The role of the asset manager is the alignment of the combination of property skills alongside investor equity to deliver the business plan.
In the majority of cases the business plan would have a life of between 3-5 years and assets would be profiled according to risk.
We evaluate both unlevered and levered IRR returns & these are considered in a matrix of variables allowing for both rental growth and rental diminution coupled with yield contraction or expansion.
In recent experiences we are looking to achieve a levered IRR of 15% based on 55% debt with the downside case showing 12%.
The effect of our asset management hedges the risk of an unforeseen falling market whilst producing 20% + IRRs in a normalised marketplace.
The process involves extensive due diligence into:
- asset class
- new supply
- annual take-up
- average annual take-up
- average exit yields for the asset class over the last 10 years