The primary investment objective of Magna Enterprises, LLC is the preservation of capital and the realization of above market risk adjusted returns. Our investment philosophy is to create value in quality properties that will maintain superior residual values over many years. Having created or added value, we then seek to realize the gain on a selective and opportunistic basis through the sale or refinancing of those assets.
A driving investment principle at Magna is to maintain an entrepreneurial mindset and an informal non-corporate structure. This approach has enabled the firm to respond very quickly to transactions and to offer creative customized solutions for acquisitions. Also at the forefront of our day-to-day operations is our commitment to integrity and upholding good business ethics.
We place a premium on protecting and preserving capital and therefore we perform a comprehensive risk-reward analysis on each real estate investment. In order to expose opportunities we continuously research our selected markets, and then carefully analyze an asset’s competitive position within its sub-market. In selecting among investment opportunities, careful assessment must be made of the risk profile of the various alternatives. We formulate a specialized operational plan during the underwriting process for each asset in order to pro-actively address potential challenges and opportunities.
Magna Enterprises, LLC chooses to do much of its asset and property management in-house and pays close attention to the structure and governance of each asset. It is our knowledge of how to operate and manage real estate investments across a diverse range of asset types, which provides the needed insight and experience to create value. During the ownership’s investment period, we seek to add value through asset and financial restructuring, by implementing best in practice property management procedures, and by utilizing its substantial capital markets expertise.
Real estate is a cyclical business with its cycles determined, in large part, by capital flows. A sound investment strategy must recognize the importance of these cycles and requires a commitment to maintain pricing discipline when buying, and a willingness and an ability to move quickly to sell when the value enhancement program has been completed and the Capital Markets are fully valuing asset and market fundamentals.
We believe that leverage should be employed at a level that provides a meaningful enhancement to investment returns, but not be so high that a fundamentally sound asset will be put at risk during periods when leasing markets soften or Capital Markets become constrained. We leverage our assets at a level that reflects the underlying risk to the asset’s cash flow.
We believe that risk is best mitigated by investing in top quality properties that, due to their location, physical quality, amenities and other attributes, will always be preferred business locations. Risks are further mitigated by operating these properties with a focus on responsive and cost-effective service to tenants, so that opportunities to expand and retain tenants, on the most favorable terms, are maximized.
In summary, our mission is to create value through the real estate investment and development process by maximizing returns on a risk adjusted basis.