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Today, hundreds of millions of acres of real estate in the United States are situated in the relatively low valued and inefficient rural real estate market from which institutional capital is essentially absent. Largely ignored within this segment of real estate are unique and attractive investment opportunities in tactical and value-added real asset strategies. These strategies include alternative uses for undervalued properties that can transform the properties into attractive investments through various means, including conversion of properties into mitigation and conservation banks and implementing active management regimes to reposition properties.
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Timbervest has specifically created and defined this asset class to be called “Crossover Assets™,” which encompasses real estate currently or previously used primarily as timber or agricultural land due to the one or more of the following:
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The location, historical use, topography, hydrology, ecology, wildlife and/or other characteristics have been converted or are prime for conversion into a mitigation or conservation bank. |
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Changing market demands, local market pressures, population growth, demographics, favorable regulations, entitlement processes, or other similar factors are suited for conversion to alternative uses through the implementation of a well-designed active management regime. |
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Governmental or conservation interests, water resources, environmental or ecological traits, or other similar property specific characteristics are undervalued relative to the returns available through the extraction of value from such characteristics. |
Significant and tangible environmental, demographic, social, and economic trends exist within the land component of the real asset investment class. This very specific segment of the investment universe has historically been virtually devoid of institutional capital. However, as institutional investors seek investments that provide greater portfolio diversity with relatively lower volatility to meet their growing liabilities, Timbervest believes investments in Crossover Assets will become an attractive and accepted institutional investment. |
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