New York Sydney Singapore Hospitality Platforms Real Estate Investment Asset Management & Advisory Services Introduction Q2 2017 New York Sydney Singapore www.apaceurocp.com Strategic Partner smatsgroup since 1995
APAC Euro Capital Partners Group APAC Euro Capital Partners Group ( AECPG ) is a Real Estate Investment, Development and Advisory Services practice ( AEAS ) with its Managing Partners and Directors in New York, Sydney and Singapore. Our two principal areas of focus are: AECPG To create innovative and strategic solutions for our capital partners for investment into a series of real estate funds and direct (SPV) opportunities with a focus on hospitality/short stay accommodation in Asia Pacific and select North American and European CBD s. AEAS Our Advisory Services practice works with best in class sponsorships to understand and develop appropriate capital and execution strategies associated with their global real estate projects. Skill Sets & Capabilities The Managing Partners and Directors of AECPG have been in the Real Estate and Private Equity business for nearly 30 years having held senior management positions in Investment Banking, Real Estate Development, Residential Lending and Hospitality. Their relational capital, investment and development experience is global, having advised in $5b in capital and advisory placement over the last 15 years. Core Execution includes: Development of (mid-tier) Limited Service and Full Service hotels Management of European Hospitality Assets Asset & Portfolio repositioning through M&A execution Real Estate Project Finance Master Planned & Mixed Use Development Portfolio Development by Programmatic Capital Deployment and JV partnerships GP/LP Fund Capital Management Foreign National & RMBS Lending Schemes (AUS/NZ) CMBS Lending Schemes (AUS/NZ) Secured Mortgage Book Build & Management Structures, Taxation & Lending Professional Advisory & Management
North America - New York Our North American office is based in New York City and is the centre of our APAC Euro Advisory Services practice. We use our extensive reach and global capital relationships to execute solutions for the funding needs of our clients in the following areas: Development of mid tier Limited Service hotels Real Estate Project Finance Joint Venture Schemes; Development and Portfolio Acquisition Master Planned & Mixed Use capital advisory Programmatic Capital Deployment GP/LP Fund Capital Australia - Sydney Our main Australian office is based in Sydney, where we focus on investment activities in hospitality/short stay accommodations. The APAC region represents a compelling opportunity for mid-market accommodation growth driven by the rising affluence of middle income consumers supporting demand across the region for both leisure, business travel and education. AECPG has secured proprietary relationships with leading multinational hospitality brands to introduce their new limited and upper tier brands to the Asia Pacific region and select European cities. We structure investment vehicle/s to fund opportunities in Asia and Australasia supported by global capital partners and by creating portfolios of assets through programmatic deployment of capital to develop, reposition and engage in select M&A activities. Through our related entities, we hold appropriate AFSL Licences giving us financial mobility to create structures suitable to the requirement. Our hospitality programs are supported by a complementary focus on short stay accommodation to provide housing to meet the increasing movement of international students and travellers across the APAC region. We also have offices throughout the country in Melbourne, Perth & Brisbane. Asia Pacific- Singapore Our Asia Pacific office is based in Singapore where we focus on investor services and opportunities management. The region has a strong investment appetite for global projects, especially Australia, and an emerging wealth market. Our group has been offering specialised financial services, lending and taxation support for over 20 years and has a well established client pool and strong reputation. There remains many opportunities to both source and place investment capital in the region. We also have offices throughout the region in Hong Kong, Malaysia & China.
Limited Service Hospitality Global Reach Our work in Limited Service Hotels is based across our three geographies, Asia, Australasia and North America where we work with global hospitality groups in introducing hotels in the fastest growing sector of the market. Limited Service Hotels: the future of hospitality The future of hospitality development is found in hotels that offer select services which appeal to all demographics and complemented by the location in which each hotel is located. A smaller footprint and design flexibility allows us to position assets in a variety of locations including mixed use buildings, airports, shopping centres and university precincts. Global Partnerships Our work in this space is underpinned by long standing relationships with global partners. These include: Hard Rock Hotels and Marriott International Development and construction groups that offer end to end solutions Professional consulting teams to support each project REPE firms and investors Specialisms Our work is divided into three distinct areas: Proprietary development for our own account through JV s or a fund structure Establishment and management of fund structures to assist developers and hospitality groups with the roll out of hotel assets Advisory assignments for clients requiring the creation and implementation of capital structures in connection with developments. AECPG Fund Structures AECPG will operate a discretionary & managed capital deployment structure according to LP requirements and mandates. Our core investment focus is on Asia Pacific and select North American mid tier Limited & Full Service hospitality development and asset repositioning. Our objective is to establish initial funds to facilitate our core strategies in hospitality by creating superior partnerships, driving long term asset appreciation and well devised exit strategies.
Non Bank Lending Platform- Australia The current climate offers significant short and long term opportunity in the well proven, regulated and safe Australian property lending market. AECPG offers our clients direct access to this market through multiple channels including: First Mortgage lending in both Residential & Commercial Property. Residential Mortgage Book Build & Management on short or long term basis for return and securitization value. Development Funding in quality projects across Australia as funder or development partner. Strategic Funds Allocation to the property market targeted to a clients specific requirements. Our global spread of offices, specialised skills and strong history in this market allow us to offer performance with protection. Student Accommodations (PBSA) A Nascent Asset Class with Enormous Potential To date there is no major commercial PBSA operators in Western Australia, presenting a remarkable first mover advantage to any group with the proven development and operational expertise. Key drivers supporting the PBSA market include: More Tertiary Education Students Demand for student accommodation is largely driven by international and interstate tertiary students in Australia. The number of tertiary student enrolments has been growing steadily in Australia, with numbers expected to increase further given the weakening Australian dollar, a rising Asian middle class, proximity of Australia to Asia and recent policies by the Australian government that aim to double the number of international students. Supply Gap in the WA PBSA Market Examining the current university supply around WA suggests that supply ranges from 9.2 49.4 students per existing student accommodation bed. In contrast across other Australian universities, supply ratios range from 3.2 16.5 students per bed. According to a JLL report, there are currently only 4,768 PBSA beds in Perth catering to a total enrolment of 98,354, working out to just over 4.8 beds per 100 enrolments. It its estimated that there will be a supply gap of over 3000 beds by 2018. Increased Prevalence of PBSA as an Option Demand for PBSA is anticipated to increase in subsequent years with the emergence of established and experienced operators who understand and are able to cater facilities that students are after. This should enhance the quality and hence marketability and attractiveness of PBSA as an alternative to private rentals or on campus housing.
Our Limited Partners Our limited partners will be drawn from the institutional investment community and share a complementary mindset and vision. Have mandates and are seeking exposure to hospitality and PBSA in single asset exposure. Looking to invest into hospitality and student accommodation schemes. Execute a tightly drawn schedule of programmatic development managed by a well credentialed international support team. Work through a clearly defined strategy of portfolio development and the eventual disposal to identified parties, public & private. Support the core competencies of AECPG throughout its development programs either as an investor into one of our fund structures or directly into individual SPV s/llc s as a co-developer/manager. Looking for large scale deployment of commercial and residential capital into local lending platforms with best in class origination, underwriting and servicing infrastructure (Third Party Advisory- AUS/NZ) Managing Partners & Directors Mr. Kenneth Herzberg: Managing Partner, USA Managing Director Capital Markets and Advisory Services Mr Herzberg has spent 20 years in senior management positions in the Commercial Real Estate and Capital Market advisory business with a focus on global market finance. He has spend the last 4 years working on several proprietary housing finance platforms. He was the founding partner of his own advisory firm representing clients on hospitality and resort projects throughout the U.S, Latin America and the Caribbean. From 2002-2010 he was the Managing Director of Carlton Group s hospitality practice and Capital Markets Director for a real estate development firm in New York City for six years prior. Mr. Neil Jeram: Managing Partner, Australia Managing Director APAC Euro Capital Partners Group Mr. Jeram has spent his career initially in legal practice from 1987 in the UK and since 1994 in real estate private equity spread between the UK and since 2003 in Australia and Asia. Notable transactions include acquisitions and capitalisation of shopping centre and commercial real estate portfolios, development of financing structures for resources and mining houses. Mr. Steve Douglas: Managing Partner, Singapore Managing Director of Australasian Taxation Services and Executive Chairman of SMATS Services Pte Ltd. SMATS was established in Singapore in 1995 and has grown to be the largest provider of taxation and finance services to overseas based Australian property investors. The business has arranged over A$2bn in lending and has a strong professional team deployed globally. Steve began his career with Ernst Young in 1984 and established a private taxation practice in 1988 specialising in small business taxation and management. He is a Chartered Tax Advisor, Fellow of the Taxation Institute of Australia and a Registered Tax Agent and author of the tax planning book The Aussie Expat The Luckiest Person on Earth.
Contacts Kenneth Herzberg, Managing Partner, USA Main: + 1 917 848 7900 Cell: +1 917 282 5605 Email: kherzberg@apaceurocp.com Neil Jeram, Managing Partner, Australia Cell: + 61 433 946 665 Cell: + 61 421 934 312 Email: njeram@apaceurocp.com Steven Douglas, Managing Partner, Singapore Main: + 65 6293 3858 Email: steve@smats.net New York Sydney Singapore www.apaceurocp.com