Property Requirements:
Yes please:
- Educational sectors, schools, nurseries and after school centers
- Commercial D1 use buildings.
- Ideal lot size £0.5 million - £10 million
- Preferably mixed, retail or office usage building potential to change to D1 use.
- Fundamentally "good real estate"
- Strong focus on income and resilience of cashflow
- Added value business plan
- Price below replacement cost
- Limited void and leasing risk
- Initial yield: 8%++
- Properties suffering from management neglect
- We like ugly buildings with high returns!
- Joint ventures (with partners, developers and asset managers who can add value)
- Single let properties
Education Sectors:
- A preparatory school
- A secondary school
- A nursery
- A tutorial college
- An international college
- A special school
- After School Clubs
- A group of schools or nurseries
- Premises suitable for educational use
- Or any other kind of educational business (supply, software, compliance, performance assessment)
Distressed Investment Opportunities in Education Sector:
- Lack of business continuity as a result of breaching bank covenants.
- Sound business potential, but current cash flow issues due to credit crunch environment.
- Business neglect due to financial and social factors.
- In ability to manage the business in the current turmoil environment.
- Business suffering from higher fixed rate interests and commitment into Swap contracts.
No thanks:
- Speculative development funding
- Over-rented income
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