How We Create Value

Our overriding strategy is to invest in property with weak tenancy at reasonable pricing, and to subsequently reposition it to investment grade property (with stabilized and secure income) that can be exited at full pricing. Creating maximum value requires a great deal of hard work, normally over three to five years.

IDENTIFYING INVESTMENT OPPORTUNITIES

Mengus continuously monitors the market for case-driven investment opportunities where competition is less fierce than for investment-grade property. This is typically the case for properties that are partly vacant or where required maintenance has been deferred.

Unlocking Value Potential

To maximize market value, our properties are upgraded to higher quality categories, where demand from tenants is generally stronger. As part of this phase, our buildings are individually branded to create a visible and attractive location for companies. New tenants are then actively recruited through targeted marketing and leasing processes.
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Above all, it’s a people business where success depends on a close collaboration with leading service providers and other key professionals in our network. Because our search for superior value potential relies on current market insights and close teamwork, we devote great attention to developing our network. Again, it’s all about hard work and an allocation of management resources in relation to assets under management that is significantly above the market average.
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One of our core strengths is that our leasing expertise is an integral part of the investment decision process. No property is acquired without careful consideration of its leasing potential and associated risk.

Stabilized Property

By upgrading a building to a higher quality segment and increasing its occupancy rate, we are able to expand the field of potential buyers for a given property investment.
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Many institutional investors consider investment-grade property, where competition for investment opportunities tends to be fierce. If Mengus is successful in repositioning a property, it is then possible to exit the investment at full pricing and to obtain superior returns.

Our hands-on approach to value creation has enabled us to outperform competing investments.

Per Niklasson, CEO & Senior Partner

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