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Core Investment

English translation: lower risk investments

08:27 May 3, 2005
English language (monolingual) [PRO]
Bus/Financial - Real Estate
English term or phrase: Core Investment
Client Real Estate Investment Strategies:

1. Core Investments
Prime location, 100% leased, A+ rated covenant, 15 year plus institutional net lease (typical total return target of 8-12%).

Question: What is the intended meaning of "Core" here?

Thank you!

2. Value Added Investments
Prime/secondary location, opportunity to increase rental income and occupancy through active management (typical total return target of 10-16%).
Waleed Mohamed
United Arab Emirates
Local time: 00:33
Selected answer:lower risk investments
Explanation:
Contrasting the 2 items, in 2 you make more money than in 1 (compare the RORs) so greater risk, greater gains. In 1 you risk less, also earn less.

Core means nucleus, and what they mean is that the core investment will form the central/base of your portfolio, the 'safe' element in your investment portfolio. The other investments will be 'peripheral'

See this PDF:http://www.ipers.org/pdfs/investments/policies/realestate.pd...

INVESTMENT CHARACTERISTICS
Core investments are commercial and residential properties which derive their value
primarily from current income production, and therefore represent lower risk profiles
than Non-Core properties. Core investments are stabilized, substantially leased
properties in the four major property types:
1. Office: Mixed-use, multi-tenant, and single tenant facilities, classified as either
Central Business District (CBD) or suburban.
2. Retail: Regional malls, community and neighborhood shopping centers, specialty
centers, and single tenant stores.
3. Industrial: Bulk distribution, light manufacturing, and research and development
(R&D) facilities.
4. Residential: High rise, mid-rise and garden apartments.
Non-Core investments represent a higher risk profile than Core properties, and consist of
the following types:
1. Properties which are acquired primarily for high appreciation potential, and are
expected to derive their value primarily from appreciation returns.
2. Properties which would be Core except for an identifiable and correctable
deficiency such as the need for lease-up, renovation or conversion of an existing
property, or development adjacent to an existing owned property.
3. Properties outside defined Core property types, such as motels, hotels, timber,
agriculture, and raw land.
4. Public real estate securities.
Selected response from:

Lia Fail (X)
Spain
Local time: 22:33
Grading comment
Thank you Ailish and all!
4 KudoZ points were awarded for this answer



SUMMARY OF ALL EXPLANATIONS PROVIDED
4 +3most important/main investment in the porfolio held by the investment
Deborah do Carmo
4 +2lower risk investments
Lia Fail (X)
4 +1safe, stabilized property investment
Erin McGann
4basic
CMJ_Trans (X)
4main investment
Elevenít (X)


  

Answers


6 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
basic


Explanation:
fundamental - the nitty gritty

CMJ_Trans (X)
Local time: 22:33
Native speaker of: Native in EnglishEnglish
Login to enter a peer comment (or grade)

10 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
core investment
safe, stabilized property investment


Explanation:
Definition:
Properties in which a high percentage of the total return is generated from income as opposed to appreciation.


    Reference: http://66.102.9.104/search?q=cache:eDEsPlKGeC4J:www.revenue....
Erin McGann
Ireland
Local time: 21:33
Native speaker of: English

Peer comments on this answer (and responses from the answerer)
agree  Vicky Papaprodromou
20 mins
Login to enter a peer comment (or grade)

43 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +3
core investment
most important/main investment in the porfolio held by the investment


Explanation:
......

--------------------------------------------------
Note added at 43 mins (2005-05-03 09:11:10 GMT)
--------------------------------------------------

also possible without more context

--------------------------------------------------
Note added at 44 mins (2005-05-03 09:11:23 GMT)
--------------------------------------------------

held by the investor that should read!

Deborah do Carmo
Portugal
Local time: 21:33
Native speaker of: English
PRO pts in category: 4

Peer comments on this answer (and responses from the answerer)
agree  Mehmet Şahin (X)
55 mins
  -> thanks
agree  juvera
2 hrs
  -> thanks
agree  Can Altinbay: This one is the best of the 5 suggestions so far.
6 hrs
  -> thanks Can! - I think Ailish's explanation is correct but this gives the bare meaning at least
neutral  Lia Fail (X): Ta, D...I agree that core has the meaning of 'central' /'main' but there are many glossaries that describe the concept as 'long-term'.
16 hrs
Login to enter a peer comment (or grade)

46 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +2
core investment
lower risk investments


Explanation:
Contrasting the 2 items, in 2 you make more money than in 1 (compare the RORs) so greater risk, greater gains. In 1 you risk less, also earn less.

Core means nucleus, and what they mean is that the core investment will form the central/base of your portfolio, the 'safe' element in your investment portfolio. The other investments will be 'peripheral'

See this PDF:http://www.ipers.org/pdfs/investments/policies/realestate.pd...

INVESTMENT CHARACTERISTICS
Core investments are commercial and residential properties which derive their value
primarily from current income production, and therefore represent lower risk profiles
than Non-Core properties. Core investments are stabilized, substantially leased
properties in the four major property types:
1. Office: Mixed-use, multi-tenant, and single tenant facilities, classified as either
Central Business District (CBD) or suburban.
2. Retail: Regional malls, community and neighborhood shopping centers, specialty
centers, and single tenant stores.
3. Industrial: Bulk distribution, light manufacturing, and research and development
(R&D) facilities.
4. Residential: High rise, mid-rise and garden apartments.
Non-Core investments represent a higher risk profile than Core properties, and consist of
the following types:
1. Properties which are acquired primarily for high appreciation potential, and are
expected to derive their value primarily from appreciation returns.
2. Properties which would be Core except for an identifiable and correctable
deficiency such as the need for lease-up, renovation or conversion of an existing
property, or development adjacent to an existing owned property.
3. Properties outside defined Core property types, such as motels, hotels, timber,
agriculture, and raw land.
4. Public real estate securities.

Lia Fail (X)
Spain
Local time: 22:33
Native speaker of: Native in EnglishEnglish
PRO pts in category: 4
Grading comment
Thank you Ailish and all!

Peer comments on this answer (and responses from the answerer)
agree  Robert Donahue (X)
2 hrs
agree  Alfa Trans (X)
1 day 20 hrs
Login to enter a peer comment (or grade)

1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5
core investment
main investment


Explanation:
The offer is for a property that will be the central most important investment opportunity.

The 'Value Added Investment' will then provide a supplemetary and additional revenue stream.

The word 'core' underlines the fact that this is the best investment opportunity on offer.

Elevenít (X)
Hungary
Local time: 22:33
Works in field
Native speaker of: Native in EnglishEnglish
Login to enter a peer comment (or grade)



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