The Company’s investment policy is summarised below*:

  • To invest in a diverse portfolio of UK commercial real estate, principally characterised by individual property values of less than £10m at acquisition.
  • The property portfolio should be diversified by sector, location, tenant and lease term, with a maximum weighting to any one property sector or geographic region of 50%.
  • To focus on areas with high residual values, strong local economies and an imbalance between supply and demand, acquiring modern buildings or those considered fit for purpose by occupiers.
  • No one tenant or property should account for more than 10% of the rent roll at the time of purchase, except for:
    (i) governmental bodies or departments; or
    (ii) single tenants rated by Dun & Bradstreet as having a credit risk score higher than two 17, where exposure may not exceed 5% of the rent roll.
  • The Company will not undertake speculative development except for the refurbishment of existing holdings, but may invest in forward funding agreements where the Company may acquire pre-let development land and construct investment property with the intention of owning the completed development.
  • The Company may use gearing provided that the maximum LTV shall not exceed 35%, with a medium-term net gearing target of 25% LTV.

* A full version of the Company’s Investment Policy is available at here.