely because the risk for the investor is comparatively high. The primary goal of the Opportunistic Strategy is to generate profit from the resale of the properties. In order to achieve these profits, however, extensive renovation work is required before the property can be repositioned on the market.
DISTRESSED DEBT & NON PERFORMING LOAN STRATEGIES

A Non-performing Loan (NPL) Strategy involves investments in non-performing loan commitments, in our case largely in real estate or ship financing.

In order to reduce credit risks, relieve balance sheets and generate additional liquidity, banks offer non-performing loans on the capital market.

The investor strategies range from short-term solutions such as proportionate repayment of the loan (discounted pay-off), refinancing or private sale of the loan collateral to medium-term measures such as maintaining control over the loan collateral by means of power of attorney and settlement of the remaining debt, management of the insolvency process, foreclosure or resolution of tax, financing or legal problems to long-term solutions such as restructuring the loan and holding it to maturity (hold-to-maturity).
MANAGING SEPARATE ACCOUNTS & TRANSFERRED ASSETS

Individual mandates typically begin with a new capital allocation or transfer of an existing real estate portfolio in conjunction with the release of a new investment budget. Our services include the transfer and execution of asset management and the provision of individual client solutions from Core to Value-add Strategies.