Oaktree Real Estate Opportunities Fund VII, L.P.
Purchases
Sales
OAKTREE REAL ESTATE OPPORTUNITIES FUND VII, L.P.
Appendix II: Evolution of Six Areas of Focus (Structured Finance)
($ in millions)
$1,500
1,000
500
0
(500)
(1,000)
HYPER-
LIQUIDITY
2006 2007
GLOBAL FINANCIAL
CRISIS
2008 2009 2010
2011
2012
Distressed Floating-rate CMBS
RECOVERY
2013
Senior Fixed-rate CMBS
2014
Liquidations
+
2015
SAMPLE DEAL: KERZNER CMBS
• Investment date: May 1, 2009
ROF IV, ROF V and Remington investment: $143.6 million (face),
$99.8 million (cost)
INVESTMENT PROFILE
• $1.25 billion 2006 floating-rate securitized loan as part of a $3.4
billion financing package
Confidential
●
●
Diverse portfolio of lodging assets primarily in Paradise Island, The
Bahamas
INVESTMENT THESIS
• Off-market transaction with a major Wall Street broker/dealer
• Attractive risk-adjusted returns with significant downside protection
Conservative cash flow and cap rate assumptions
Attractive basis that represents a 74% discount to peak valuation
Great upside potential if able to purchase loans/assets out of trust
The main asset (83% of allocated balance) is an iconic, irreplaceable
2,917 room ultra-luxury resort
(1,500)
As of June 30, 2015
Note: Reflects purchase and sale activity for vehicles in the Real Estate Opportunities, Real Estate Debt and Distressed Debt strategies, as well as other certain Oaktree-managed funds and accounts.
Structured Finance capital deployed includes $1.0 billion of equity for investments in Real Estate team-led transactions across all Oaktree-managed funds and $2.1 billion of investments for Legacy
CMBS Fund, of which $1.1 billion was cross-collateralized fund-level leverage. Realizations include $3.1 billion of sales.
This investment highlight represents the most recent investment within the Structured Finance area of expertise across real estate funds, excluding Legacy CMBS Fund. See "Legal Information and
Marketing Disclosures" section of the Appendix for important information regarding case studies.
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