09 Mar 2017

Value-Add Capabilities

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Principal Real Estate Investors has significant experience helping institutional investors with the performance of their real estate programs through the implementation of value-add strategies. Since 2001, we have executed 289 value-add investments (lease-to-core and build-to-core) valued at over $12.1 billion on behalf of institutional clients.

  • Value-Add: purchase of poorly leased properties or those with substantial near-term lease rollover, typically at prices below reproduction costs, then renovating or repositioning them to a stabilized, core status
  • Development: ground-up development of new properties, ranging from strong pre-leasing to speculative development
  • Strong preference for “green” properties that have or can achieve LEED® or ENERGY STAR® certification, which can help increase leasing velocity, tenant retention, net operating income, and the pool of potential buyers

Value-Add Strategies

We employ the following strategies to help add value to our clients’ investments:

 

Disclosure

* Not all investment professionals are involved with Value-Add strategies offered by Principal Real Estate Investors

Unless otherwise noted, the information in this document has been derived from sources believed to be accurate as of December 2016. 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. Assets under management may include model-only assets managed by the firm, where the firm has no control as to whether investment recommendations are accepted or the firm does not have trading authority over the assets.

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.