Strategic Objectives
We assess opportunities against 5 criteria
Growth
The potential for generating future returns through strategic investments in trading and development assets, and operating businesses.
Resilience
The capacity to deal with risk and shocks by implementing risk mitigation and management strategies, such as gearing, debt tenor, insurance, hedging, and exposure management.
Short term profitability
The opportunity to defer investment decisions and reducing costs to maximise short-term earnings, often through investments in over rented assets or assets with short term leases, and exploiting arbitrage opportunities.
Flexibility
The ability to adapt to changing market conditions and opportunities, including maintaining liquidity reserves and flexibility in operating activities.
Predictability
The creation of stable future earnings with limited volatility or growth potential, such as investments in bonds or bond like returns, rent collection, and the tenor of contracted rents or income.
We aim to match the characteristics of each investment opportunity with an investor’s risk appetite, targeted returns and return preferences.
Setting the Business Model
We consider a range of macro and asset specific principles in assessing an investment.
We understand that physical assets have an economic life, and that capital is required to extend an asset’s economic life.
All physical assets eventually depreciate to (or below) land value. There is an optimum investment period for every asset.
Demand, Supply and replacement cost are the key considerations for relative value in each market.
We recognise capital cycles. There is no such thing as “this time it’s different”. Timing in the market is often more important than time in the market for physical assets.
The value of physical assets is usually driven by long term trends such as population growth.
CapitalNet Pty Ltd
The Annex | Level 7, 12 Creek Street, Brisbane QLD 4000
+61 424 802 961
ABN 51 674 087 319
