Our investment approach is based on thorough and widespread fundamental research covering macroeconomic, property and capital market conditions in different countries and regions to identify markets that offer attractive investment opportunities.
Our starting point is to look closely at macroeconomic factors such as GDP and employment growth, as property returns are highly dependant on the economic performance of the target country and the region in which it is located.
This is followed by careful analysis of the property market fundamentals in the target countries. The areas we focus on include:
- Vacancy rates
- Rates of tenant turnover
- Rental trends and values
- Current supply verses development pipeline
- Population demographics
We then look at the trends in the different property capital markets, taking into account differences in local valuation practises. In particular we look at the attractiveness and sustainability of yields and how they compare to other markets.
Having identified an attractive market further analysis is undertaken to identify which segment of the property market offers the greatest potential for delivering sustained and secure returns for our investors. In addition thorough research is undertaken to establish the most appropriate structure for investment taking into account local regulation and taxation considerations.
Only then are acquisitions made which adhere to our longstanding and proven investment principles, which encompass value for money, market liquidity, security of cashflow and potential for capital growth.