Our Business Model

• Buy secondary property assets well
• Establish an asset management plan
• Improve the potential of existing income producing investments
• With a strong in-house approach to asset management
• Attention to covenant strength details and close management of the tenant base
• Exploiting development potential where available
• Asset disposal after the maximisation of the asset’s income potential

Our approach

• A distinctive, large and diverse commercial property portfolio and tenant roster.
• An approach that diversifies the investment risk of the portfolio and enables better management of the timing of lease re-gears, new lettings, geography and sector.

How we add value

• The property portfolio is geographically well spread across the regions of the UK outside of London and the M25 motorway and with a broad range of tenants.

Our approach

• The Group has a strict set of investment criteria to invest, predominately, in income producing assets capable of delivering an attractive total return to our shareholders.

How we add value

• Investment decisions are based on identifying strong underlying fundamentals, including inter alia: prospects for future income growth; sector and geographic prospects, lease length, initial and equivalent yields, and the potential for active asset management.

Our approach

• The Group prides itself on maintaining a close relationship with its tenants and, in the intensive granular management of its properties, a very hands-on approach.
• Our aim is to provide a consistent approach to improving returns, thereby enhancing the quality of the underlying portfolio.

How we add value

• The Investment Adviser undertakes all of the principal property management activities in-house and remains close to its tenants, ensuring an immediate understanding of their requirements and enabling better decision-making capability.
• The Investment Adviser utilises a range of approaches to each asset to maximise shareholder value.

Our approach

• A focus on exploiting pricing inefficiencies and mismatches between regional Core and Core Plus and primary property yields.
• During 2025 the Company has undertaken accretive value add projects.
• From such opportunities, the Group will acquire, hold and sell commercial real estate that it believes to be mispriced.
• Utilising leverage to build the acquisitions capability of the business.

How we add value

• An opportunistic approach to UK commercial property with recycling of capital from the portfolio refreshment programme and aiming to acquire properties where the Group can add value through the expertise of the Investment Adviser.
• Seeking to build the income growth and capital values of properties, by taking under managed and under invested properties and turning them into attractive investments to be retained for yield or for disposal.
• An established borrower with long-term relationships across a number of UK banks. The Group will exploit opportunities to improve total returns utilising leverage.
• With debt maturing and opportunities to renegotiate existing facilities, the Group aims to reduce its funding costs.

Our approach

• The Investment Adviser has the heritage of a long-established property investment management team.
• ESR Europe LSPIM is head quartered in Glasgow and has a number of offices around the UK, working on Regional REIT.

How we add value

• The capabilities and track record of the management team, including knowledge, expertise and established relationships, provide an important competitive advantage for operating in the fragmented UK regional property market. The senior management team of the Investment Adviser collectively have over 180 years of property experience, with a proven record of creating value.

Our approach

• The regions are expected to benefit from future capital inflows, a strong rebound of the UK economy and governmental resource allocation, which should conflate to ensure occupier demand for offices grows.

How we add value

• The investment policy focuses on a portfolio of offices located outside of the M25 motorway, broadly based on the region’s economic worth and population mix.
• The Group seeks to enhance income growth and capital values through the proactive approach of the Investment Adviser.
• The Investment Adviser operates through a number of regional offices, implementing a targeted investment policy and individual property asset management plans.