Investment Strategy

Eskmuir has a clear investment strategy which seeks to mitigate risk at a portfolio and property level by targeting:

Total returns

Attractive total returns are delivered through an income focussed approach to asset management which serves to grow income streams and in turn capital values. Investing principally in multi-let properties supports this strategy as valuations typically incorporate the contractual lease position, reflecting a loss of income at tenant break options and lease expiries. In practice 85% of break options are not exercised and 80% of tenants renew their lease, thereby generating additional income and value.

Asset Size

Individual asset in the £3m-£20m strata of the market which are often too small for institutional investors and too large for high-net-worth investors enabling acquisitions at attractive income yields.

Environmental credentials

Eskmuir takes its role as a global citizen seriously and actively invests in improving the energy efficiency and environmental performance of its assets under management, reflecting both its responsibility to improve the built environment as a means of delivering wider environmental gain and to deliver a product in line with occupier and investor requirements.

Strong Locations

Acquiring assets in locations which enable tenants to optimise their business activities helps to keep vacancy rates low, mitigate void costs and improve income returns.

Asset management potential

Each property has its own bespoke five year asset plan which identifies potential to enhance rental income and capital values. A hands on approach, building on good working relationships with occupiers and professional advisers, is a critical part of delivering successful outcomes. The active asset management of multi-let assets enables the income levels to be maintained and grown as the impact of specific lease events is smoothed across a broad occupier base, mitigating the higher levels of void risk which can be associated with single let assets.