Valstra Capital Inc. has traditionally invested in real estate to provide investors with a steady predicable cash flow and appreciation. Target assets have included both residential and commercial properties with asset management being undertake internally. This has been a winning formula for us and we continue to look for assets that meet our investment criteria.
Unlocking value in today’s macro environment is proving increasingly difficult. Quantitative easing has seen an abundance of capital chasing a limited supply of quality assets resulting in lofty valuations, compressed yields and increased risk. To mitigate current economic challenges Valstra Capital Inc. has modified its real estate investment criteria and is currently only looking at short term holding periods of properties with easily accessible value. These may be distressed properties, properties in soft markets or properties requiring refurbishment.