Business Model

Our market knowledge and deep occupier relationships are integral to our investment decisions. We leverage these relationships and our property expertise to generate assets with long and strong income characteristics.

Once we have added value, a review of the future performance and prospects for each asset is undertaken, and whether to sell and recycle the capital. We are unemotional about our portfolio and believe that each asset has to justify continued ownership.

Knowledge

Occupier relationship + Market intelligence

Shape asset decision

Invest

Strategy

  • Focus on retailer-led distribution, out of town and convenience-led retail
  • Occupier-led, working with successful retailers
  • Asset management opportunities to create desirable real estate

Action

  • 90% of portfolio in core sectors against 55% at merger in 2013
  • High occupancy rate of 99.7% demonstrating that we meet occupier needs
  • 50 asset management transactions across 2.6 million sq ft, institutionalising our assets and contributing to a yield compression of 60 bps

Strategy

  • Purchase and forward fund the build of assets
  • Provides a financing return during construction
  • Pre-let high quality occupier

Action

  • Forward funded a 690,000 sq ft distribution centre in Warrington
  • 7.5% funding yield received during the build
  • Pre-let to The Hut Group, a No. 1 ranked retailer by Sunday Times’ Profit Track in 2015

Strategy

  • Acquire land suitable for future developments
  • Normally bought subject to planning approval
  • Pre-let or significant occupier interest

Action

  • Bell farm, Bedford purchased conditional on planning
  • 37 acre site providing up to 750,000 sq ft retail distribution scheme
  • Strong retailer demand for location with pre-let expected shortly

Strategy

  • Focus on retailer-led distribution, out of town and convenience-led retail
  • Occupier-led, working with successful retailers
  • Asset management opportunities to create desirable real estate

Action

  • 90% of portfolio in core sectors against 55% at merger in 2013
  • High occupancy rate of 99.7% demonstrating that we meet occupier needs
  • 50 asset management transactions across 2.6 million sq ft, institutionalising our assets and contributing to a yield compression of 60 bps

Strategy

  • Purchase and forward fund the build of assets
  • Provides a financing return during construction
  • Pre-let high quality occupier

Action

  • Forward funded a 690,000 sq ft distribution centre in Warrington
  • 7.5% funding yield received during the build
  • Pre-let to The Hut Group, a No. 1 ranked retailer by Sunday Times’ Profit Track in 2015

Strategy

  • Acquire land suitable for future developments
  • Normally bought subject to planning approval
  • Pre-let or significant occupier interest

Action

  • Bell farm, Bedford purchased conditional on planning
  • 37 acre site providing up to 750,000 sq ft retail distribution scheme
  • Strong retailer demand for location with pre-let expected shortly

Plus

Finance

Plus

Add Value

Strategy

  • Strong and rising income
  • Long income
  • Secure income

Action

  • Contracted income increased by £7.6 million
    44% of portfolio subject to contracted rental uplifts
  • WAULT increased from 12.7 to 13.1 years. Only 1.8% of portfolio has lease expiries in next five years
  • Quality list of tenants, demonstrated by very low tenant defaults in year
    Ensure assets meet responsible business requirements – only 2.9% of assets have an EPC rating lower than E

Strategy

  • New lettings
  • Successfully negotiate rent reviews
  • Re-gear leases

Action

  • 28 lettings undertaken across 469,000 sq ft, delivering an uplift in rental income of £1.9 million
  • 20 rent reviews across 2.1 million sq ft delivering £0.6 million of rental income uplift
  • Two re-gears in the year, most notable at our retail park in Kings Lynn which delivered a rental income uplift of £0.2 million

Strategy

  • Refurbish, redevelop, extend and build additional space
  • Undertake larger scale distribution developments
  • Work to achieve favourable planning decision and develop within 18 months

Action

  • Committed developments across 2.0 million sq ft in progress
    Conditional development pipeline of 1.1 million sq ft
  • 1.1 million sq ft Islip distribution under construction
    Achieve BREEAM very good standard
  • 19 planning consents received on 1.3 million sq ft. Average build time on current developments is 10 months

Strategy

  • Strong and rising income
  • Long income
  • Secure income

Action

  • Contracted income increased by £7.6 million
    44% of portfolio subject to contracted rental uplifts
  • WAULT increased from 12.7 to 13.1 years. Only 1.8% of portfolio has lease expiries in next five years
  • Quality list of tenants, demonstrated by very low tenant defaults in year
    Ensure assets meet responsible business requirements – only 2.9% of assets have an EPC rating lower than E

Strategy

  • New lettings
  • Successfully negotiate rent reviews
  • Re-gear leases

Action

  • 28 lettings undertaken across 469,000 sq ft, delivering an uplift in rental income of £1.9 million
  • 20 rent reviews across 2.1 million sq ft delivering £0.6 million of rental income uplift
  • Two re-gears in the year, most notable at our retail park in Kings Lynn which delivered a rental income uplift of £0.2 million

Strategy

  • Refurbish, redevelop, extend and build additional space
  • Undertake larger scale distribution developments
  • Work to achieve favourable planning decision and develop within 18 months

Action

  • Committed developments across 2.0 million sq ft in progress
    Conditional development pipeline of 1.1 million sq ft
  • 1.1 million sq ft Islip distribution under construction
    Achieve BREEAM very good standard
  • 19 planning consents received on 1.3 million sq ft. Average build time on current developments is 10 months

Level of risk

Evaluate

Review

Hold

Assets which deliver target returns

or

Recycle capital

Assets where value has been maximised

Delivered by Investis – link to website (opens in a new window)