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Approach

Alpine Grove Partners specializes in building real estate operating companies that acquire and transform real estate internationally

The Alpine Grove investment approach is designed to align stakeholder interests, generate exceptional deal flow, and outperform industry standards. The Firm’s investment approach identifies potential investments in operationally-intensive sectors located in high quality markets.

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Alpine Grove’s target investments lie at the intersection of real estate, intrinsic value, and operations.

The Firm follows a disciplined investment framework with 5 central tenets:

01 / Dislocations in high-quality markets

Alpine Grove focuses on high quality markets due to their inherent resiliency. Alpine studies macroeconomic, regional, and country-specific research extensively to identify strong real estate markets that may exhibit distress but have the potential for recovery and growth.

<p><strong>Argyll Club, </strong>Eaton Gate, London</p>

Argyll Club, Eaton Gate, London

U.K. Flexible Office – Argyll Club

Alpine Grove acquired a flexible office operating business with a portfolio of prime locations in the central business districts of London. This was a unique opportunity to acquire the asset-backed business at dislocated pricing caused by COVID-19. Alpine Grove’s previous ownership of the business provides an operational advantage to restructure the business and position the platform for recovery and growth.

02 / Operationally-intensive sectors

Alpine Grove establishes operating companies with local, specialized management teams in operationally-intensive asset classes. The geographical specialization and operating expertise are competitive advantages that contribute to effective management and sourcing of exceptional deal flow.

<p><strong>Ishin, </strong>the b Fukuoka Tenjin Hotel, Fukuoka</p>

Ishin, the b Fukuoka Tenjin Hotel, Fukuoka

Japanese Hospitality – Ishin

Ishin was formed by Alpine Grove to acquire and manage hotels in Japan. Recognizing the demand and lack of supply in the limited service sector, the platform created a new proprietary limited service brand under Ishin called “the b”. “b” stands for bed, bathroom, and breakfast, and the hotels are characterized by stable performance and high operating margins. Ishin continues to operate hotels in central locations in major cities across Japan.

03 / Methodical pricing framework

Alpine Grove seeks to protect the downside risk of each investment, believing that over the long-term, intrinsic value remains relatively constant, while short-term prices can fluctuate dramatically. As such, Alpine Grove follows four pricing principles to identify fluctuations and opportunities to buy and sell assets at prices below and above intrinsic value.

Price to protect downside

Seek to price such that any investment made will return capital even in adverse circumstances.

Price on in-place metrics

Use in-place metrics such as price per foot, yield-on-cost and replacement cost, rather than speculating on future projections.

Price with a long-term view

Underwrite with a long-term view focused on fundamentals and not on market momentum which can quickly change.

Price on an unlevered basis

Analyze assets and businesses on an unlevered basis to limit the effects of credit cycles on pricing.

<p><strong>VPI, </strong>888 Brannan, San Francisco</p>

VPI, 888 Brannan, San Francisco

U.S. Creative Office – VPI

Cyclically low real estate prices in U.S. gateway cities after the Global Financial Crisis offered acquisition opportunities below replacement cost. Alpine Grove teamed up with an experienced West Coast developer to target media and technology tenants after recognizing their specific space requirements were not being met by the market. The Platform acquired and renovated creative office assets at pricing significantly below replacement cost. The in-place yield on total cost led Alpine Grove to be comfortable with existing rents in the short-term with a long-term view. The property was priced on an unlevered basis and represented an attractive risk-adjusted return.

04 / Transformative business plans

Alpine Grove Partners targets undervalued or dislocated real estate opportunities that require transformation to realize their full value. Alpine Grove and its operating businesses collaboratively design and execute business plans that may include repositioning, redevelopment, rebranding, or renovations.

<p><strong>Aurelis, </strong>Europaviertel, Frankfurt</p>

Aurelis, Europaviertel, Frankfurt

German Industrial – Aurelis

Alpine Grove acquired Deutsche Bahn’s non-operational real estate portfolio comprised of properties in close proximity to railway lines. Alpine Grove saw an attractive opportunity to redevelop undermanaged assets, improve operational efficiency, and develop unused land. Alpine installed a new management team and restructured operations, systems, and processes to build a best-in-class development and asset management business. Alpine Grove continues to improve the quality of the portfolio through interim sales, while continuing to add value to existing assets through development, redevelopment, and capital expenditure.

05 / Exit Proactively

Alpine Grove continuously evaluates the market prices of its assets in relation to their intrinsic values and seeks to exit assets when prices exceed long-term intrinsic values. Alpine Grove determines the maximizing exit method, selling via individual asset sales, private portfolio sales, or public offerings.

<p><strong>Spazio,</strong> Edificio Sedici, Milan</p>

Spazio, Edificio Sedici, Milan

Italian Industrial – Spazio

Spazio was established to address the demand needs for industrial space from Northern Italy’s design and manufacturing sectors. Alpine Grove partnered with an established operator to acquire assets through sale and lease-back transactions with Italian corporates. Spazio became Italy’s largest industrial platform, consisting of income producing logistics, warehouse, industrial, office and event spaces. Alpine Grove determined the maximum value for the platform could be reached through an IPO, thereby listing the company on the AIM London Stock Exchange and achieving liquidity for its investors.

alpine grove invests through unique capital structures designed to benefit its investors

The capital structure employed by the Firm is designed to align stakeholder interests with the term, operations, and business plan of underlying assets.

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