13 Sep 2017

Transaction Capabilities

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Comprehensive transaction expertise

Principal Real Estate Investors offers investors holistic transaction expertise, with capabilities in asset management, acquisitions, dispositions, and property development.

Asset Management

Our asset management team, comprised of 53 investment professionals with an average of 18 years of industry experience, is responsible for the day-to-day execution of our clients’ goals and objectives. Our team is actively involved throughout the investment cycle and uses its relationships with local brokers, property managers, partners, owners, and peers to tactically execute a property’s business plan, with the focused objective of creating and realizing value for our clients.

Some key numbers relating to our asset management capabilities are summarized in the table below.

Our asset managers operate in more than 50 markets, covering the full real estate spectrum of core, value-added, and opportunistic, as well as a broad range of property types, including:

Acquisitions & Dispositions

Our dedicated 15-person acquisition/disposition team is organized by geographic region, with a managing director leading each region. This regional geographic focus allows our acquisition/disposition managers to develop a better understanding of key players in their particular market, as well as the pros and cons of property locations. It also allows us to cover a wide range of markets, giving us in-depth knowledge of over 50 markets nationwide.

Each acquisition/disposition manager evaluates transactions for all four property types: retail, industrial, office, and multi-family. They are client-neutral, with responsibility for all property sales in their region. We believe this allows our investment professionals to be more attuned to their respective market from a buyer’s and a seller’s perspective.

Acquisitions

Our acquisitions services include transaction sourcing, underwriting, due diligence, contract negotiations, and closing. Our acquisition process is highly standardized and is primarily responsible for the origination, negotiation, structuring, and closing of acquisitions. Our standardized process allows smooth and efficient execution to create a high volume of quality investments for our clients. As a result, since 2003, our private equity investment production (acquisitions, dispositions, and development) has totaled approximately $50.7 billion.

Dispositions

We bring a dedicated focus to the disposition needs of our clients. Acting on the hold/sell analysis developed in the annual business plan process, our disposition managers oversee every aspect of the disposition process, including:

  • Developing a marketing strategy to optimize our client’s return on the sale
  • Leveraging our deep network to select the group or individual best qualified to execute the strategy
  • Managing the due diligence process in our client’s best interest
  • Overseeing the closing of the transaction.

Acquisitions sourcing: key channels

Since 2001, the majority of acquisitions we’ve made for clients have been sourced and procured through three main channels:

  • Direct from the seller or in limited competition and not fully bid in the larger market
  • Multiple transactions with the same seller
  • Existing lending relationship with the seller

In many cases, these channels have allowed us to procure an acquisition even if we have not submitted the highest bid.

Property development

We have been actively involved in the development of more than $11.1 billion in commercial real estate projects since 2003. Investments in land throughout the major metropolitan markets in the United States are developed into suburban office, flex, service center, multi-family, and industrial buildings.

Our primary mandate is to meet the investment objectives of our clients. We focus on markets with favorable supply and demand characteristics, and will invest only when the projected returns compensate our clients for the development risk. In making all of our investment decisions, we apply a relative value framework with the goal of delivering long-term performance for our clients.

Property development parameters

Disciplined investment process

 

Disclosure

Unless otherwise noted, the information in this document has been derived from sources believed to be accurate as of August 2017. Information derived from sources other than Principal Global Investors or its affiliates is believed to be reliable; however, we do not independently verify or guarantee its accuracy or validity. Past performance is not necessarily indicative or a guarantee of future performance and should not be relied upon to make an investment decision.

The information in this document contains general information only on investment matters. It does not take account of any investor’s investment objectives, particular needs or financial situation and should not be construed as specific investment advice, an opinion or recommendation or be relied on in any way as a guarantee, promise, forecast or prediction of future events regarding a particular investment or the markets in general. All expressions of opinion and predictions in this document are subject to change without notice. Any reference to a specific investment or security does not constitute a recommendation to buy, sell, or hold such investment or security, nor an indication that Principal Global Investors or its affiliates has recommended a specific security for any client account.

Principal Financial Group, Inc., Its affiliates, and its officers, directors, employees, agents, disclaim any express or implied warranty of reliability or accuracy (including by reason of negligence) arising out of any for error or omission in this document or in the information or data provided in this document.

Any projections or other estimates in this document are based upon certain assumptions that may change. As a general matter, the strategy entails a high degree of risk and is suitable only for sophisticated investors for whom such an investment is not a complete investment program and who fully understand and is capable of bearing the risks associated with such strategy. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated above. Moreover, actual events are difficult to project and often depend upon factors that are beyond the control of Principal Global Investors and its affiliates. There can be no assurance that the strategy’s objectives will be achieved, and investors must be prepared to bear capital losses, including a loss of capital invested.

All figures shown in this document are in U.S. dollars unless otherwise noted. All assets under management figures shown in this document are gross figures, before fees, transaction costs and other expenses and may include leverage, unless otherwise noted.

This document is issued in:

  • The United States by Principal Real Estate Investors, LLC, which is regulated by the U.S. Securities and Exchange Commission.
  • Europe by Principal Global Investors (Europe) Limited, Level 1, 1 Wood Street, London, EC2V 7JB, registered in England, No. 03819986, which has approved its contents and which is authorised and regulated by the Financial Conduct Authority.
  • Singapore by Principal Global Investors (Singapore) Limited (ACRA Reg. No. 199603735H), which is regulated by the Monetary Authority of Singapore and is directed exclusively at institutional investors as defined by the Securities and Futures Act (Chapter 289).
  • Australia by Principal Global Investors (Australia) Limited (ABN 45 102 488 068, AFS License No. 225385), which is regulated by the Australian Securities and Investments Commission and is only directed at wholesale investors (as defined in sections 761G and 761GA of the Corporations Act).
  • This document is issued by Principal Global Investors LLC, a branch registered in the Dubai International Financial Centre and authorized by the Dubai Financial Services Authority as a representative office and is delivered on an individual basis to the recipient and should not be passed on or otherwise distributed by the recipient to any other person or organization. This document is intended for sophisticated institutional and professional investors only.

In Europe, this document is directly exclusively at Professional Clients and Eligible Counterparties and should not be relied upon by Retail Clients (all as defined by MiFID). In connection with its management of client portfolios, Principal Global Investors (Europe) Limited may delegate management authority to affiliates that are not authorised and regulated within Europe. In any such case, the client may not benefit from all protections offered by rules and regulations enacted under MiFID.

This document is not intended for, distributed to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.

This document is intended for sophisticated institutional investors only and is delivered on an individual basis to the recipient and should not be passed on or otherwise distributed by the recipient to any other person or organization.