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Long Term Endowment.
We were selected by an established endowment to evaluate its property portfolio and bring vision, structure and transparency to the process of improving returns.
Since 2018, we’ve reduced the number of assets, selling ex-growth buildings, and introduced new sector exposure, with industrial now making up c.30% of the portfolio. We also put in place detailed business plans for each asset, from full development to lease restructuring.
Our partnership with the endowment was extended in 2023. Our key objective for the next five years is to focus on making ESG improvements, particularly by upgrading the residential portfolio to meet upcoming EPC targets.
Since we started advising the endowment, we’ve achieved significant milestones, including selling 45 assets at a 9% premium to valuation, increasing the industrial asset value by 32%, and increasing rental income by c.30%.
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Open-Ended Core Plus Mandate.
In 2014, an existing investor in our value-add fund approached us to build a diversified UK real estate portfolio with consistent distributions and a target to outperform the MSCI benchmark by 100bps.
From 2014 to 2022, the fund strategically invested in 13 assets, with a focus on industrial and retail warehousing, while maintaining an underweighted exposure to the high-street retail and office sectors. The fund adhered to specific guidelines that prevented investments in alternative sectors such as residential.
The client investment manager requested an orderly return of capital in 2020, following which the fund had delivered annual outperformance of its benchmark by 310 bps (net of fees).