Many institutions have stepped back from regional offices. That has left good buildings, with tenants in place, priced at yields that would have been unthinkable a few years ago. Since 2023 our network has invested alongside Seneca Property in Preston, Maidenhead, Guildford, Bristol and Woking.
The case
Purchase yields of around 11 to 12.5 per cent on recent deals
An initial cash yield on equity of around 10 per cent
A target net IRR above 20 per cent over three years
How deals are chosen
Town centre locations with good transport
Several tenants, so no single departure decides the outcome
Good energy ratings, or a clear path to them
Space that can be re let or improved by active management
The risks
Vacancy, the cost of keeping buildings up to standard, and finance costs are the main risks. Buying well, with income in place and conservative borrowing, is the protection.
The record so far
The first exit, the Premier Inn in Preston, bought for £7m and sold to Epsicap REIM for £9.75m.
Past performance is not a guide to future returns.
To hear about future co investments, call James Innes on 020 7850 4760 or email james.innes@chrystalcapital.com.
This article is general information and is not advice.