Dear investors & friends of RealVantage,

I hope you are well and safe amid these unprecedented times. Many, including myself, are still coming to terms with the impact of the virus on our lives. But whether it is getting the outbreak under control or finding an effective treatment, I am confident that the indomitable human spirit will prove triumphant as it always has.

Given the scale of disruption and extreme yet necessary stimulus measures taken by governments worldwide, the economic impact will certainly be felt for many years to come. Without a doubt, the crisis will have a negative impact on real estate markets and property prices in the near term. However, it is still early days to measure the full effects, thus we hesitate to put forth a definitive view on where real estate markets are headed. At this juncture, we are monitoring the situation very closely and I would like to personally provide an update on our position.

Our Portfolio

We have been actively engaging our development and operating partners and are glad to inform you that our portfolio is relatively sound. It is times like these that put the rigour of our market research, execution capabilities and discipline in project underwriting to the test. Importantly, our financiers who are backing us on these deals are staying the course, reinforcing our selection of assets and projects. Be assured that we are closely monitoring property performances and have stepped up our requirements for updates from our operating partners and when permitted, we will reinstate our site visits.

Investments

We have received many questions from our investors on future investment opportunities. We are approaching new investments with an abundance of caution and are stress testing our assumptions more rigorously.  As always, we will apply the same uncompromising criteria that has guided our investments to date, i.e. the security of cashflow; value in the acquisition price; reasonableness of property rents; the scope to add value and drive returns. As I often say to my team, we would rather not have a deal on our platform than list one that compromises ourselves and our investors.

Looking Ahead

I have always believed in a long-term view when it comes to real estate investing (as opposed to speculating), and this has never been more relevant than it is today. The world will get through this crisis. The economy will recover. And for those investors who keep their eyes on the horizon ahead, there will be tremendous opportunities in this period of market dislocation. My team will continue to look for deals that meet our stringent requirements and offer better pricing than before the market turbulence began—all of which could create outsized return potential. History is clear on this point.

Stay safe and stay strong.


Read about Realvantage’s viewpoints and strategies on the impact of the COVID-19 Virus on real estate.

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