Commercial Portfolio Optimisation
Hey guys,

Happy Friday! Hope you're all doing well.

I was wondering whether any of you have any guidance on any literature/textbooks that I could look at to solve a particular problem I'm having. I have a portfolio of underperforming assets that require intensive asset management. In an ideal world I'd like to flog the lot and be done with it but that isn't an option, I need to be able to asset manage and dispose on some and use proceeds to carry the other underperformers and keep the levered cashflow above water. Is there some sort of optimisation strategy that im blind to that you might know of I could look up?

Thanks in advance!
[{"id": "fi9wcy9", "text": "What kind of asset class in what market? What kind of debt? Sale is likely needed.", "replies": [{"id": "fi9zw5x", "text": "Hello!\n\nIt's a mixed bag, I'd say 60% Secondary/Tertiary industrial assets with the remainder in secondary offices. Senior debt is 40% @ 2.60% pa with another 25% interest only junior loan @ 5.00% pa(!!!).  My average 5-year cash on cash yield is about 1.00% which is horrendous! It's in the UK outside of London", "replies": [{"id": "fia07l9", "text": "Not aware of any specific strategy other than what\u2019s been suggested - you likely need to sell some to better support the rest. The challenge of course being that the easier ones to sell are likely the ones you\u2019d prefer to keep. Maybe test the waters with one good asset and one underperforming one - maybe you find a buyer who thinks they can turn the latter around. Good luck regardless.", "replies": [], "depth": 3}, {"id": "fia0a7o", "text": "There\u2019s no simple fix here.  It sounds like you need someone to go through your portfolio with you and develop a strategy to save it before the bank takes it.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ficl76u", "text": "Find a JV partner with the expertise and have them buy into your stack but keep a piece in the assets such that when they perform to a market expectation you can also ride along upwards to recover/gain alongside the recapitalization. \n\nWe do deals like this all the time and have a substantial portfolio across the US + most of europe. Would be happy to chat further on if the deal is the right fit for us if you want us take a look.", "replies": [], "depth": 1}]