Property Acquisition Strategy
- 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
Geographically diversified portfolio
Our approach
- A distinctive, large and diverse commercial property portfolio.
- 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 portfolio consists of mainly offices, geographically well spread across the regions of the UK outside of the M25 motorway and with a broad mix of tenants.
Investing in income-producing assets
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.
- Speculative development strictly limited to refurbishment programmes.
Active management of the properties
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 Asset Manager 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 Asset Manager utilises a range of approaches to each asset, tailoring the project programme for each property.
Opportunistic approach to the property market
Our approach
- A focus on exploiting pricing inefficiencies and mismatches between regional Core and Core Plus and primary property yields.
- 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 Asset Manager.
- Seeking to build the income growth and capital values of properties, taking undermanaged and underinvested properties to being attractive investments to be retained for yield or for disposal.
- An established borrower with long-term relationships in place with 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.
Highly experienced asset manager
Our approach
- The Asset Manager has the heritage of a long-established property investment management team.
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 secondary property market. The senior management team of the Asset Manager collectively have over 180 years of property experience, with a proven record of creating value.
Regions primed for growth
Our approach
- The resilient regions are expected to benefit from capital inflows and the strong rebound of the UK economy, which should conflate to ensure occupier demand for offices remains strong.
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 Asset Manager.
- The Asset Manager operates through a number of regional offices, implementing a targeted investment policy and individual property asset management plans.