Our aim is to provide a service which not only provides excellent returns but also absolves the client from much of the day to day responsibility for the investment management process as the client feels is appropriate.
We look to identify the markets in which rental growth and capital appreciation will be greatest and we aim to actively manage the portfolio to protect and enhance income streams. To this end, we recognise the importance of the occupier in driving returns from real estate.
Our investment approach is based on the three Rs – Research, Risk and Return
Industrial research and on the ground market knowledge is combined with the relevant risk/reward profile at both a property and portfolio level. This enables us to provide clear structured advice according to our client’s investment objectives.
Any agreed strategy will reflect the risk profile that the client is able to tolerate. It is essential to identify and understand the sources of risk and separate them into their components at fund, portfolio & property levels.
At a fund level, the risk components can be inherent risk, intentional risk and incidental risk. Inherent risk comes from specific return risk, intentional risk is generated by taking active positions relative to the market norm and incidental risk arises through incremental portfolio management where a sequence of events/deals decisions can lead to an accumulated risk.
At a portfolio level, the risks are those of leverage, incentivisation and alignment of interest of manager, manager skill, corporate governance & taxi regulatory risk.
At a property level, the risk can be divided into property type, location, credit risk, vacancy risk, investment size risk, physical obsolescence and regulatory/tax risks.
A well designed portfolio will reduce the risk through diversification without sacrificing returns.
Returns can be enhanced through:-
- tactical allocation
- superior asset selection and
- above average business (asset) and operational (property) management
