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IDM - International Development Management

Overview

Overview

IDM is dedicated to producing the highest yields for its clients on their investments in real property assets. The firm originates and manages investments in both direct equity and debt, as well as securitized, syndicated and other derivative instruments. IDM is an active manager of its assets, from acquisition to disposition. The firm has significant worldwide experience in privately sponsored, large-scale projects of all types, as well as in government sponsored public-private partnerships. In addition to maximizing financial returns on its investments, IDM seeks assets which enhance the living and working lives of people, are additive to their communities, and are sensitive to the natural environment.
IDM has a global history and depth of experience which gives the firm the ability to manage investments from inception to completion. The firm’s principals have expertise in a wide range of asset types. Services provided include financial underwriting, development oversight, design supervision, project and construction management, industrial labor management, marketing, sales, leasing, operations, asset and property management. The reach and effectiveness of IDM is further extended through long-established relationships with institutional investors, commercial lenders, investment banks, advisors, design professionals, specialty consultants and contractors.
A sample of institutions with which IDM affiliates have originated, ventured and/or financed real property related investments include the World Bank’s International Finance Corporation (IFC), the European Bank for Reconstruction & Development (EBRD), the US Overseas Private Investment Corporation (OPIC), Northwestern Mutual Life, the ATT Master Pension Trust, AEW Capital Management, York Capital Management, Starwood Capital, Credit Suisse, Raiffeisen Bank, Creditanstalt Bank and Bank of America, to name only a few. Recent transaction advisors and placement agents have included Goldman Sachs & Co., Morgan Stanley, Eastdil Secured and Jefferies.

 

Development Services

Development Management

Development and Financial Management are disciplines concerned with the comprehensive organization and advancement of a project over a specific period of time, pursuant to a defined budget. The scope of work is broad and requires the application of executive expertise related to many different fields of knowledge, including implementing the business plan for the asset, organizing equity, debt and various levels of mezzanine financing, legal structuring, accounting, auditing, compliance, reporting and administration, design, specialty-consultants and job-site supervision, leasing, sales, and operations.

Leasing and Sales

Leasing and Sales Management are disciplines concerned with the monetization of physical space in the form of either on-going cash flow (leasing) or proceeds from disposition (sales). These disciplines require establishing marketing, advertising, public relations, and media buying, along with all related design, photography, artwork, graphics, digital media and production services. Also required are the establishment of asset-specific, in-house brokerage and related contract administration services. These services include coordinating and motivating the outside brokerage community to ensure proper delivery of the asset to the broadest possible market of appropriate, potential tenants and purchasers. This coordination must be achieved before, during and after the launch event. The formulation of sophisticated pricing matrices and the proper execution of pre-launch stages is essential to the success of any program, as is following through with proper legal contracts, related documentation, closing and administration services.

Construction Management

Construction Management is the discipline concerned with the organization and oversight of the physical construction process, and has both executive and job-site aspects. The scope encompasses technical supervision of the designers and the general contractor (including sub-consultants and sub-contractors) along with oversight of specialty design and construction firms. Also involved are budgeting, scheduling, procurement, and the mobilization and management of human and physical resources over the period of design, pre-construction, construction, completion and delivery.

Asset and Property Management

Asset and Property Management are disciplines concerned with the operation of completed real property assets. Asset Management is an executive function that encompasses property and/or portfolio-wide oversight, accounting, reporting, tracking lease and sale contracts, the collection of rent and sale proceeds, payment of high-level expenses such as mortgages and taxes, and the distribution of earnings to ownership. Property Management is an on-site function that encompasses oversight of daily operations, including collecting rents, paying building-level operating expenses (such as utilities), managing tenant relationships, property-level accounting, and maintenance. Asset and Property Management are provided together with integrated computerized systems and have the objective of maximizing revenues and tenant satisfaction, while at the same time minimizing ongoing operational costs commensurate with appropriate care, maintenance, and regulatory compliance.

Investment Services

Equity Investments

IDM sources, underwrites, acquires, repositions and disposes of real property equity assets on behalf of its funds, institutions, qualified individuals and principals. These assets may take the form of direct purchases of individual properties, entire property portfolios, and privately-held and/or publicly-traded equity securities which represent an ownership interest in real property assets. The firm seeks to maximize the value of the assets over time, and dispose of them with the objective of generating the highest risk-adjusted financial return. The assets, whether held directly or indirectly, in whole or in part, can represent real property at any stage in design, development, construction, monetization or operation. Decision-making and timing for both acquisition and disposition of equity investments is highly structured and predicated on the nature of the asset, the evolving trends in the asset’s specific market, and prevailing conditions in the global economic environment.

Debt Investments

IDM sources, underwrites, acquires, restructures and disposes of privately-held and/or publicly-traded debt securities which are, directly or indirectly, collateralized by real property, on behalf of its funds, institutions, qualified individuals and principals. Investments may be made directly, or through licensed affiliates where appropriate, either independently or in partnership with other private capital and/or government agencies. These assets may take the form of whole loans, loan portfolios or asset backed securities. Debt assets may be purchased for resale in the secondary market or held to maturity. The firm seeks to maximize the value of the assets over time, and dispose of them with the objective of generating the highest financial return. Decision making and timing for both acquisition and disposition of debt investments is highly structured and predicated on the nature of the debt, the evolving prospects and credit quality of the borrower, trends in the secondary market, changes in regulatory and accounting rules, and prevailing conditions in the global economic environment, all of which may affect spreads, implied yields and valuation. IDM’s funds are not lenders or primary issuers of debt. The firm seeks to take advantage of original issuer mispricing of risk by acquiring paper in the secondary markets on a highly opportunistic basis.

Underwriting and Analysis

IDM utilizes a quantitative approach to investing. The firm is focused on traditional forms of real property analytical due diligence, and in the case of debt purchases, credit-issuer underwriting. Prior to recommending any investment, the firm analyses macro-economic trends to understand how the target asset may be affected by global and industry-wide economic cycles and events. Then market and/or issuer-specific research is undertaken to assess localized trends in the short-to-medium term. Once the level of overall and localized risk is understood, individual asset risk is assessed through property-specific underwriting. Experience and judgment is then applied to the factual data resulting in a recommendation with respect to acquisition, repositioning, restructuring or disposition.

Risk Mitigation

The modern financial environment is complex and highly integrated, which provides both opportunities and risks. The flow of information is nearly instantaneous on a worldwide basis. Markets react quickly to new data, which affects asset valuations and liquidity. Investments in institutional quality real property equity and debt are subject to these global cycles and events, in addition to being impacted by the local economies. Challenges in global markets may affect the quality and capacity of tenants and consequently the stability of property cash flow, the viability of lenders and consequently the availability and pricing of debt, and the demand for and valuation of property assets at sale, to name only a few.

Issues of risk present themselves in complex capital structures which must be designed and negotiated to provide optimal risk-adjusted returns. We have the expertise to access and parse the data at multiple levels, analyze the information flows, and build in protections for our assets. These may range from basic conservative valuations at acquisition to hedging in the securities markets.

We believe that not losing money is as important to success as making profitable investments. The key to an effective investment strategy is minimizing the impact of risk on a portfolio of assets. Therefore, we view risk management and mitigation as one of our most important jobs. We are very focused on the downward loss potential in everything we do, examining the risk in individual assets, asset types, markets and our overall exposure. We are disciplined, we pay careful attention to prudent diversification, and we use only modest leverage on all investments. Taken together, these risk strategies have allowed the firm to preserve capital, as well as make profits, in its investment programs.

Projects

The Backyard

A creative campus like no other.

Hard Rock Residencies

Adjacent to the Hard Rock Hotel in Las Vegas, it was the single largest condominium launch in the US history.

Charles Square Center

A 400,000 square foot office and retail project in Prague, Czech Republic

Hill Country Galleria

A 2,250,000 square foot mixed-use development in Austin, Texas.

Scottsdale Waterfront

A 1,000,000 square foot high-end residential condominium, office and retail project in Scottsdale, Arizona.

680 Lakeshore Drive

A 2,000,000 square foot mixed-use project in Chicago, Illinois.

Warsaw Corporate Center

A 125,000 square foot office project in Warsaw, Poland.

Warsaw Financial Center

A 750,000 square foot, 40-story office tower in Warsaw, Poland.

Nevsky 25

A 350,000 square foot office and retail redevel­opment in St. Petersburg, Russia.