The Cherrybrook Capital Investment Process
The Cherrybrook Capital investment process begins with extensive national and regional macro-economic research. Its regional macro analysis focuses on specific regions and asset sub-sectors that indicate benefit or potential upside from strong fundamentals. Fundamentals include:
- Components of regional gross domestic product;
- Supply / demand relationship of asset sub-sectors, this includes new numbers of building permits issued versus organic regional job growth;
- Trends in rents, vacancy rates and land values;
- Market demographics including crime, health and education;
- Asset location and key asset attributes including distance to public transport, employment, shopping and entertainment.
A bottom-up financial statement analysis is executed for each target asset. Detailed analysis is undertaken to understand the Profit & Loss Statement, Balance Sheet and Cash Flow profile. The aim of this analysis is to produce a Net Present Value calculation to clearly identify intelligent asset acquisitions.