1. GROW WITH GLOBAL DOLLARS: By partnering with an international capital source, a U.S.-based owner can efficiently monetize a portion of their real estate holdings without undertaking a sale. Raising cash to fund acquisitions or exchanging a position in a new partner’s holdings are two great ways to grow the portfolio, leverage an existing operating platform, access new markets and diversify risk.
2. DEEP POCKETS: International capital is actively seeking the stability, transparency and depth of the largest retail real estate market in the world. At the same time, U.S.-based owners with ready access to capital are empowered with the ultimate in execution flexibility and the freedom to strategically focus on business, rather than just “paying the bills. Merge the two and you’ve found the sweet spot. Owners need capital to execute their visions and international firms have the deep pockets to fund them.
3. LEVERAGE YOUR WHOLE PLATFORM: Generally, international investors shy away from property management and leasing in the U.S. They seek strategic alliances that allow them to leverage the local and regional expertise and relationships of best-in-class operators. An owner with an existing operating platform can drive fee income, spread costs across a larger portfolio, exercise a high degree of operational control and adopt best practices. The partnership’s interests are aligned.
4. GLOBAL TO LOCAL: In addition to cost efficiencies, an expanded footprint provides local market intelligence, access and expertise that is crucial for securing new opportunities and maximizing asset value. The flow of capital across borders doesn’t change the fact that, at its heart, real estate is a local business and boots on the ground matter.
5. PARTNERS FOR LIFE: Forging a successful marriage of operating and equity partner is complex and time consuming, especially when factoring in cross -border considerations. When a global joint venture is formed, it tends to be large in scale and long term in duration. Due to the up-front investment of time, these investors are relationship-oriented rather than deal-oriented and strive to partner with groups where interests are closely aligned and future opportunities for investment are likely to continue.