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Sourcing
Discover Qwoti's property sourcing strategy leveraging off-market networks and data-driven screening to acquire core+ residential and commercial assets.
Overview
Qwoti’s sourcing is a disciplined, multi-channel process designed to identify high-conviction commercial and residential opportunities across respective geolocations. We combine local market expertise, institutional networks, and data-driven screening to secure assets that fit our debt-first, SPV-based investment model and institutional return mandates.
Sourcing Philosophy
- Proactive & relationship-led: prioritize off-market and preferred-bid processes sourced through long-term broker, developer, and institutional seller relationships to reduce competition and information asymmetry.
- Market-informed selectivity: target cities and micro-markets with resilient demand drivers (demographics, employment, transport links) and constrained supply dynamics.
- Risk-adjusted focus: prefer assets where stabilized cash flows can support conservative LTVs and meet DSCR thresholds, reserving equity for strategic value-add opportunities.
- Repeatability & speed: standardize playbooks and approval thresholds to move decisively on time-sensitive opportunities while maintaining rigorous diligence.
Primary Sourcing Channels
- Direct relationships with institutional sellers (pension funds, insurers, REITs) and large private owners
- Broker networks and preferred-agent arrangements in target markets
- Developer and JV pipelines for selective forward-purchase and repositioning opportunities
- Debt-originators and servicers (NPL portfolios, loan sales) for distressed or special-situation opportunities
- Local operating partners and property managers for on-the-ground deal flow
- Proprietary data screening and market analytics to identify underpriced or overlooked assets
Market Targeting & Allocation
We prioritize Western European markets with stable legal frameworks and transparent transaction processes. Initial target tiers include gateway cities for scale and liquidity, and select secondary cities offering rental growth and yield pick-up. Geographic and sector allocation is calibrated to preserve portfolio diversification and match investor mandates.
Deal Origination Workflow
- Continuous market scanning: automated and analyst-driven screens run against pricing, vacancy, rental growth, and transaction volumes.
- Relationship cultivation: proactive engagement with brokers, sellers, and local partners to generate early sightlines into opportunities.
- Preliminary assessment: quick financial and legal screen to assess fit against investment criteria (size, NOI yield, tenant profile, financing feasibility).
- Indicative offer & exclusivity: where appropriate, present an indicative bid and secure short exclusivity to complete due diligence.
- Diligence & structuring: run parallel financial, legal, technical, environmental, tax, and leasing due diligence; structure SPV and financing terms.
- Approval & close: follow standardized investment memo and approval matrix; secure debt commitments and finalize acquisition.
Underwriting & Screening Criteria
- Primary metrics
- Revenue stability
- Condition
- Local context
- Legal constraints
Competitive Positioning in Bidding
- Speed with certainty: deploy pre-underwritten debt capacity and bridge financing to present timely, financeable offers.
- Clean legal structures: standardized SPV templates and pre-negotiated lender documentation reduce execution risk for sellers.
- Flexible consideration: ability to provide equity co-invest alongside institutional partners or accept vendor financing where it improves returns.
- Local presence: leverage in-market partners to confirm assumptions quickly and instill seller confidence.
Structuring Considerations at Origination
- SPV setup: single-asset or small-portfolio SPVs established before close to enable asset-level financing and clean transferability.
- Debt sizing: model lender appetite with target LTV and covenant sensitivity; plan for hedging or fixed-rate conversions if required.
- Tax-efficient purchase: select acquisition vehicle and jurisdictional wrapper to optimize transfer taxes and withholding exposures.
- Investor allocation: pre-commit co-invest or managed-account interest from anchor institutional partners to accelerate closing.
Due Diligence Integration
Qwoti runs a parallel, integrated diligence process that compresses timelines without sacrificing rigor: financial modelling, legal and tax opinions, technical surveys, environmental reports, and leasing audits proceed concurrently under a single project lead with clear decision gates.
Post-Acquisition Transition
- 100-day plan activation: tenant engagement, capex triage, immediate leasing priorities, and budget realignment.
- Handover to asset management: operational KPIs, reporting templates, and property manager SLAs enforced.
- Refinancing roadmap: finalize medium-term lender structure, apply hedges, and establish reserve accounts where required.
Metrics & Sourcing KPIs
- Hit rate: ratio of closed deals to exclusivity bids
- Average time from term sheet to close
- Off-market percentage of acquisitions
- Deal pipeline depth and weighted expected value
- Cost per deal sourced (internal + external)
Partnerships & Local Network
We maintain strategic partnerships with local brokers, developers, legal and tax advisors, debt originators, and property managers. These relationships provide on-the-ground intelligence, deal flow, and execution capacity essential for efficient cross-border operations.
Technology & Data
Qwoti uses market data feeds, proprietary screening models, and portfolio analytics to identify anomalies, track pricing trends, and prioritize opportunities. An internal CRM and pipeline management system ensure transparent deal-tracking and rapid resource allocation.
Sourcing Governance
- Centralized investment committee with delegated approval thresholds for expedited deals
- Documented conflict-of-interest policies and related-party transaction protocols
- Standardized investment memo template and mandatory sensitivity and stress analyses
- Regular post-mortems on lost and won deals to refine sourcing strategy
Contact for Deal Submission
Sellers, brokers, and partners may submit opportunities via mailboxes listed bellow. Provide a concise information pack: executive summary, address and key metrics (GAV, NOI, leases), recent financials, and desired timetable.
- General Enquiries [email protected]
- Aqusitions [email protected]
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