In early December 2013, Roxann Biller, Associate at the Chicago-based private equity firm Delta Quantitative Real Estate Capital, was asked to assess the risk associated with the firm's first potential overseas investment. Haifu Sentā Gendaino (HSG) was a large multi-tenant logistics property located in the Gaikando area of Tokyo. High-quality tenants currently occupied the property, so at first glance the risks of investing in the property seemed minimal. However, Biller knew that she had to consider the potential drawbacks. This would mean gaining a better understanding of each tenant, trying to forecast the future condition of the Tokyo logistics market, and considering what new risks her firm would face because the property's cash flows were in a foreign currency.
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Case Study|
August 28 2017
Expect the Unexpected: Risk Measurement and Management in Commercial Real Estate
This case was prepared by Professor Craig Furfine with research assistance from Dan Tarpey ’15.
Publisher: Emerald Publishing
Received:
January 21 2021
Online ISSN: 2474-6568
© The Kellogg School of Management at Northwestern University
2017
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Received:
January 21 2021
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Furfine C (2017;), "Expect the Unexpected: Risk Measurement and Management in Commercial Real Estate". Kellogg School of Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/case.kellogg.2021.000049
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