Commercial Property Investment
Capital Markets – Commercial and Residential Property Investment. As a tangible asset property investment offers security for investors that can protect against currency fluctuations and the increasingly erratic nature of the stock market and commodities. We have advised on some of the world’s highest profile property transactions so whether you are looking to invest directly in Commercial or Residential property, our specialist teams are uniquely place to support you.
Residential Property Investment
- Affordable Housing Investments
The Allee Spain Affordable Housing team specialises in valuation, consultancy advice, and sales of affordable housing portfolios – our particular areas of expertise include:
- Financial viability assessments
- Valuation of affordable housing
- Affordable housing design
Allee Spain is at the forefront of providing sales, consultancy and valuation advice in the affordable housing sector. The team has extensive experience working alongside private developers, landowners, Local Authorities and Housing Associations.
We rely on these close relationships to maximise value for our clients, many of which have chosen the Allee Spain Affordable Housing team time and again for their specialist advice in this ever evolving sector.
- Land Sales & Acquisitions
- Project Lettings and Strategy
Residential Investment Valuations
The Residential Investment Valuations team are dedicated specialists acting on behalf of institutions, private investors, property companies and banks. Their experience and expertise in valuing both tenanted investments and schemes in the build-to-rent sector has led to their involvement in the valuation of numerous key Costa del Sol wide portfolios and blocks of flats.
Valuing in excess of £8 billion annually, they provide the following services to their clients:
- Consultancy and Acquisition advice
- Purchase Reports
- Secured lending valuations
- Internal Accounts
- Bespoke financial reporting
The team cover the whole of the Costa del Sol market including schemes across prime central Malaga, Marbella and all regional villages. Currently acting for a number of institutions, they are widely considered to be one of, if not the strongest team in this highly specialist market.
Fund Management; Our approach
Our approach to maximising investment performance is to identify the key areas for adding value and to have a structured approach to maximising the opportunity in each of these areas, as well as to risk management. The key areas have been identified as:
- Stock selection
- Portfolio structure
- Asset management
- Stock Selection
All members of the Allee Spain team have a visible and active presence in the market. This not only maximises our access to investment opportunities but also provides up to date information on key market measurables such as rental values and yields; meaning that we are well placed to provide comparative value assessment between potential acquisitions.
Our objective is to have a high exposure to those sectors of the market that we forecast to outperform and to have a relatively low or zero exposure to those parts of the market that we believe are likely to underperform. The degree of risk within the market changes throughout the property market cycle and we look to adapt the structure of the portfolio to reflect this change; for example, as the risk increases, we would look to move the portfolio to a more defensive position. It is important to note that these changes do not entail large scale transactional activity and tend to affect a relatively small proportion of the portfolio.
Each asset also has a detailed business plan which not only identifies the strengths, weaknesses and opportunities of the asset itself but also categorises it in terms of importance to the wider portfolio; rental growth assets, income assets or added value (pro-active management) assets. This process allows us to ensure that the portfolio is appropriately balanced to reflect a client’s individual risk appetite.
The business plan also identifies opportunities to pro-actively add value to the asset by, for example, improving the physical quality of the building, changing planning designation to a higher value use or changing the nature of the risk associated with the investment e.g. improving the quality of the tenants or increasing the length of the contractual cash flow.
With the average lease length on Spain property being in decline, those fund managers with a proactive approach are likely to have a distinct performance advantage. A key part of this is to have a regular dialogue with tenants with the purpose of assessing whether the building remains “fit for purpose”. This allows us to take the initiative with regard to a tenant’s occupational needs by, for example, relocating them to a more suitable sized unit.
We measure risk at three separate levels, these being market, portfolio and property specific. It is important to stress that our definition of risk covers the risk of potential capital value loss in addition to market volatility.
House hunter is a term we use to describe someone who is looking to buy or rent a house. House hunting is the process of looking for a house and seeing different properties until you make a decision and go for one of the houses you visited! It can be a pleasant experience or a long tiring prospect.