Although the ability to provide our clients with regular income distributions is an important factor in every acquisition, we are essentially ‘value-add’ focused. This means that while we do from time to time acquire ‘vanilla’ assets, we tend to prefer investments that will not only benefit greatly from intense management practises but are also ripe for an enhancement in capital value.
There are numerous ways to increase the capital value of a property. Examples may include obtaining council approval for a development or change of use, upgrading the services of the building in order to attract a higher energy rating (and consequently a higher rental level) or simply applying a remixing strategy (replacing tenants with more suitable ones).
Whatever the means, the goal is always to acquire an asset we are confident will generate a strong and reliable total return over the Fund Term.
A variety of different types of opportunities are considered for acquisition however for some time now we have found that the best value has been in assets with an office and/or retail bias.
The geographical location of the asset is very important. Not only must it convince us that the area will remain desirable or indeed become more desirable to potential tenants in the foreseeable future, but it must also not be an obstacle preventing us from realising the properties full potential. Sometimes a great opportunity is simply too small or too far away to warrant the attention it deserves.