Overview

We aim to deliver market-leading returns by developing dynamic properties and letting them to diverse tenants on flexible terms, and applying a proactive approach to asset management.

Locate Assets

Locate assets with significant development or asset management potential within select locations or asset classes. We use our knowledge of the market and our extensive network of contacts to seek out assets where we see the potential to add significant value. Our development schemes are focused on delivering innovative and modern space, whilst retaining local character. We target areas where we anticipate strong growth. Our asset management opportunities focus on maximising income through attracting and maintaining a balanced and diverse portfolio of tenants and driving increases in the rental value through refurbishment programmes that make intelligent use of space and deliver high yielding assets.

STRUCTURE AND FUNDING

We use our own capital combined with external debt where we see value in holding the asset for long term income and capital growth.

We identify a joint venture partner, limiting our capital commitment and risk exposure, whilst linking our return to performance.

We manage the project on behalf of a partner, sharing in the profit on the successful sale or letting, with minimal equity invested. When the Group identifies assets that it intends to develop or asset manage and hold for the longer term, it uses its own capital combined with appropriate external debt.

Where we see significant potential to create profit in the short to medium term and are keen to limit our equity commitment and risk exposure, we look to bring in a partner. Our approach to working with our partners includes:

• Co-investing alongside a larger partner where we have a minority equity stake, whilst receiving a “waterfall” payment whereby we obtain a greater profit share than the percentage of our investment, depending upon the profitability of the project. This strategy is used for the developments at Barts Square, London EC1 and One Creechurch Place, London EC3.

• Managing the development process from site acquisition, through construction to letting or sale. In these structures we do not own the asset, committing no or minimum equity. Our return is linked to the profitability of the development, allowing us to potentially benefit from a significant profit that reflects our contribution to the project’s success. We are using this strategy in the development of the office at One Bartholomew Close, London EC1.

DEVELOP, LET & ASSET MANAGE

We actively manage our assets throughout their development, working with trusted contractors and focusing on quality, efficiency and safety.

We look to let our properties to diverse tenants who are financially robust.

Through clever asset management we drive the rental value forward while maximising occupancy.

We actively manage our assets from inception to completion. Our close involvement allows us to continue to develop and improve the design whilst being able to rapidly respond to challenges as they arise. Key to this is working closely with trusted contractors who share our values and are focused on quality, health and safety, sustainability and consideration for the local community.

Building strong relationships with our tenants and having a good understanding of their business, combined with a detailed knowledge of the market, is fundamental to our approach to maximising rental value and maintaining a high level of occupancy. We actively look to redevelop space where we can see the opportunity to better meet market demands, allowing us to drive rental value and help secure the future of the asset.

EXIT

Exit through sale at the right point in the market or upon completion of projects, recycling capital into new opportunities or repayment of finance.

Determining the most appropriate time to sell an asset is critical in crystallising value. We look to dispose of a property when we believe future market growth is limited, where we have limited opportunity to add further value or when we see greater value elsewhere. Our view of the market and the availability of other opportunities determines whether we reinvest the equity into new properties, repay debt or return capital to shareholders.