News
2011 - The Year Ahead
January 4, 2011
Every new year provides an ideal opportunity to strategically review your business and assess the opportunities that lie ahead.
Within GB’s existing portfolio,we will continue to make selective disposals.This allows us to ensure the ongoing profitability of the company,repatriate equity for reinvestment into new ventures and reduce bank debt.We will target individual units normally at a natural break in the tenancy cycle and should you believe you could assist us in this regard or be interested in any of the portfolio yourself,please do not hesitate to contact us.
In addition we will continue the progress made over the last 12 months in increasing the rental income derived from the portfolio whilst ensuring continuity of tenure as much as possible.We will continue to provide a seamless rental service with a fast and effective management system and look to maintain our average void period across the portfolio of 5 days.
With the solid base set out above and reputation and track record enhanced,we are keen to move forward with new projects.The well documented issues that have faced the new build property market in central London and experience gained over this period means that whilst the fundamentals and key activities of our business remain exactly the same,our purchasing methodology has been slightly modified.GB is now actively looking for opportunities broadly within the following parameters
1/ To purchase small numbers of units (5 or less) within large central London schemes marketed off plan at a very early stage.We would expect completion to be in the region of 24 months thereafter and to be buying in the first release of units.GB will exchange on these properties in the normal way and on completion they will be retained within our rental portfolio.
2/ To enter into joint venture agreements with established developers on central London schemes of ideally between 10 and 40 units.GB would participate with equity and contractually guarantee completions on all units at an agreed rate per Sq Ft.GB will look to form part of the developing entity with an appropriate profit share and control of the sales and marketing campaigns.
3/ To enter into joint venture agreements with established developers on central London land opportunities.GB’s role could be multi facetted in these instances and will very much depend upon the site in question,the numbers of units involved and relevant skill sets within the companies.
4/ To purchase build complete units where there may be some difficulties and therefore value.
Our ideal exit values would lie in the region of £500 and £1000 per sqft and locations of interest include - Victoria,Pimlico,Marylebone,Soho,Covent Garden,Midtown,The City,Islington,Canary Wharf,Greenwich,Bermondsey,Southwark,Nine Elms and Battersea.
Please do not hesitate to contact Simon Grace to discuss any aspect of our business.