Barana has experience in and exposure to a broad range of real estate asset classes.
Part of Barana's "value add" strategy extends beyond identifying, negotiating and structuring acquisitions and has involved performing various other functions.
Barana acts as Asset Manager for property syndicates which it has structured. As part of the syndication business, Barana identifies suitable properties for acquisition, negotiates the purchase terms and the financing structure. This also involves identifying the appropriate holding structure for the relevant property.
As part of the process, Barana will group together like minded investors who then, through the relevant ownership structure, become the effective owners of the property. Again, going forward, Barana acts as the Asset Manager for the transaction.
Typically Barana's principal are significant investors in each of its property syndicates.
The syndication business makes available investment opportunities for like minded investors who have been associated with Barana’s principal for a significant period of time and also provides Barana Group with management fee income.
Currently Barana manages a portfolio of property with a value in excess of $450 million. As Asset Manager, Barana acts as the owners representative, organising all key issues concerning the investment, including all major financing and property decisions as well as accounting and financial management functions.
Often it is the case that the property which has been identified ultimately represents a redevelopment opportunity, however in the short to medium term the property can be held as an income producing asset. This allows the necessary 'breathing space' to obtain the necessary approvals and generally prepare all of the steps required as part of the development process.
Other properties held do not represent development opportunities but have been acquired as investments capable of achieving favourable risk adjusted returns.
Barana’s central investment philosophy is to earn favourable risk adjusted returns.
As the real estate market is a market based upon "lumpy" or illiquid assets, often it is the case the pricing imperfections do occur. Barana’s goal is to take advantage of these pricing imperfections.
Barana has a track record in relation to a diverse range of property classes - being commercial, retail, hospital, residential as well as structured property finance. As the cycles in these various property sub-markets tend to follow different patterns, Barana seeks to focus on those sub-markets where the best risk adjusted returns are available at any particular point in time.
Barana does not seek to grow for the sake of growth. There is a disciplined approach to investment and it is only in the event that any individual transaction meets the risk adjusted return investment criteria that it will be considered.