Delivering strong deals

For over 25 years in the UK property market we have built up a reputation of deliverying on deals of all shapes and size.  With our extensive agency contacts and bespoke deals management system, we receive and are able to monitor and select deals to suit our investment strategy.

We only accept “RPI Property” deals into our database and through out 2016, £163million of deals were accepted.

Our objective is to achieve annual uplifts of rent on an indexed basis.  This is our GOLD STANDARD and we mark any leases subject to annual reviews as Gold.

The deals introduced to us in 2016 are set out as :

 

2016 Deals by Property Use

£ Million

Industrial

Residential

Hotel

Retail

Medical

Retail Warehouse

Leisure

Office

Office/Retail

2016 Deals, by Use

Deals Per Region

  • West Midlands
  • South West
  • South East
  • Scotland
  • North West
  • North East
  • London
  • East England
  • East Midlands

All deals monitor the rent review frequency and the tenant credit rating as determined by Experian.  This allow a cross section of deals to be selected for detailed analysis to fit precisely our parameters in terms of lease length and credit risk.

In addition, we monitor the region of each deal to allow a geographical spread of risk in the investments considered.

2016 Deals allocated by rent review pattern & Experian credit rating

The table shows deals allocated over their rent review patterns and ranked by their credit rating.  Gold represents annual uplifts and are the ideal type of review.  Blue, Green, Orange, Red and Yellow represent each of the years in a 5 yearly pattern.  An even spread over these categories would give the equivalent to annual uplifts.  We can see that our database lacks deals with a sufficiently acceptable credit rating in the Red review pattern (2017, 2022, 2027 and so on).

Tartan represents unusual uplifts or patterns. There are no tartan reviews this year.

Experian ratings from Government (1) to Below Average (4) are all acceptable levels of risk.

Using the above 3 charts, along with our market knowledge, we can commence our deal selection and due diligence.  Potentially, the chart suggests in excess of £145million of deals available, providing with an acceptable level of lot size, credit risk and an even spread of reviews.