Acquisitions

Qwoti’s acquisitions function sources, underwrites, structures, and closes asset and portfolio transactions using SPV-level ownership and a debt-first financing approach. The acquisitions team enforces standardized diligence, swift execution, and institutional governance to secure assets that meet target return and risk parameters.

1. Acquire income-generating commercial and residential properties that fit the portfolio allocation and risk-return framework.
2. Maintain disciplined underwriting that supports conservative leverage and DSCR targets.
3. Enable clean SPV-level ownership to provide investors with clear entry and exit mechanics.

• Size & Type
  Typical range
• Geography
  Western Europe
• Financial Metrics
  Target returns
• Risk Profile
  Preference

1. Pipeline & screening: intake via broker networks, institutional sellers, developers, and proprietary data screens.
2. Initial review: rapid financial and legal screening against investment criteria to qualify opportunities for full diligence.
3. Indicative offer: submit term-sheet or indicative bid and, where appropriate, secure exclusivity to proceed.
4. Integrated due diligence: run parallel financial, legal, technical, environmental, tax, and leasing diligence with clear decision gates.
5. Financing execution: lock senior debt term sheets and any mezzanine or equity commitments; arrange bridge financing if required for timing.
6. Approval: present standardized investment memo and sensitivity analyses to investment committee for final sign-off.
7. Closing & SPV transfer: complete documentation, funding, and transfer of ownership into a pre-configured SPV.
8. Post-close 100-day plan: implement leasing, capex, tenant engagement, and performance tracking.

Every acquisition requires a comprehensive investment memo including market analysis, financial model (base, upside, downside), sensitivity and stress tests, legal/tax opinion summaries, technical and environmental reports, financing terms, and a clear exit plan. Approval follows delegated authority limits with higher-value or higher-leverage transactions escalated to the holding board or investor advisory committee.

1. Financial modelling: historical P&L, rent roll, expense verification, pro forma stabilization, and covenant modelling under stress.
2. Legal: title, leases, tenant estoppels, encumbrances, planning permissions, and regulatory constraints.
3. Tax: acquisition taxes, transfer taxes, VAT treatment, and withholding implications across jurisdictions.
4. Technical: building surveys, capex estimates, life-safety systems review, and adaptability for alternative uses.
5. Environmental: Phase I/II surveys, contamination risks, asbestos, and remediation cost estimates.
6. Commercial/leasing: tenant credit checks, lease expiry schedule, break options, and reletting assumptions.

Valuations are triangulated using discounted cash flow (DCF), comparable transactions, and income capitalization approaches with conservative assumptions for rent growth, vacancy, and capex. Qwoti enforces maximum price thresholds tied to target unlevered yields and levered IRR return bands and requires downside sensitivity below covenant triggers.

1. SPV-based acquisition: establish single-asset SPV prior to close to hold the property, debt, and leases.
2. Purchase price mechanics: negotiate escrows, deferred consideration, or earn-outs only when they improve alignment and mitigate risk.
3. Contingencies: include financing and satisfactory diligence conditions with realistic timetables to preserve seller relationships.
4. Tax-efficient structuring: leverage local wrappers and intermediary holdings to optimize transfer tax, VAT, and withholding outcomes.

The acquisitions team coordinates closely with capital markets to pre-market deals to preferred lenders, run parallel credit processes, and secure bridge facilities where necessary. Financing terms (LTV, DSCR, amortization, covenants, prepayment) are negotiated to align with asset cashflow and exit options.

• Mandatory stress testing on interest-rate, vacancy, and rent-reversion scenarios.
• Requirement of reserve accounts for capex and cyclical cashflow variability.
• Limiting aggregate tenant concentration for commercial assets.
• Minimum covenant headroom thresholds (e.g., DSCR buffers) before approval.

1. Activate the 100-day plan: tenant outreach, immediate capex prioritization, lease re-rating opportunities, and operating budget alignment.
2. Assign asset manager and property manager with defined SLAs and KPIs.
3. Implement reporting cadence: monthly cash, quarterly financials, and investor updates.
4. Begin early refinancing or hedging execution per the financing plan where appropriate.

Qwoti targets bolt-on acquisitions to existing assets to drive scale economies: adjacent portfolios, additional floors, parking, or complementary units. Bolt-ons are underwritten for marginal return uplift and operational synergies before execution.

1. Structure JVs with experienced local partners for market entry or development exposure, with clear governance and aligned economic incentives.
2. Define exit mechanics and capital calls upfront to ensure predictability for institutional LPs.
3. Limit sponsor default risk through escrowed management fees and agreed dispute-resolution mechanisms.

Acquisition budgets explicitly model transaction costs including legal, tax, due diligence, broker fees, financing fees, and initial capex. Fee transparency is maintained with investors and any related-party arrangements disclosed and subject to approval thresholds.

• Acquisition yield vs. target yield
• Time to stabilize (months to target occupancy/NOI)
• Capex vs. budget variance
• IRR and equity multiple performance vs. underwriting
• Tenant retention and leasing velocity

Each acquisition includes a clear exit strategy: SPV sale, portfolio sale, refinancing/dividend recap, or securitization. Exit timing is evaluated against market liquidity, pricing, and investor liquidity needs; disposition documentation is structured to enable clean SPV transfers.

1. All acquisitions comply with documented conflict-of-interest policies and related-party transaction rules.
2. Independent valuations for material purchases and oversight by the investment committee or independent board members where required.

The acquisitions team runs post-mortems on completed and lost deals to refine underwriting assumptions, pricing thresholds, and sourcing channels. Lessons learned feed into updated playbooks and market targeting.

Sellers, brokers, and partners may submit opportunities to [email protected] with a concise package: executive summary, property address, GAV, NOI, rent roll, recent financials, and preferred timetable.

• Acquisition Checklist
• Investment Memo Template