Leapfrog Realty Partners' investments will be made in a variety of sectors, geographic locations and business climates. This broad investment mandate allows the firm to source and execute unique and complex transactions including direct equity investments in real property, debt investments secured by real estate, privately placed real estate securities, and joint ventures with, or outright acquisitions of, real-estate operating companies.
Leapfrog Realty Partners is constantly monitoring real estate markets to identify and develop the most promising investment themes based on asset class, geography or targeted groups of sellers. This allows the firm to develop expertise rapidly within special areas, to react quickly to potential opportunities, and to develop strong relationships with key partners in that area.
Leapfrog Realty Partners currently has a specialized interest in owing and managing technology-related properties including Internet gateways, data centers, technology manufacturing properties, and regional or national headquarters of technology companies. The emphasise is on properties that provide the infrastructure for sectors such as disaster recovery and business continuity, electronic commerce and the security of stored or transmitted electronic data.
Anticipation of Trends
Leapfrog Realty Partners' focuses on anticipating promising new investment themes before they become generally appreciated.
Conservative Approach to Investing
Leapfrog Realty Partners' philosophy is generally guided by the fundamental premise that future cash flow, not "trophy status", ultimately determines the value of an asset. Leapfrog Realty Partners believes that rigorous due diligence, the use of conservative assumptions in projecting cash flows, and careful assessment of possible downside scenarios are the best methods for consistently achieving its objectives.
Prudent Use of Leverage
Leapfrog Realty Partners aggressively manages the capital structure of its investments and adheres to a policy of prudent leverage. By virtue of its close relationship with financial institutions, Leapfrog Realty Partners is able to obtain financing arrangements on favorable terms available in order to provide each transaction with greater protection in a downside scenario.
Focus on Exit Strategies
In evaluating any investment opportunity, one of Leapfrog Realty Partners' primary considerations is the potential exit strategy. To that end, the firm focuses on making investments in high quality, well-located assets that should appeal to a wide group of subsequent buyers. In addition, factors that reduce the value of an asset (such as ground leases, preemptive rights, long-term management contracts or other restrictions on the owner's control) are closely scrutinized during due diligence to determine the effects on value. Finally, Leapfrog Realty Partners strives to seek investments with multiple exit strategies including private one- off sales, portfolio sales within common asset classes, mergers with existing public entities, or initial public offerings of stand-alone operating companies.
Complex Situations Requiring Creative Solutions
Leapfrog Realty Partners' ability and willingness to source, evaluate and execute complex transactions within a short time frame is one of its key competitive advantages. Leapfrog Realty Partners focuses on finding creative solutions to complex situations involving under-performing and/or improperly capitalized assets or companies, which allows it to make investments at attractive valuations and to create incremental value in the investment.