Our value-driven investment philosophy is underpinned by 9 key principles:
- While we always aim to deliver amiable rates of return, our primary concern is to protect the capital we invest.
- Our minimum target internal rate of return (IRR) is 15%. To date, we are proud to have achieved an average of over 18% over our entire portfolio.
- We seek out suitably-sized properties that can benefit from the previous experience, knowledge, and capital we provide.
- We only pursue investments if they meet all our criteria. We only begin a project if we can do it the right way and for the right reasons.
- Frequently we are contrarian investors in both the short and long term. Given our 50+ years of market experience, we have obtained a strong grasp of the risks inherent to property investment. Our risk analysis and mitigation efforts ensure that we always enter into investments with more than one exit route identified at the outset. We seek to invest in properties with maximum flexibility and choice regarding how the final building will be utilised.
- We invest in areas where we see improving demographics and also in retail residents who would add value to our portfolio, even if they are early stage businesses.
- We understand that real estate is a capital-intensive asset and so, to protect our portfolio, we buy the right property according to strict criteria at the most cost-effective price, develop our acquisition in-line with our aspirations, and, finally, hold the stabilised asset.
- We favour retail-residential, mixed-use investments because we understand the risks and location parameters for retailers. We like the additional value-added benefits of residential units being combined with retail units seeing as such investments provide us with stabilised and diversified revenue streams.
- We actively manage our real estate portfolio, via our LuxuryDigs.co.uk brand. This helps to ensure a consistent quality of service and reputation across our entire property portfolio.
As a result of the thought that goes into our projects, our commercial and residential occupier residents tend to stay with us for much longer periods than the market average which helps reduce void periods and so boosts our IRR.