Our philosophy is to focus on:

Focus on assets that can be acquired at below replacement cost (including land)
Focus on regional markets with a supply/ demand imbalance
Pool assets which provides greater diversification, reducing the level of risk
Focus on assets which provide a yield arbitrage of at least 500bps between stabilised yield and senior debt cost

Sector focus

Regional multi-tenanted real estate characteristics and resulting benefits.

Regional towns rather than capital cities
Higher yields
Less cyclical and more stable rental levels
Multi-let properties
Diversification of unit sizes, tenant type and credit risk
Restricted supply due to alternative use and limited development pipeline
Many assets acquired at or below replacement cost
Varied tenant base from global companies to SMEs
Resilient demand
Limited concentration and credit risk
On-line retail increasing demand for industrial and retail warehouses
Growth in tenant base and rental growth
Reduced supply and increasing demand
Strong rental growth

Opportunities

The current market environment presents a number of exciting opportunities across Europe.

We are seeing encouraging equity investor appetite for value-add and high-yielding regional commercial real estate, and have identified a pipeline of deals offering gross stabilised yields at the asset level in excess of 7% per annum which is particularly attractive in the current low interest rate environment.

To find out more contact