US Real Estate Debt Strategies – GTIS Partners – 3.11.24

Overview:

Title: US Real Estate Debt Strategies
Date: Monday, March 11, 2024
Time: 2:00 PM Eastern Daylight Time
Duration: 1 hour

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Summary:

Now On Demand

During this webcast we will discuss:

  • GTIS Partners is targeting investor commitments to invest in the origination and acquisition of high-yield senior debt, mezzanine debt and similar structured financings, capitalizing on the favorable market opportunity for real estate credit created by rising interest rates and bank liquidity crunch.

  • Rising interest rates and falling asset values, multiple bank failures and large impairments of traditional lender balance sheets are creating significant pullback in real estate credit availability.

  • Over $2T of commercial debt is coming due in the next three years that will need to be refinanced, with traditional lenders providing significantly lower LTV loans than required to replace the maturing debt, opening a large capital gap.

  • This financing void and high interest rates are creating a scalable opportunity to generate equity-like returns by lending on high quality real estate in good markets at relatively safe position in the capital stack (<75% loan to value).

Speaker:

Peter Ciganik Peter Ciganik Partner, Head of Capital Markets GTIS Partners

Peter Ciganik is a Partner, and Head of Capital Markets at GTIS. In addition, Mr. Ciganik is responsible for GTIS’ macro and investment research, global strategy and new business development and is a member of the General Partner’s U.S. Funds Investment Committees.

Mr. Ciganik’s experience in the real estate industry began in 2002. Prior to joining GTIS in 2007, Mr. Ciganik worked with Morgan Stanley Real Estate Funds (MSREF) in London and with Lehman Brothers Real Estate Partners (LBREP) in New York. In his prior engagements, Mr. Ciganik was responsible for the evaluation, financial modeling and due diligence of equity and mezzanine debt investments, participating in acquisitions of over $800 million of individual and portfolio assets. Before joining LBREP, Mr. Ciganik worked with Lehman’s Corporate Strategy and Acquisitions group, and as a Business Analyst with McKinsey & Co. in Frankfurt and New York.

Mr. Ciganik graduated summa cum laude and Phi Beta Kappa from Harvard College and received an M.B.A. from the Stanford Graduate School of Business.

THIS PRESENTATION IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INTENDED AS INVESTMENT ADVICE. THIS PRESENTATION DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES, WHICH WILL BE MADE ONLY PURSUANT TO DEFINITIVE WRITTEN OFFERING DOCUMENTS. THE PRESENTATION HAS BEEN PREPARED ON A CONFIDENTIAL BASIS. ANY REPRODUCTION OR DISTRIBUTION OF THIS PRESENTATION IN WHOLE OR IN ART, OR THE DISCLOSURE OF ANY OF ITS CONTENTS, WITHOUT THE PRIOR CONSENT OF GTIS PARTNERS (“GTIS”), IS PROHIBITED. A PRIVATE OFFERING OF INTERESTS IN GTIS US REAL ESTATE DEBT STRATEGIES FUND, LP (THE “FUND”) WILL BE MADE ONLY IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS AND PURSUANT TO A CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM (THE “OFFERING MEMORANDUM”) AND THE FUND’S SUBSCRIPTION DOCUMENTS AND PARTNERSHIP AGREEMENT (COLLECTIVELY, WITH THE OFFERING MEMORANDUM, “OFFERING DOCUMENTS”), WHICH WILL BE FURNISHED TO QUALIFIED INVESTORS ON A CONFIDENTIAL BASIS AT THEIR REQUEST FOR THEIR CONSIDERATION IN CONNECTION WITH SUCH OFFERING. THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO, THE OFFERING DOCUMENTS, WHICH WILL CONTAIN ADDITIONAL INFORMATION ABOUT THE INVESTMENT OBJECTIVE, TERMS AND CONDITIONS OF AN INVESTMENT IN THE FUND AND ALSO CONTAINS TAX INFORMATION AND RISK DISCLOSURES THAT ARE IMPORTANT TO ANY INVESTMENT DECISION REGARDING THE FUND.

•THIS PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS THAT ARE NOT HISTORICAL FACTS. THESE FORWARD-LOOKING STATEMENTS INCLUDE STATEMENTS, EXPRESS OR IMPLIED, REGARDING THE CURRENT EXPECTATIONS, ESTIMATES, PROJECTIONS, OPINIONS AND BELIEFS OF GTIS, AS WELL AS THE ASSUMPTIONS ON WHICH THOSE STATEMENTS ARE BASED. WORDS SUCH AS “BELIEVES”, “EXPECTS”, “ENDEAVORS”, “ANTICIPATES”, “INTENDS”, “PLANS”, “ESTIMATES”, “PROJECTS”, “SHOULD” AND “OBJECTIVE” AND VARIATIONS OF SUCH WORDS AND SIMILAR WORDS ALSO IDENTIFY FORWARD-LOOKING STATEMENTS. SUCH STATEMENTS ARE FORWARD-LOOKING IN NATURE AND INVOLVE A NUMBER OF KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS, INCLUDING THOSE DESCRIBED IN THIS PRESENTATION, AND ACCORDINGLY, ACTUAL RESULTS MAY DIFFER MATERIALLY, AND NO ASSURANCE CAN BE GIVEN THAT GTIS WILL EXECUTE SUCH PROJECTED INVESTMENTS OR WILL ACHIEVE THE RETURNS FROM ITS INVESTMENTS THAT IT IS TARGETING.

•GTIS BELIEVES IT IS IMPORTANT TO COMMUNICATE ESTIMATES OF ITS POTENTIAL RETURNS FOR ILLUSTRATION AND DISCUSSION PURPOSES TO EXISTING AND PROSPECTIVE INVESTORS. HOWEVER, BECAUSE THE RESULTS ARE ESTIMATES, ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED. UNLESS OTHERWISE NOTED, THE VALUATIONS OF INVESTMENTS CONTAINED WITHIN THIS PRESENTATION ARE BASED UPON INFORMATION AND DATA AVAILABLE AS OF THE DATE THESE MATERIALS WERE PREPARED. THE ACTUAL REALIZED RETURN ON ALL UNREALIZED INVESTMENTS WILL DEPEND ON VALUATION OF THE INVESTMENT AT THE TIME OF DISPOSITION, ANY RELATED TRANSFER COSTS AND THE MANNER OF SALE. MARKET CONDITIONS MAY LIMIT THE LIQUIDITY OF UNREALIZED INVESTMENTS.

•TARGETS ARE NOT GUARANTEES, FORECASTS OR PREDICTIONS AND THERE CAN BE NO ASSURANCE THAT THESE TARGETS OR GTIS’ EXPECTATIONS REGARDING THESE INVESTMENTS WILL BE MET. TARGET RETURNS (INCLUDING ANY DATA RELATED THERETO) ARE BASED ON GTIS’ ESTIMATES AND ASSUMPTIONS ABOUT CIRCUMSTANCES AND EVENTS THAT HAVE NOT OCCURRED YET AND MAY NEVER OCCUR. ACTUAL EVENTS OR RESULTS MAY DIFFER MATERIALLY, POSITIVELY OR NEGATIVELY, FROM THOSE CONTEMPLATED. IF ANY OF THE ASSUMPTIONS USED TO DERIVE SUCH TARGET RETURNS DO NOT PROVE TO BE ACCURATE, RESULTS MAY VARY SUBSTANTIALLY FROM THE TARGET RETURNS SET FORTH HEREIN.

•PROJECTIONS ARE NOT INDICATIVE OF FUTURE RESULTS AND ARE BASED ON ASSUMPTIONS MADE AT THE TIME THE PROJECTIONS ARE DEVELOPED. THERE CAN BE NO ASSURANCE THAT THE PROJECTED RESULTS WILL BE OBTAINED, AND ACTUAL RESULTS MAY VARY SIGNIFICANTLY FROM THE PROJECTIONS. GENERAL ECONOMIC CONDITIONS AND OTHER FACTORS, WHICH ARE NOT PREDICTABLE, CAN HAVE A MATERIAL ADVERSE IMPACT ON THE RELIABILITY OF SUCH PROJECTION.

•INFORMATION HEREIN HAS BEEN CHARACTERIZED BY GTIS BASED ON INTERNAL RESEARCH AND DATA. ALTHOUGH GTIS BELIEVES SUCH DETERMINATIONS ARE REASONABLE, THEY ARE INHERENTLY SUBJECTIVE IN NATURE. OTHER MARKET PARTICIPANTS MAY MAKE DIFFERENT DETERMINATIONS RELATING TO INDUSTRY CHARACTERIZATIONS BASED ON THE SAME OR UNDERLYING DATA.

•THE TERMS SUCH AS “DEFENSIVE”, “RESILIENT” OR WORDS OF SIMILAR IMPORT DO NOT IMPLY THAT ANY INVESTMENT BY THE FUND WILL BE PRINCIPAL PROTECTED OR THAT AN INVESTMENT IN THE FUND IS OTHERWISE SAFE. INVESTMENT IN THE FUND NECESSARILY INVOLVES RISK INCLUDING A RISK OF LOSS OF THE ENTIRE INVESTMENT.

•THE INVESTMENTS LISTED HEREIN DO NOT REPRESENT ALL THE INVESTMENTS MADE BY GTIS. RATHER SUCH INVESTMENTS WERE SELECTED AS REPRESENTATIVE OF THIS INVESTMENT. IT SHOULD NOT BE ASSUMED THAT INVESTMENTS MADE IN THE FUTURE WILL BE COMPARABLE IN QUALITY OR PERFORMANCE TO THE INVESTMENTS DESCRIBED HEREIN. FOR A LIST OF ALL INVESTMENTS, PLEASE CONTACT GTIS.

•WHILE PRESENTING THE OPPORTUNITY FOR MONETARY GAIN, AN INVESTMENT IN THE “FUND” WILL INVOLVE A HIGH DEGREE OF RISK AND IS SUITABLE ONLY FOR INVESTORS THAT HAVE NO IMMEDIATE NEED FOR LIQUIDITY OF THE AMOUNT INVESTED AND CAN WITHSTAND A LOSS OF THEIR ENTIRE INVESTMENT IN THE FUND. WHEN ANALYZING AN INVESTMENT IN THE FUND, PROSPECTIVE INVESTORS SHOULD CONSIDER, WITHOUT LIMITATION, THE FOLLOWING RISKS, AND SHOULD ALSO CAREFULLY REVIEW THE MORE THOROUGH DISCUSSION OF RISK FACTORS AND POTENTIAL CONFLICTS OF INTEREST CONTAINED WITHIN THE OFFERING DOCUMENTS.

•GTIS CANNOT PROVIDE ANY ASSURANCE THAT IT WILL BE ABLE TO CHOOSE, MAKE AND REALIZE INVESTMENTS IN ANY PARTICULAR ASSET OR PORTFOLIO OF ASSETS. SIMILARLY, THERE CAN BE NO ASSURANCE THAT THE FUND OVERALL WILL BE ABLE TO GENERATE RETURNS FOR ITS INVESTORS OR THAT THE RETURNS WILL BE COMMENSURATE WITH THE RISKS OF INVESTING IN THE TYPES OF ASSETS THE FUND WILL BE TARGETING. THERE CAN BE NO ASSURANCE THAT ANY INVESTOR WILL RECEIVE ANY DISTRIBUTION FROM THE FUND. ACCORDINGLY, AN INVESTMENT IN THE FUND SHOULD ONLY BE CONSIDERED BY PERSONS WHO CAN AFFORD A LOSS OF THEIR ENTIRE INVESTMENT. PROSPECTIVE INVESTORS ARE CAUTIONED THAT PAST PERFORMANCE OF INVESTMENT ENTITIES ASSOCIATED WITH GTIS OR THEIR RESPECTIVE AFFILIATES IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS AND PROVIDES NO ASSURANCE OF FUTURE SUCCESS.