Property Investment Process. A step-by-step outline of investment procedures

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1 A step-by-step outline of investment procedures

2 Every investment requires high-level strategic asset management from beginning to end. At Riverside Capital, we employ a comprehensive, tried and tested investment process and have a proven track record in delivering attractive returns over the short, medium and long term. Combining global perspectives with on-the-ground property expertise, our disciplined investment process is based upon quality, in-depth research. Detailed assessment of both external factors and internal processes means our experienced team is wellinformed to actively manage risk and take advantage of opportunities to consistently drive the performance of assets and enhance returns. 2

3 1 Investor Requirement At Riverside Capital, we strive to identify our investors exact requirements from their property investments and then meet them. We carefully determine investor wants and needs in line with the following criteria; Deal size Capital/income preference Investment type Sector Investment horizon Target return Debt requirement Tax advice and proposed structure 2 Investment Strategy Once investor requirements have been established, our knowledgeable team advises as to exactly which types of property investments will suit, and devises an investment strategy to enable the investor to achieve their goals. Sector allocation Geographical application Determine risk and return objectives 3 Due Diligence With the strategy set, we identify specific investments to meet investor goals, and begin an initial due diligence process on each target asset to ensure that the investment is 100% suitable. Opportunities are sourced via our extensive network of market contacts, and due diligence performed by our in house team. Portfolio assessment and modelling Deal source via professional network Asset appraisal (financials, cash flow, tenant covenant) Valuation Bank debt, cost, terms Business plan and financing strategy 3

4 4 Deal Execution At this stage we physically assemble the portfolio by transacting on the assets that have stood up to our rigorous investment criteria. Engage solicitors Engage professional teams for surveys and valuation Assemble structure Secure credit approval for debt Investor marketing and equity raise Exchange and completion 5 Proactive Asset Management Subsequent to purchase, we drive performance of the asset via the implementation of the pre agreed business plan. Depending upon the strategy and objectives, this can be over the short, medium, or long term. This is determined by investor preference to either hold long term, or sell on completion of the business plan. Execute asset business plans Meet existing tenants Refurbishment Re-structuring and financing Monitor tenants Manage project teams Letting Lease re-structuring 6 Strategic Exit We recognise the various needs and requirements of investors, and our positioning within the market place enables us to provide consistent advice as to optimum timing for exit, and the likely values that can be achieved. When the time is right, we will oversee the disposal process. Prepare asset for disposal Manage disposal process 4

5 On-going Processes Research Research is the principal tool in our investment decision-making process. We combine macro-economic perspectives with in-house investment research and onthe-ground property market intelligence to formulate clear strategies. Global/macro analysis (economic/political) Capital inflows National and local property market analyses Deal sourcing network Risk Management At Riverside Capital, the interests of our investors are retained throughout the entire life of the investment vehicle or mandate. To ensure maximum security of their investments, risk is assessed on several levels. Portfolio analysis by sector, region and income Maximum lot size for single asset as percentage of portfolio Tenant covenants and concentration exposure Limits on borrowing powers Planning position Individual sector against benchmark Monitoring Integrity of investments is important to us. We regularly report on the status of each venture to allow for full transparency of our investment processes at all times. Constant monitoring also facilitates internal assessment of investment strategies and progress. Regular reporting and performance updates Half-yearly or quarterly NAV Valuations 5