COMMERCIAL & RESIDENTIAL
PROPERTY INVESTMENT
PROCESS
Whilst we are always happy and willing to support our clients with their investments in residential properties, our core expertise lies in the sourcing and structuring of Commercial Real Estate Transactions across the Office, Retail and Warehouse sector.
One of the key reasons why many choose to invest in the UK market is due to the long term stability and transparency the investment offers. However, that is not to say that timing and thorough due diligence is not essential to such a deal.
Sourcing
Finding the right deals at the right price
Structuring
Getting every aspect of the deal right from the onset
Purchasing
Managing the thorough yet seamless process
Managing
Getting you the best yield and growth out of your investment
Investment Process
Regardless of Deal Size, we always ensure we follow our strict and thorough investment process:
RESEARCh
This aspect of the Investment Process in our opinion is the most important to ensuring the success of the deal. There is no shortage of deals on the market – the shortage is of good deals. Our research team ensures that we do our homework so that you don’t have to look at the bad deals at your time and expense.
We have our own in-house experts as well as using a number of external specialists who constantly track the market and fundamentals which anticipate property prices and ultimately give you the return that you seek from your Investment.
Changing tax regulations, regulatory requirements and tenancy legislations means that you need a partner that stays on top of all this for you so that your investment continues to remain best in class for its tenure with you and more importantly at time of exit.
STOCK SELECTION
At least 3 deals pass our desk every week, yet we only do about a dozen transactions a year. It’s not to say the other deals don’t get done – they do – but we make sure our clients only see the absolute best deals in the market. We understand that is exactly why you choose to work with us.
Other than your needs as an investor, so much needs to be considered when analysing a deal – market conditions, local geographic dynamics, changing regulations, physical condition of the asset, quality of tenant and so on. Our job is to scrutinise every deal that lands on our desk to ensure that we are prepared to put our name to it. Until we don’t believe that we would be prepared to put our money on the deal, we don’t bring it to you.
Every deal has to pass our strict test of long term capital and income growth before we decide to share it with you.
PROPERTY MANAGEMENT
For many of the others, the deal ends with the completion of the purchase transaction. Not for us. Most of our clients tend to choose to continue with us to manage and dispose of their asset.
Real Estate like every other asset class needs to be continually appraised to ensure its meeting its investment objectives and working well in the overall portfolio of the investor. Rent collection, re-negotiation of leases, new tenants, facility maintenance and much more falls within our Property Management remit. And, when it is time to exit the investment, once again we are there to manage the process for you whether to a third party sale or to one of our existing customers.
Our goal with this service is simple – zero stress to our investor with maximum return on their investment. A simple KPI to track and one that all our customers confirm we excel at.
Types of Deals
There are 5 types of deals that we undertake on behalf of our clients at Adivo Property Investments subject to their investment strategy and goals:
One
Investor approaches us with their requirements for commercial real estate. Adivo goes to market and finds the right deal for the investor and presents to them for consideration.
Two
A deal is brought to us and we consider it to be a good investment opportunity and present to our existing client base for consideration
Three
Client requests a land purchase to build new homes and flats. Houses/flats are subsequently developed on this land by Adivo Homes and are either sold or let.
Four
Client requests an unmodernised residential investment for Adivo Homes to refurbish and then subsequently let or sell.
Five
Client requests a purpose-built family home for holiday use which is managed by Adivo Homes in their absence, used by the family in the holidays and subsequently sold in the future when the gains justify a sale.
Additional Information
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Real Estate transactions yield the best returns when leveraged to the right levels. A 5.5% yield on a full cash purchase is very quickly in excess of 7.5% when leveraged 50% value. This facility allows not only for a higher yield but also an opportunity for either a larger investment or cashflow to fund two separate transactions.
We understand the value of this type of funding and extend full support to our clients to arrange the financing. Our clients are mostly international and at times can arrange the financing through their own local banking relationships but more than often many clients turn to us for assistance to arrange the financing through the banks which Adivo has close partnerships and working relationships with.
Whether it is a regular interest based mortgage or a Shariah complaint structure that you seek, Adivo and its Partners are always willing to work with you to understand your circumstances and requirements and extend whatever support is required to secure the financing.
Regardless of the returns one can make on an investment, in our experience it never feels right until and unless it is guided by and aligned with the values we wish to live by. We are strong believers of this at Adivo and take as much care to understand and respect your values as we do our own.
Religious, social, environmental or corporate governance are all as equally important to us and we always ensure that we understand what matters to our clients before we recommend any investments to them.
Similarly, we have our own values and try to live by them when doing business with our clients.
We AVOID acquiring properties where:
- Environmental issues have occurred or are likely to do as a result of the tenants activities.
- Tenant activities can seem anti-social which may require government or local authority intervention at some stage.
- The level of transparency in the transaction is not to our satisfaction.
Equally, we are more ENCOURAGED by investments that:
- Are deemed to be in the social interest such as hospitals, safe student accommodation or higher standard care homes.
- Meet or exceed outstanding energy efficiency certification.
- Have in place tenants of a high quality with whom we believe we can maintain a close and strong level of communication.
And when we do our deals, it is IMPORTANT to us that:
- All involved in the transaction are aligned with the investors objectives and are remunerated wherever possible on performance.
- Where and when our investors feel that we should be co-investors in a deal then we do our level best to do so.
- Partnership agreements are in place to avoid any misunderstandings or confusion.
Many clients after 5-7 years of ownership look to exit the investment by selling the asset, others look to re-negotiate more favourable terms on their lease based on market environment, some look to invest in their asset through refurbishment and improve on their overall yield by raising rents. Regardless of what you decide to do, Adivo is fully equipped and staffed to help you with all the above and more.
Many of our clients will tell you that when signing up to a deal there will be many who are willing to support you but it can be lonely at times of exiting a deal. This is certainly not the experience our clients have had with us and you will find us just as enthusiastic and engaged when exiting a transaction as we are when entering one.