We look for projects that require repositioning as well as new build opportunities. We manage every asset to increase its value and we always consider a clearly identified exit strategy at the outset, including refinancing and holding.
Most of our development opportunities are sourced off-market ensuring we have access to opportunities that others are not aware about. We use our network of industry relationships to help us identify, evaluate and proceed with investment opportunities.
Of special interest are existing properties in urban districts with improving demographics. We are keen on opportunities that permit any mixture of the following uses:
- multi-family residential
- student accommodation
- storage
- retail
- advertising
- signage
- parking
We have considerable experience in retail-residential schemes, as well as those that are exclusively residential. We know that the way people use real estate is changing in different areas, for example there is now more demand for quality urban housing and sometimes at the expense of other uses.
We are keen on areas that demonstrate positive, improving income and demographic trends. And to minimise risk, we diversify investments across regions, asset types, and tenants.
We are proud of our track record of making money on every deal we have done – typically an IRR of at least 15%. These returns are only possible where there is a clear exit strategy which will allow us to realise value.
We enhance the value of real estate assets by:
- making selective capital investments to improve the properties such as providing more modern floorplates and adding additional floors
- controlling operating costs
- managing risk diversification
And we enhance income by:
- intelligent target marketing
- improving a property’s rent roll (e.g., negotiating out tenant options, implementing landlord orientated lease terms, eliminating below-market leases).
- managing rollover risk in multi-tenant buildings too – for example by managing single tenant size, and staging lease expiration dates.
The parameters of the typical investment that we are involved with is as follows:
| Project Size (GDV) | £2,000,000 – £10,000,000 |
| Senior Debt | 40% – 70% |
| Strategies | Value Added or New Development |
| Project Returns | 20% IRR – Leveraged |
Important Factors for us in analysing investments opportunities include:
| Site | Location, Access, Demographic Profile, Planning Permits |
| Project | Feasibility, Design, Use |
| Market Comparables | Supply/Demand Trends, Difficulty for Competitors to Replicate, Financing Ability, Cost Analysis |
| Exit | Demand for Finished Product, Availability of Long Term Finance |