Onside Issue 6 - 9


What are the potential returns for
such a deal?
We look for a mixture of strong income distribution
as well as the potential for significant capital
growth. The Serviced Office investment offers a
target income distribution of 7.15% per annum
which is paid for by the healthy cash surplus the
business produces. In addition, we are driving
value by increasing occupancy and rental rates,
as well as making targeted capital investment into
the centres, and as such we expect to be able to
deliver a substantial capital profit at the end of our
four year business plan. I believe there are good
risk adjusted returns available using our approach
because at the core we always buy well, seek sound
fundamentals and with our asset management
skills we expect to deliver value.

How do you see the UK property
market changing over the next 12
For a long time the UK economy has been
characterised by extremely low interest rates. This
has had the dual effect of making the yields offered
by property investments relatively more attractive,
whilst also facilitating debt at cheaper rates.
This has led to heightened demand for property
investments with a corresponding increase in the
valuations commanded in the market, particularly
for those investments considered 'institutionally
acceptable' such as large logistics or 'alternative'
such as PRS (Private Rental Sector) schemes.
There are always some unpredictable factors
which it is hard to forecast. For example we
certainly saw a short period of pricing volatility
in the immediate aftermath of the Brexit vote.
These, for the experienced investor and manager
such as us, signify potential buying opportunities
that we will explore quickly and ideally execute
on. The potential for political upheaval aside, the

market has been relatively stable and given that
interest rates are expected to remain low for
the foreseeable future I am not anticipating any
imminent major changes. The performance of the
stock market is also fundamental to our outlook as
UK Institutional buyers with vast weight of money
issues have a distinct correlation between the
stock market and the equity they have available to
invest in property. This has both advantages and
disadvantages, which we will seek to capitalise on
because we can move quickly and efficiently.

And what about Seneca Property
- what lies ahead for the next 12
We've had a busy first six months and have closed
transactions worth in excess of £30 million during
this period. We have a busy pipeline of deals and
expect to be closing close to £20 million of deals
in the first quarter of 2018. Beyond that, we will
continue to be active in the market and to look to
source exceptional investment opportunities. I am
targeting a portfolio in the region of £100 million
by the end of 2018. Of course, it is not only about
adding to the portfolio, as a lot of our time is actually
spent managing existing assets, investing in our
properties and improving financials. We definitely
have exciting strategic plans to grow our Serviced
Office business and we will undoubtedly be
launching some interesting initiatives throughout
the rest of 2018 as we look to continue our growth.
It will certainly be a busy year and both Chris and
I are looking forward to the journey and delivering
on the investment performance.


Table of Contents for the Digital Edition of Onside Issue 6

Onside Issue 6 - Cover1
Onside Issue 6 - Cover2
Onside Issue 6 - Contents
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Onside Issue 6 - Cover3
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