A very special thanks to Anulade Creations for providing the beautiful artwork featured on this page.
Asset Management
Acquisitions
We regularly source property investment opportunities for clients in residential and commercial property across the UK. The process starts by us understanding the risk and return expectations of each client allowing us to advise on suitable sectors and source suitable investments, often off-market, from our extensive contact list.
We provide a full investment appraisal and manage the acquisition process, including due diligence and other professionals.
Our service is especially useful to those seeking an entry into the UK market,either as first time investors or overseas investors without an existing UK presence.
Sales
We have recently sold over £5 million of property for clients at prices of up to 30% above valuation.
Achieving this requires a proactive and hands on approach.
We
inspect properties to ensure that each is properly presented for sale;
carry out initial due diligence to identify any possible issues with title;
ensure that the right agent is appointed and that they are appropriately incentivised;
conduct our own market review;
review bids and make recomendations based on price and deliverability; and
manage the professional teams to ensure that sales are completed on a timely basis.
Our involvement is a value added service and does not replace that of the investment sales agent, because of that we tend to work on an incentive fee basis which aligns us directly with our clients - we only get paid if sales proceeds exceed valuation.
Portfolio Management
We provide asset and property management for UK commercial real estate for selected clients who require more from a manager than a rental billing service and an annual building inspection.
We provide a service that puts occupiers at the heart of business. In our view happy customers are a vital part of preserving and enhancing capital values and rental income.
In our view, active asset management does not start with lettings, re-lettings and property improvements but instead with a proper understanding of the value a property to its existing and potential new occupiers.
By putting the occupier, as customer, at the heart of our strategy we improve tenant retention rates and occupier satisfaction which leads to lower vacancies and higher rents.
We therefore work almost exclusively with clients for whom real estate is a long-term investment, not short-term speculation.
Development Management
We undertake development management on small new build and conversion projects in both the residential and commercial sectors assisting clients in selecting an appropriate professional team and specifying the correct product for local market conditions.
On larger development projects we work closely with a number of carefully vetted development management partners, dependant on sector and geography.
Finance
Advisory and Management Services
We have experience of raising equity for real estate investments in both the public and private markets.
Our broad industry knowledge and contacts allow us to target specific investors by matching the risk / return appetite of specific investors with each investment raise.
Investor relations are an increasingly important part of any equity raising and our knowledge, gained from the management of investor relations for REIT's, public companies, private and institutional investors and joint venture partners allows us to ensure that appropriate reporting structures are in place to give investors confidence.
We keep abreast of the latest trends in management, performance and other fees, to ensure that management and investor interests are closely aligned.
EQUITY
Having raised over £5 billion in the securitisation markets between 200 and 2007 we are experts in the structured finance markets.
As well as securitisations, we have utilised fixed rates debt markets in the UK (debentures) and in the US (through private placements).
Fixed rate loans have become more of a feature of the market since 2010 however it is very important for borrowers to understand issues such as repayment flexibility and redemption penalties, as these can often have a significant impact on overall returns.
The attached pdf reproduces an article from The Treasurer magazine about the debenture restructuring led by Peter Clarke which won the Investment Grade Bond Category of The Treasurers Deal of the Year 2007.
LOAN CAPITAL
MARKETS
We have excellent contacts, built up over many years, with all of the major real estate lending banks in the UK.
If you are looking for finance for your investment or development properties then we should be able to help.
We advise our clients to ensure that you do not rely on a single source of finance but look to widen relationship whenever they can.
Our contacts and knowledge allow us to help clients to achieve that and get the best pricing available in the market.
BANKING
We advise clients on interest rate, fixed rate debt and foreign exchange derivative strategies.
Knowing how much to hedge, for how long on with what instruments, requires an in depth understanding of both financing and real estate strategies and an ability to assess the balance between cost, length of term and flexibility.
Having developed and agreed a strategy, we then work closely with chosen partners to ensure that execution of any trades are achieved on best market terms.
DERIVATIVES
Negotiation with borrowers or lenders requires a detailed understanding of asset specific issues strong property and asset management skills an intuitive grasp of the value drivers for real estate investors.
Syndicated loans bring increased difficulties the ability to ‘shape’ the opinions of a group of lenders is vital as the lowest common denominator result will not be optimal.
Recept has an excellent track record of managing these types of negotiation, and finding innovative solutions to extricate both borrowers and lenders from untenable legacy positions.
DEBT
RESTRUCTURING
Lending behaviours have changed however many lenders still do not have a clearly defined real estate lending strategy.
That strategy should be a result of a detailed review of markets, income at risk and prospects for default. Different sectors and geographies have very different prospects.
We help lenders to develop strategies and to improve due diligence and reporting procedures. Formal management due diligence is often still missing, and is very important.
We have access to proprietary risk modelling tools and the latest generation software can accurately analyse portfolio risk.
LENDER ADVISORY
LENDING STRATEGY
Robust systems of risk management and review are vital to monitoring lending real estate led, for example arrears, defaults, renewal rates, vacancies able to be interrogated in real time
able to aggregate exposures across multiple connections.
Without such systems ‘early warning’ signals are often missed
they have been market standard in public bond markets for some time most lenders are looking to upgrade management information systems.
We are experts at designing risk management systems of this kind.