Alternative Investments

‘No better time than now’: how Avenue Living is building on its momentum with strategic US expansion

“And when we look at our opportunity to expand our geographical base, it’s necessary to understand that we need to go where we can achieve profitability, yield, and obviously efficiency. We always ask ourselves how can we provide the best and brightest use of capital? How can we continue to ensure that we provide a good return back to our investor base?”

The answer, Giuffre says, does not lie in coastal metropolitan hotbeds like New York or Los Angeles, but in the large expanse of continental North America many refer to as the ‘American Heartland.’

“We want to take our very unique value proposition,” he says, “and find the kinds of customers that we know well in other geographies. We’re not doing anything different. We’re doing more of the same but with an expanded geography.”

“To further generate efficiencies,” Jogia adds, “our Core Trust is acquiring 100% ownership interest in our Avenue Living U.S. Real Estate Trust and its U.S. real estate assets, establishing one North American workforce housing investment vehicle. By the end of December, we will have 10% of our assets under management in the US, and 90% in Canada. This shift will not change the business strategy in any way. It’s the same residents, the same philosophy, the same building types. These are markets that have very similar macroeconomic variables.”

He adds that “the existing quality of management in our newly acquired properties isn’t necessarily akin to what workforce housing residents could be having – so there’s a lot of opportunity for us to provide an improved resident experience. And this is where the magic happens.”

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