EQUITY CAPITAL – CORPORATE / PLATFORM INFUSION
(Listed & Privates)
Client: A NYSE-listed C-Corp. (REOC – real estate operating company) focused in metropolitan New York real estate investments.
Challenge: This relatively smaller Company utilized private market joint venture partners for incremental portfolio growth. Being partly subject to public pricing variation, the Client's external capital options were partly dependent on share price movement and pricing relative to intrinsic value (NAV). The management team also saw an opportunity to exploit a contrarian owner/investor bias focused on metro-NYC opportunities.
Opportunity: To leverage the knowledge-base of the senior management team (which carries 30+ years of experience at prior private and public companies in metro-NYC). The Client's unique corporate structure posed initial complexity but, ultimately, served as a differentiator to exploit for various stakeholders – current and prospective. The actions of PalladianRC, supported by the Client’s unique platform, offer growth potential over the coming 3-5-year period.
Solution / Execution: PalladianRC researched the company – including its assets and competitive position (SWOT) – and completed a comparative analysis against listed and private peers. Concurrently, PalladianRC assessed and researched 20+ direct institutional client relationships and several of its listed REIT portfolio management relationships to triangulate pockets of (out of favor) opportunity for metro-NYC. PalladianRC arranged, negotiated, and executed on a platform/corporate investment, expanding its equity capitalization by ~40%, validating its stance in the institutional marketplace, and increasing its purchasing power substantially at a time when asset pricing has become more favorable.
[PalladianRC has maintained a relationship with this Company’s executive team for 22 years; PalladianRC principals are also investors with/alongside this Company]