Mujin T

Jun 04, 2017

Invested several deals since 2015, both in TIC recap and Land Developments in AZ.  

I think they are doing fairly well on the business execution of TIC deals at either par or above the proforma.  The reports are good but delayed up to 2m after quarter ended.  Couple of large tenant lease renews will be the key to take the deals to fruition.

However, the land developments in AZ are too ambitious and there are TOO MANY.  Some of the presentations are hyped. Especially, the exit plans are not proven.  They did get Virtua 91 entitlement as planed but the take out seems to be mainly by Virtua itself to form additional ventures to take out the land investors.  Whether this deal succession will be successful or even happening remain to be seen.  I'll definitely be out instead of investing into the new ventures.  

They seem to SPREAD themselves very thin into too many deals with the organization/personnel they have.

Another big factors for me to be skeptical is they charge high fees for themselves mostly upfront but have almost no co-investments themselves. 

So, jury is still out on this sponsor.  Only time can tell and I'll wait to see if some of the deals can be successfully exited.