Investment Approach
The Company's objective is to provide shareholders with an attractive level of income together with the prospect of long-term capital growth. The Company seeks to achieve its objective by assembling and maintaining investments in a diverse portfolio of German commercial property assets.
Predominantly Western Germany, with a primary focus on office, industrial / logistics and retail.
Except in special circumstances residential property will not be acquired / held.
The current target portfolio composition by property type is office circa 50 per cent, retail circa 25 per cent and industrial/logistics circa 25 per cent.
Sites for development and vacant buildings for redevelopment/refurbishment may be purchased for development/ redevelopment/refurbishment only in exceptional circumstances and provided that the aggregate exposure to speculative development risk does not exceed 7.5 per cent of gross funds invested at any one time and that any construction risk is taken by a reputable 3rd party.
Assets held through separate special purpose vehicles ("SPVs"), which are intended to utilise gearing with a view to generating enhanced returns.
The Company will generally seek to acquire assets with the following characteristics:
- Good quality tenants with strong covenants
- Potential for rental growth through indexation
- Good level of maintenance requiring minimal refurbishment
- Good Location
- Secure income flow