+44 207 0431 628 info@sisuadvisors.co.uk

Target Returns*

  • Target average gross rental yield 8%
  • Financing for 50-60% of purchase price. Interest rates from 3% to 6% for asset-by-asset non-recourse financing dependant on the property and location.
  • Gap between financing rates and yields enables attractive net rental yields. Targeting 7-11% annual cash flow and 11-15% net rental yield.
  • Annual returns of 20%+ likely if economy keeps improving pushing cap rates lower and rents higher.
  • Even without cyclical economic recovery, attractive returns are achieved from rent alone.

*Target returns are not indicative or actual or future returns

Small Ticket Size

  • Target ticket size of £1-10m
  • Substantial illiquidity premium and limited competition

Top 10 Cities

  • Target location mid-to-large-sized regional cities. Long term viability of the location not in question
  • Top 10 cities: Birmingham, Bristol, Leeds, Liverpool, Manchester, Cardiff, Sheffield, Newcastle, Edinburgh and Glasgow

Grade A or B Buildings

  • Target buildings are typically 5-15 years in age with desirable exterior, modern open plan interior, raised floor & suspended ceiling
  • Buildings this age are not expected to require any substantial capital expenditure for another 10 years and are attractive to tenants
CBD or Fringe City Centre

  • Central Business District opportunities attractive in smaller towns
  • Fringe city centre opportunities in large cities still attractive. Grade A CBD offices are becoming expensive in larger cities

Short to Medium Term

  • Substantial value increases are currently possible when tenancies are renewed or new tenants are found
  • Targeting an average of 4-6 years to first break or lease expiry
  • Asset management focused on lease renewal and break removal negotiations

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