‘Distress’ creates opportunities to add value: Balashev

The term “distressed assets” often has negative connotations but to Thomas Balashev it means an opportunity to add value.

 “It’s an area that we really want to focus on. We’re looking for ways that we can add value,” he said. “In our opinion the word ‘distressed’ just means something that needs refreshing, it needs regeneration, it has potential and it has a lot of value locked in.”

Talking to Real Asset Insight’s Richard Betts he said that this type of asset needs the right type of investor to look at the fundamentals in order to unlock it.

And it has a particular time horizon. “For our own fund, our strategy is looking to deploy capital within the next 18 to 24 months, add value, increase growth and improve cash flow, looking to dispose of these assets maybe over a five to seven year timeline,” he said.

And he said he has been fortunate. “We’ve launched an investment fund at a time when the whole property market has had a bit of a reset, so we’re now looking at with fresh eyes we’ve got different ideas.”

Click on the video above to watch the full interview or listen to the podcast below.