FS Capital focuses on three primary strategies
1. Direct Real Estate
Core Commercial Real Estate
FS Capital’s investment strategy in core (and core plus) Commercial Real Estate is based on selective acquisitions of quality properties in very liquid locations, thus able to attract and retain credit tenants. FS Capital team’s experience, the deep knowledge of the relevant markets, the capacity to understand levers of potential upside, the market recognition of our strong execution capacity and the access to the all major market stakeholders have been key driving factors for the execution of all core investments with some forms of returns’ enhancements.
Opportunistic Real Estate
FS Capital’s investment strategy in opportunistic direct real estate is predicated on the selective acquisition of value-oriented properties, trapped in complex asset or illiquid credit situations, at steep discounts to fundamental underlying market value and where forcing mechanisms are motivating sellers to exit. We focus mostly on small to medium sized assets of good quality in good locations where the obtainable discount to the underlying values is a function of the level of complexity of the assets’ situation and the merits of improving the condition and marketability of the assets themselves.
2. Non-performing Loans
FS Capital’s investment strategy in non-performing loans is based on the acquisition of either single tickets or portfolios of secured loans backed by real estate collaterals of all types: residential, commercial, industrial and land. These loans are usually acquired from motivated sellers at significant discounts to both the outstanding balance of the debt and the value of the underlying collateral, hence providing a strong downside protection. Once acquired, we generate value by working with third party servicers with strong loan management platforms, including all relevant strategic decisions for optimal credit recovery, borrower negotiation strategies, settlements and agreements, credit restructuring, oversight and management of judicial processes.
3. Hard Money & Bridge Financing
FS Capital’s investment strategy in hard money & bridge financing is predicated on providing short-term loans in situations where traditional sources of debt capital have tightened and therefore have a funding gap. All loans are originated with a first lien guarantee over Iberian real estate, including residential, commercial, industrial and land assets.
We can assist our clients on achieving premium pricing (interest rates and arrangement fees) due to our speed and certainty of execution. We can also assist our clients in the underwriting of each loan individually based on each borrower’s and collateral’s own merits and protect the investment by providing a maximum loan to value of 70%. In addition, we use specialized third party servicers for any enforcement actions required.