This Case is aboutÂ FINANCIAL MANAGEMENT
PUBLICATION DATE: October 22, 2013 PRODUCT #: W13449-HCB-ENG
The morning of October 9, 2012 established the portfolio administrator for the Thackery Real Estate Fund (TREF) lost in contemplation. TREF was a huge investment fund that focused in commercial and industrial real estate. While TREF had numerous investors, there was a single big institutional investor, and it had asked for an update on the fund by the end of week. Weighing on the head of the portfolio manager proved to be a special industrial park in Montreal, Quebec known as the Center Corporate Abbott. He was focused predominantly on a suggested investment that needed $20 million to buy a finished, tenanted building called Building A.
From the exact same developer, the portfolio manager had purchased two other adjoining properties for $17 million in 2008. He understood the economical news on the other side of the world was not flushed in making his choice. In Quebec and Canada, the production sector had not beaten the challenges of the Great Recession of 2008. For Quebec particularly, in addition, it seemed like the voters may be tending towards another separatist authorities and news of corruption in the building sector had become daily fodder. The portfolio manager speculated whether he was supposed to pursue the investment and, if he did, how he would elucidate his recommendation to his depositor as early as Friday.