From Mandate to Exit

How an engagement runs and what the investor approves.

One Mandate, Six Stages

Formation

1Mandate

Purpose

Turn the investor’s objectives into a clear mandate.

Output

Investment Mandate

Investor approval
Mandate and decision framework
Formation

2Assess

Purpose

Screen opportunities against the mandate.

Output

Investment Memorandum

Investor approval
Progression to detailed assessment
Execution

3Structure

Purpose

Coordinate structure, financing and tax before commitment.

Output

Structure and Execution Plan

Investor approval
Structure and agreed terms
Execution

4Acquire

Purpose

Complete diligence, financing and documentation to one plan.

Output

Acquisition Decision Pack

Investor approval
Final investment decision before commitment
Ownership

5Own

Purpose

Test the investment case against performance and conditions.

Output

Asset Monitoring, Reporting and Decision Support

Investor approval
Refinancing, material capital expenditure and plan changes
Principal activities
  • MonitorRent, occupancy, lease events, NOI and cash flow against plan
  • EscalateBudget variance, leasing, capital expenditure, financing and emerging risks
  • ReportPerformance, valuation and market changes, with recommendations for investor approval
Ownership

6Exit

Purpose

Weigh refinancing, partial realisation or sale against the mandate.

Output

Exit Recommendation and Execution Plan

Investor approval
Timing, pricing and disposal terms

Five Tests, One Investment Case

Does it meet the investor’s objectives, constraints and ownership requirements?

  • Objectives, hold horizon and reporting requirements
  • Currency, structure and tax constraints

Do demand, liquidity and regulation support the strategy?

  • Occupier demand and competing supply
  • Market depth at this profile
  • Planning, licensing and regulatory direction

Are building, income and capital needs understood and defensible?

  • Building condition, services and compliance
  • Lease structure, covenant and income
  • Capital expenditure during the hold

Is the return acceptable without favourable market movement?

  • Basis against replacement cost and long-run income
  • Exit yield and financing cost sensitivity
  • Return if conditions do not improve

Can the plan be delivered, controlled and realised?

  • Local execution and accountability
  • Decisions reserved to the investor
  • Likely buyer profile at realisation