In late 2010, Capbridge Asset Management was engaged by a leading investment bank to take over the asset management of a Japanese property portfolio (consisting of five apartments and two office buildings) it had financed that had already experienced maturity default.
The team was charged with formulating an asset management strategy for the portfolio with a goal of maximizing value in all properties for an orderly disposition within one year.
Capbridge significantly improved the net revenue base and overall portfolio occupancy from 86% to 91% within six months of commencing the asset management assignment. In addition, the firm renegotiated the annual fixed operating expenses across the entire portfolio, which resulted in a 23.4% reduction. Due primarily to these value enhancements, Capbridge was able to identify multiple buyers and dispose of the portfolio at pricing significantly higher than the baseline release prices.