• THE PRESERVATION GROUP
  • KING HOWINGTON & ARTHUR A. ALLEN COMPANY

Preserving what matters most

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Welcome to TPG

The Preservation Group is committed to preserving what matters most; investor income, capital and green space.

About TPG

The Preservation Group identifies, acquires and manages high return real estate investments on behalf of their own capital and investors. Privately owned and headquartered in Atlanta, GA, management has combined investment experience of over 90 years.

Aligned Interests

TPG management is a significant investor in every deal it sponsors. TPG profits are directly related to investor profits in every deal.

Insight

9 decades of Partner experience through all kinds of economic environments are applied to every investment decision.

Performance

• TPG 2015 Participating notes
paid 19.8%
• TPG 2016 equity deals
earned 70%+
• TPG 2017 Pro forma
base case 20%+

On-line Subscription

Sophisticated investors invested over $10 billion in 2016 through on-line funding platforms. TPG’s securities allow investors to participate in high and unique land based returns.

What we do

We make money for our investors. In our world that happens when you buy right. Nimble, opportunistic and disciplined by quantitative and qualitative metrics, our success is driven by capital and achieved through insight. To learn more, request a login.

FUNDING

Funding for acquisitions comes from TPG Participating Notes. These securities mature in 2 - 3 years, accrue an 8% preferred return as well as earn 1/3 of any of the collateral property company operating profits or refinancing gains. Management invests in TPG Participating Notes on the same basis as other investors.

Identify

TPG has a significant deal pipeline and allocates capital based on each deal’s size and economics. Each target property is carefully evaluated and appraised prior to entering any purchase contract.

Contract

Purchase Contracts allow for further diligence prior to closing. Included in the comprehensive evaluation prior to closing are title searches, zoning regulations, preliminary appraisals, development scenarios, surveys, and related research.

Reposition

Repositioning and improving property visibility is a core strength of TPG. Properties acquired typically have excellent but unrecognized development potential which yields excellent returns when properly managed. Suitable agricultural lands have tax equity greater than their purchase cost.

Refinance

Refinancing acquisitions with all equity has driven high returns for TPG investors since our inception. Tax benefits through conservation easements can be shared with investors through proper structuring, while maintaining purposeful business operations. When TPG sells its property company equity, participating notes receive principal payments, 8% annualized preferred returns, and a 1/3 share of the gains on the property company disposition.

Execute

Planning and executing on behalf of the refinanced property company remains the responsibility of TPG. The new equity owners will approve a plan to either develop, hold or preserve the property through a conservation easement. Equity buyers receive a pro rata share of any profits and losses going forward, no additional capital calls for 3 years, along with significant positive cash flow from related tax benefits.

MAKING MONEY WITH PRESERVATION GROUP

PG Participating Note holders earned an APR of 21.5% in 2016.  The notes financed property acquisitions and participated in the operating and refinancing profits of the PG assets that are held as collateral for the notes.  When PG sells the collateral the note holder receives their principal, a preferred return and participates in the collateral’s operating profits and refinancing gains according to the terms and conditions of the participating note.

Equity owners (PG and others) return on their investment come from controlling significant unlevered timber, agricultural and mineral assets, development opportunities, as well as fiscal incentives related to agriculture and land conservation.

Key Metrics for PG investments:

  • Tax Equity in excess of purchase price.
  • Location in path of long term development trends.
    The southeast is forecast to increase in population 90% in the next 40 years.
  • 100% mineral rights, access to public roads and major utilities.
  • Proforma returns achieve base case expectations of 15% annually net to investor.

Target acquisitions are often under duress. Owners either lack the financial capacity, patience, or skills to achieve higher returns from their property.  PG’s deep experience, skills and network enable the high returns its owners and investors have enjoyed and seek for the future.

OUR FUN FACTORS

Miles Traveled

SQ FT ACQUIRED

Coffee Cups

PHONE HOURS

Our Team and Key Advisors

What Investors Say

PG Cornerstones

Tax Efficiency

Investors single largest cost is tax. PG operations are highly tax efficient because of the fiscal incentives for agriculture and conservation.

Value

Urban land now trades at over 1,000 times the value of rural land in the Southeast US. When spreads reach such a magnitude, smart money gets long.

Expertise

Preservation Group management has advised and executed on well over a billion dollars of sophisticated real estate and private equity strategies. Combined we have over 90 years of experience in our field.

Demographics

Over the last century the Southeastern US has grown faster than anywhere else in the country by a significant margin. The population is projected to increase 50 million people in the next 30 years. The resulting development pressure will positively affect land values and is a cornerstone of PG’s strategy.

WHY INVEST WITH TPG?

There are three keys to successful investing and they are the management, the management, and the management. We are a family run land company and have a deep personal interest in our investor’s success, because it correlates directly to our own success. Paying close attention to our partner’s financial success pays us large dividends in repeat business.
Operational details are our bread and butter. Paying attention is one of our skills, paying attention to details is one of our strengths. We believe detailed insight drives performance and our experience in identifying profitable opportunities is a good example of just that.
TPG invests alongside every note investor on the same terms and conditions. We eat our own cooking. This alignment of interests assures our investors they are getting our best thinking and business execution.
Innovation
TPG’s unique management background allows investors to capture sources of return heretofore unavailable to them. TPG’s investment structures allow greater flexibility and higher returns with lower fees than any other investment of its genre. TPG management has developed unique structures for decades and invested globally managing and deploying 8-10 digit portfolios.
Scale
In land, scale has everything to do with dramatic increases in profitability. As more and more investors adopt the TPG platform both the investors’ and TPG’s profitability increases.
Value
TPG offers investors real value through its contrarian, contra-momentum approach. We make money the old fashioned way, we earn it by working smart and making highly informed investments in one of the most inefficient markets in America, rural land. Our ability to create liquidity in a market that is generally highly illiquid is a core value in our strategy.

Across our world

PRESERVING WHAT MATTERS MOST

Contact Us

404-631-6330

The Preservation Group, Atlanta GA

invest@preservationgroup.com
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