Build Real Estate & Property Awards

Build Real Estate & Property Awards 2015 30 VO Real Estate primarily targets middle market assets where maximum value can be created through renovation, repositioning and recapitalisation strategies. Our main investment approach is called gap equity, which involves investing around 80% of the equity requirement for the capitalisation of a multi-family property. The remaining 20% is made up by a local partner or sponsor. The investment opportunities we undertake are usu- ally in areas where there has been an improvement in situation, which we are able to recognise through the regeneration of local retailers, as well as the im- provement of infrastructure and services within the wider community. We seek to capitalise on this by improving the amenities and the units themselves within multi-family apartment complexes within these areas, with a view to raising rents in the future and creating strong returns on our investment. The reason this approach is called ‘gap equity’ is because, unlike a more standard joint venture equity investment, our local partners invest more than the standard 5% - 10%. They also subordi- nate their equity, both in terms of cash flow and return of, and on equity. After we have received a certain return, we then provide our local partner with a greater participation in the upside of the deal, ensuring that they are fully compensated for the additional risk they have to undertake. This supportive principal is also ingrained in our investment philosophy, which revolves around providing our investors with downside protection and upside participation. We achieve the protection through our local partners subordinating their investment across two fronts, and the participation because we still hold consid- erable residual equity. Overall our expertise and unique process enables us to evaluate, diligence and close transactions on an institutional level with the efficiency required for smaller trans- actions. We are able to executive quickly and reliably in order to take advantage of market opportunities and provide further benefit to our investors. This risk averse ‘gap equity’ approach is just one of the three principal ways that DVO uses to differentiate itself from its competitors in the Real Estate Investment sector. The second is our focus on invest- ment opportunities where we can deploy between $2mn and $15mn of equity, meaning we do not compete with many of the larger investment funds in the market. Finally the third pillar of our unique investment offering is that we have unique access to many investment opportunities ahead of our competitors because of our network of property owners, debt origina- tors and intermediaries. Therefore we are able to access many properties before they are widely available to other investment firms, ensuring we always get the pick of the best opportunities. Working collaboratively is at the heart of our business and is a key part of our culture as a company. Staff are all focused on working as a team, and we like our partners and investors to view us as one. This unified approach means that staff are always able to voice their opinions, which makes DVO a supportive and enjoyable environment to work in. However each member of the team is also highly trusted, as everyone has their own individual responsibilities which are important to the success of the firm. Looking to the future we are keen to grow organically as a company and are constantly seeking new investment opportunities. We are working with our investors to expand our market reach and increase our investor pool in order to achieve this. Whilst we do not believe in pressuring ourselves to deploy capital on projects we are not completely comfortable with, once we see a potential opportunity we pursue it vigorously. Currently there are a lot of exciting new opportunities in our market and we are looking forward to seizing these as we move into the New Year. Best for Multi-Family Real Estate Investment- USA & Recognised Leader in Structured Equity Solutions USA DVO Real Estate DVO Real Estate is a New York based Real Estate Investment Company that in- vests gap equity in multi-family properties located in top-tier growth markets in the USA. We invited David Valger to provide us with an overview of the firm and their unique approach to real estate investment. D