Progress against targets

Last years strategic priorities
A fundamental aspect of our business model is the successful reading of the property cycle. Following significant declines in real estate capital values over the last two years, with our low debt levels as a result of our actions and the Rights Issue in June 2009 we have been able to exploit this market opportunity. We have delivered on our investment, asset management and development targets during 2009 and, today, look to the future from a position of strength.

Profitable investments

Specific target

  • Invest the net proceeds of the 2009 Rights Issue (£166 million) by the end of 2010 in profitable acquisition opportunities

Achievement

  • Investments and commitments of £161 million by 31 December 2009

How did we do it?

  • Intimate market knowledge enabling high quality deal sourcing
  • Close network of contacts and advisors
  • Timely execution
  • Use of joint venture vehicles
  • Creative structuring providing solutions to financially stretched owners

Historical acquisition profile graph

Acquisitions case study  arrow-right

Marcol House case study  arrow-right

 

Maintain high occupancy

Specific target

  • Reduce investment portfolio void rate from 31 March 2009

Achievement

  • Void rate fell from 7.8% to 3.4% during financial year

How did we do it?

  • 87% retention/reletting rate for leases with expiries or breaks
  • 144 new leases completed generating £11.2 million p.a. (our share) of new rent
  • Offer good value for money in excellent locations
  • Regular meetings with tenants to understand their objectives
Investment portfolio occupancy graph

Maintaining high occupancy case study  arrow-right

Minimal development

Specific target

  • Minimise development exposure during the downturn in occupational demand and fall in rental values

Achievement

  • Only £2.7 million spend in development capex during 2009/10
  • 47,000 sq ft Woolyard scheme completed in July 2009

How did we do it?

  • Early recognition of the downturn
  • Aligning development programme to the cycle
  • No ongoing schemes and new development starts during the year
  • In early 2008, three major schemes deferred pending market recovery
Development capital expenditure graph

Creating new space at Woolyard case study  arrow-right