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Walton Capital Management
Classification: Land Based Investments
At last week's luncheon, Pierre gave members a brief overview of Walton Capital Management, then talked to members about the Real Estate Life Cycle and Walton's involvement in it. He also talked about Walton's investment strategy: The Four Pillars of Strength.
Walton Capital Management is a privately owned business founded in 1979 that is now operating in Canada, the U.S., Asia and Germany. With more than 30 years of experience, Walton has grown to be one of North America's leading real estate investment groups, creating land-based investments for individual and institutional investors worldwide. Their mission is to provide quality real estate investment products and services with integrity and professionalism.
Some additional facts about Walton Capital managment that Pierre provided include:
- they have 74,000 investors worldwide
- they have more than 55,000 acres under management
- they are managing assets over $2.7 billion CAD
- in 32 years they have never lost a penny
- their investment teams include professionals in land acquisition, land planning, land development engineering management, marketing and project finance.
- they have acquired land in and around Calgary, Edmonton, Ottawa, Brant, Simcoe, Niagara, Phoenix-Tucson, Dallas-Fort Worth, Austin-San Antonio, Atlanta, Washington and Charlotte.
Pierre explained that there are 4 stages to the Real Estate Life Cycle and although most investors are familiar with the last stage, Walton focuses on the first three stages allowing investors to participate at the earlier stages of the life cycle, which have traditionally only been accessible to those who can commit the sizeable capital required to secure and invest in the land.
Real Estate Life Cycle
- Undeveloped Land
- Concept Planning
- Development
- Developed Real Estate
Walton's investment strategy engages four distinct areas to successfully guide their land-based investment process from the research and acquisition of land through to exiting (including the distribution of proceeds to investors). They hold an interest in the majority of projects they syndicate, thus aligning their interests with those of their investors.
Their investment strategy is called the Four Pillars of Strength and it engages the following areas:
I. Research & Acquisition - Walton takes two to four years to study a particular North American market. They conduct extensive environmental, physical and financial due diligence on the land. They consult with local experts within the community. Thousands of acres are researched and, ultimately, only a fraction meets their standards for acquisition.
II. Investment Structuring for Syndication - Through their syndication model, Walton makes land-based real-estate investment accessible to qualified investors and purchasers. They syndicate land worldwide. Land-based investment structures are offered through dealers to qualified investors in Canada, the U.S. and Europe. In Canada, investment opportunities take two forms: Pre-Development Land (Growth) and Development Land (Cash Flow).
III. Planning & Development - Walton International Group's sister companies, Walton Development and Management L.P. and
Walton Development & Management (USA), Inc. (WDM), take the land acquired through a concept planning and entitlement process to prepare it for what they feel is the most suitable use. The team at WDM has a collective experience of over 300 years in land planning, land development engineering, project management and finance. While land within urban or regional growth corridors may naturally appreciate, Walton looks to protect, preserve and realize the highest and best use of the land through the municipal planning and/or development approval processes. Due to the size and scale of the properties that they manage, they are often able to collaborate with local governments on the direction and type of development in a given area. Walton will plan and develop an entire community or neighbourhood in collaboration with these agencies with the aim of achieving the best development potential of these lands. An exit may occur at any of the planning stages, depending on when offers are received, and, if required, approved by their investors.
IV. Exit - While the holding period and exit strategy will be different for each project, Walton actively seeks out and works
with regional, national and international purchasers for the land. Historically, Walton-managed properties have been sold to: Municipalities, Publicly traded real estate developers, Private developers, National and regional homebuilders and Institutional investor syndicates.
To learn more about Walton Capital Management, their develoment projects or how you can diversify your portfolio
visit their website www.walton.com. To find out about investment opportunities and if you qualify, contact Pierre Dulude at (613) 299-7040 or Michelle Martel at (613) 613-915-9677.
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