We unlock potential, creating sustainable space for London to thrive. In order to unlock potential, we apply our specialist skills to reposition properties to produce high quality, sustainable spaces, with high levels of service that our customers demand.
Our strategy is underpinned by a set of clear principles
- 100% central London
- Reposition properties
- Match risk to cycle
- Low financial leverage
- Disciplined capital management
- Sustainability: an imperative
- Customer First
Applying our specialist skills to reposition properties
In order to unlock potential, we apply our specialist skills to reposition properties to produce high quality, sustainable spaces that our customers demand. Our disciplined approach to allocating capital shapes our activities, ensuring we operate in tune with London’s cyclical property markets to maximise returns.
Acquire
- Disciplined capital allocation approach; must be accretive to existing portfolio.
- Tired, inefficient properties, often with poor EPC ratings, with angles to exploit.
- Attractive central London locations supported by infrastructure
improvements/local investment. - Discount to replacement cost and typically off-market.
- Off low rents and low capital values per sq ft.
- Optionality: flexible business plans.
- Opportunity to enhance sustainability credentials and grow our Flex portfolio.
- Ability to deliver profit on cost on development schemes of 12.5%-20.0% and an ungeared IRR of 10.0%-15.0%.
Reposition
- Through lease restructuring, the delivery of flexible space, refurbishment or redevelopment.
- Deliver high quality sustainable spaces into supportive markets that meet and exceed customer needs.
- Manage risk through pre-letting, joint ventures and forward sales.
- Deliver climate-resilient buildings that integrate market-leading sustainability standards, flexibility, amenity, wellbeing and technological innovation.
- Enhance the local environment and public realm.
- Deliver a lasting positive social impact in our communities.
Manage
- Deliver a ‘Customer First’ approach, providing efficient, resilient, healthy and innovative space to meet the demands of modern customers.
- Provide a greater choice of spaces to appeal to a variety of customer needs, whether on a Ready to Fit, Fitted or Fully Managed basis.
- Constantly evolving to lead emerging trends, including the use of technology to enhance the customer experience.
- Detailed business plan for every property reviewed quarterly to maximise total returns over our cost of capital.
- Strong sustainability credentials to maximise customer appeal, enhance the long-term property value and reduce obsolescence.
Recycle
- Disciplined capital recycling through the sale of properties where we have executed our business plans, projected returns are insufficient
or where we are able to monetise our expected future profits. - Create a legacy of high quality, sustainable buildings to benefit London and the communities in which they are located.
- Reinvest proceeds into higher return opportunities.
- Return excess equity capital to shareholders when reinvestment opportunities are limited.
Underpinned by key resources and relationships
Our stakeholder relationships
- Intense, supportive, customer-focused approach to understand customers’ needs. Utilising regular customer feedback to create bespoke action plans.
- Strong levels of customer satisfaction.
- Open relationship with debt and equity providers based on clear investment case and transparent disclosure.
- Deep relationships with key suppliers (including contractors) and joint venture partners.
- Positive engagement with local communities, local authorities and planning departments.
Our portfolio and sustainability
- 100% central London, in attractive locations well served by local infrastructure with enduring customer demand.
- Located in markets with high barriers to entry playing to our strengths.
- Continual repositioning of buildings to enhance the customer experience, improve sustainability performance, futureproof value and enhance the environment in which they are located.
- Measures to improve the climate resilience of our buildings integrated within the design of our spaces.
- Positioned for future growth; 24% of portfolio in our HQ development or Flex refurbishment programme. Potential c.£0.5 billion commitment across seven on-site HQ development and Flex conversion schemes.
Our people and culture
- Experienced management team supported by specialist in-house Portfolio Management, Customer Experience, Development, Investment, Leasing and Finance teams and support functions.
- Entrepreneurial, collegiate and inclusive culture based on strong values with disciplined approach to risk management.
- Reward linked to purpose, strategy and values with close alignment with stakeholders to deliver value and outperformance.
- Effective governance structure.
- Positive employee engagement.
Our capital strength
- Consistently strong balance sheet and conservative financial leverage.
- Low cost, diversified debt facilities and plentiful liquidity.
- Evolving debt book to align with our values via ESG-linked financing.
- Sustainable Finance Framework in place.
- Disciplined allocation of capital through analytical, risk adjusted IRR decision making.
- Support low and progressive dividend policy.
- Tax efficient REIT structure.