BTB internal growth strategy focuses on increasing rental income through actively managing the tenant mix of each property, leasing vacant space and maintaining good relations with tenants. Many assets currently targeted for acquisition are owned and managed by smaller, local operators that are not typically core real estate investors or operators. Management’s extensive experience capitalizes on upside potential in individual properties. While the acquisition strategy of BTB focuses on acquiring properties with top-tier tenants with long-term leases, BTB accesses the leasing community and retains appropriate brokers to replace and upgrade tenants. BTB has implemented and actively manage an on-going capital improvement program to ensure that the quality of the portfolio meets the standards of equivalent properties and allows the properties to retain structural and aesthetic integrity for its intended useful life.
BTB’s external growth strategy is focused on acquisitions. The REIT actively seeks accretive acquisitions in both primary and secondary markets that present opportunities for favorable returns. BTB has initially focused on acquiring income-producing office, industrial and retail properties in geographic markets east of Ottawa, Ontario with the objective of expanding west in Canada and thereby creating and enhancing a geographically diversified portfolio. BTB believes that current market conditions are providing buyers of real estate the opportunity to benefit from attractive yields on an leveraged basis, and the availability of both short and long-term financing at favorable interest rates.
Throughout the acquisition process, BTB identifies potential property acquisitions using investment criteria that focus primarily on return on equity, security of cash flow, and the potential for capital appreciation. Additionally, BTB considers the potential to increase value by more efficient management of the assets being acquired, maximizing productivity gains, and accessing capital for expansion and development of those assets, which access might not otherwise be available to competitors and other property owners.
BTB has implemented an investment strategy to allow it to pursue the acquisition of commercial properties, from several sources, including: