Paladin Realty generally follows an opportunistic approach in selecting the appropriate product mix and geographic diversification for each investment fund. Weightings will vary from fund to fund, depending upon market conditions and other factors, however the overriding objectives are to achieve attractive risk-adjusted returns through highly-diversified portfolios.
Since 1998, the firm has committed capital to seven countries in the region across a range of product types, including for-sale residential, apartments, student housing, office, industrial, lodging and land developments. The firm is currently focused primarily on:
Paladin Realty is a “control” investor employing a hybrid allocator/operator approach. The firm’s investments are typically structured through programmatic joint ventures with seasoned local operating partners, most of which pursue multiple projects within a focused business plan over the span of five to six years. The firm has an established network of local operating partners in the region, having done business with dozens of companies over the past two decades. In select instances, Paladin Realty manages direct investments without a local operating partner, utilizing the deep real estate development and operating experience of the local staff in its three regional offices.
Lastly, a key component of Paladin Realty’s strategy has been to capitalize its investments with relatively low levels of debt. Peak levels of debt financing for individual residential projects typically total 30-40% of projected total cost and result in fund level debt averaging 10-20% of projected total cost at any point in time. Commercial investments are often made on an all-equity basis, although moderate leverage may be obtained in some markets.