Morguard’s acquisitions group identifies client investment requirements, sources new investment opportunities, negotiates transactions and completes the due diligence, underwriting and closing of purchases.
For every property we intend to acquire, we create a team of employees with specialized expertise. Each opportunity is thoroughly researched with an in-depth financial analysis, full physical and environmental reviews and a risk analysis carried out during the due diligence and syndication phase. The group oversees the transaction through closing and ensures that Morguard’s operations and asset management groups are involved so the transactions run smoothly.
Morguard’s acquisition process is as follows:
- We first establish clear investment parameters with the client, which are then used to qualify investment opportunities.
- We utilize our in-house research team and extensive employee network across Canada and the United States to maintain a clear understanding of the markets and environments in which we do business.
- We maintain strong relationships with the brokerage community, nationally and regionally, to ensure that we see every available opportunity, often on a preferred basis prior to market offering.
- We aggressively use our network of contacts with tenants, local developers and local communities to seek out opportunities that are not publicly listed.
- To overcome financial constraints, we identify investing partners to allow clients to pursue investment opportunities of interest.
- We leverage our capital market expertise to develop financing solutions to acquire companies or portfolios available for privatization.
- We conduct a rigorous diligence exercise with every investment. Among other things, this exercise involves conducting a comprehensive property inspection and lease/tenant review.
As part of the diligence process prior to the acquisition of an asset, the fund or asset manager works with the acquisition team to develop an investment brochure to be approved by the investment committee or the investor. This brochure contains a 10- to 15-year pro forma model for the acquisition, a rolling three-year strategic budgeting business plan for the asset, and all diligence-related material, such as lease reviews, property inspection reports and environmental assessments.