Most HMO portfolios are sold through agents who are excellent at single houses. A portfolio sale to institutional capital needs something different. These are the questions worth asking any adviser.
Do they know the buyers?
The buyers of student and HMO portfolios are a small group of institutions, operators and family offices. Your adviser should know who is active now, what each one wants and what each one pays for.
Can they advise on structure as well as price?
Whether to sell the company or the properties, whether to sell whole or in parts, and how the tax falls on each, often matter more than the headline figure.
Are they on your side only?
Ask how they are paid and by whom. An adviser paid by the buyer, or hoping to manage the portfolio afterwards, has a different interest from yours.
Can they offer more than a sale?
Sometimes the best answer is a partner, a refinancing or a partial sale. An adviser who can act as adviser, joint venture partner or investor can put all of those on the table.
Will they keep it discreet?
Tenants, staff and lenders should hear about a sale when you choose, not from the market.
We advised Condor Properties on the sale of 997 beds to Brookfield and Student Homes Management. For a free, informal valuation, call James Innes on 020 7850 4760 or email james.innes@chrystalcapital.com.
This article is general information and is not advice.