With high loan to value ratios forcing ‘fire sales’ and schemes in the hands of administrators, there are many quality assets currently available for investment. But with high vacancy rates and a struggling occupier market, do potential acquisition opportunities represent good value? What is required to unlock asset potential? And how do you turn strategic ambitions into value growth?
FSP has guided investors through the best and the worst of property markets for over 30 years. FSP advises 17 of the top 30 UK retail portfolios, including Legal & General, Aviva, Hermes and PruPIM and has recently played an active role in appraising acquisition/investment opportunities for Area Property Partners, F&C Reit, Praxis Holdings, PruPIM and Deutsche Bank. Specific sites include Land of the Prince Bishops Shopping Centre (Durham), Trinity Shopping Centre (Wakefield), Shopping City (Salford), Clacton Factory Outlet and The Junction portfolio (comprising 11 retail parks).
It is often said that ‘retail is detail’. As former senior retail managers, FSP:
- probes corporate accounts for key indicators of financial well being
- conducts shop by shop audits to quantify trading risk and rental sustainability
- analyses retail provision to identify opportunities to grow shopper value
- works alongside asset managers to create effective leasing strategies
- ensures that the trading benefits are correctly presented to target occupiers
Through careful assessment and the application of FSP’s expert retail knowledge, it is possible to separate the most successful investments opportunities from the under performers and to turn average assets into stars. FSP’s consultancy advice therefore starts with investment strategy and pre –acquisition assessment and extends through asset strategy to leasing support. FSP’s advice is at its most effective when closely integrated with the work of investors and asset managers. With a pragmatic risk management focus, such strategies will optimise prospects for growth and allow investments to out-perform benchmarks.
“ Aviva investors have successfully worked with FSP for some time. We see research as being a key component of active asset management and FSP provide Aviva Investors with a first class, comprehensive service which is tailored to suit our specific requirements.”
Chris Paterson
Property Fund Manager
Aviva Investors