More about the portfolio

Research
Research is focused on cyclical and structural trends in order to determine market strategy and exploit mispricing. Occupier demand is increasingly concentrated in ‘Winning Cities and Regions’ that offer a competitive advantage in terms of higher levels of Gross Domestic Product (‘GDP’) and should, therefore, generate higher real estate returns.

Thematic investment
Thematic investment driven by macro-trends but focused on segments where a hospitality mindset, coupled with local operational asset management expertise, can deliver impact, sustainability and alpha. 

• Operational – hospitality mindset, business understanding, flexibility 

• Flexibility – flexible leases, shorter-term, turnover rents 

• Rise of e-commerce and changing consumption – last mile industrial/warehousing close to major cities

Winning Cities and Regions
Occupier demand is increasingly concentrated in ‘Winning Cities and Regions’, those that offer a competitive advantage in terms of higher levels of GDP, employment and population growth; differentiated local economies with higher value industries; well-developed infrastructure; and places where people want to live and work. Winning Cities and Regions will change over time and investments will be made in other locations where we see higher rates of future growth that could lead to mispricing opportunities. 

• Differentiated economy: Globally-facing, financial services, TMT hubs, life sciences and value add manufacturing.

• Infrastructure improvements: Transport, distribution, energy and technology. 

• Employment growth: High-value new jobs, wealth effect and population growth. 

• Environment: Live and work, tourism and amenities, universities, cathedral cities, dominant retail and leisure.

Business plan-led approach
Our starting point is our annual fund strategy statement which defines our activities over the coming three to five years and identifies key objectives at both fund and asset level. Our aim is to deliver incremental outperformance year-on-year. 
We aim to generate the majority of the target outperformance through good stock selection and active asset management. Each asset is managed in accordance with its individual business plan. The business plan is the focal point for identifying and implementing the active management strategies that will maximise returns.

‎ Asset management strategy

Despite lease expiry in December 2026, our focus is on working with KPN to explore longer term occupation requirements. Covid-19 is impacting sectors in different ways with demand for data centres increasing whilst the optimum long-term use of offices is being scrutinised.

Asset management strategy

• Core logistics investment located in Rumilly (Haute-Savoie) in the French Alps and one of the fastest growing regions of France
• Improving logistics location, driven by its proximity to Geneva (via A41 motorway and rail) and affordability with rents approximately a third of prime logistic rents in Geneva
• The asset comprises 16,700 sqm (97% warehouse, 3% office) with a favourable 1:740 sqm loading dock provision and sufficient truck manoeuvrability and parking spaces
• ESG initiatives undertaken include LED lighting upgrade, ongoing waste performance monitoring and automatic meter readings for energy and water
• Built-to-suit asset enjoying excellent tenancy history, fully let to Cereal Partners France (Nestlé subsidiary) for the past 24 years given its strategic location to the neighbouring Nestlé cereal manufacturing plant
• Scarcity of land in the region, meaning strong interest from occupiers and distributors which has spurred additional construction and rental growth
• Value has grown from an initial purchase price in Q3 2018 of €8.5 million to €9.8 million as at Q3 2023.

Asset management strategy

• Freehold 16,800 sqm DIY retail scheme comprising a DIY unit, a garden centre and a trade counter fully let to Hornbach
• Acquired in March 2016 for a purchase price of €24.3 million, latest valuation at Q3 2023 of €28.6 million
• Strong urban location 10 km south of Berlin City Centre in Mariendorf with surrounding medium density residential and above average population growth expected
• Large site area of over 4 hectares in a supply constrained location providing an opportunity to explore alternative use subject to ongoing discussions with the tenant and local authority
• Management recently inspected a neighbouring mixed-use residential/retail scheme. Longer term aspirations are to replicate
• Preliminary discussions with the municipality have commenced. However, timing will be dictated by our ability to get vacant possession