GCAP acquires and manages commercial properties outside London. The management team seeks to purchase relatively low risk assets, which provide a combination of sustainable income and the opportunity for capital growth from active asset management.
Target Lot Size and Yield
GCAP sees an opportunity at the smaller end of the market and targets properties with capital values between£5-20m
offering yields of between6-9%
"George Capital seeks strong residual asset value within the real estate it acquires by focusing on property fundamentals as well as attractive income returns. We continue to find good value outside London, buying above the auction buyers and below the larger funds."Ben Young
We favour well-located assets in the UK's major regions, focusing on mixed-use properties with both enduring occupational appeal and potential for alternative uses. The funds will also invest in out-of-town opportunities in strong locations.
GCAP's strategy is to find mispriced assets offering sustainable income plus capital growth, taking into account the following characteristics.
01 Supply and demand dynamics: Locations with low vacancy levels and wide occupier appeal
02 Underutilised properties with upside potential: Many occupiers only occupy part of a building, offering latent value opportunities for the landlord to exploit
03 Low density properties with planning potential: Planners are increasingly pro-development
04 Properties that lend themselves to higher value alternative uses: Secondary offices, for example, are typically worth more as residential accomodation
05 Smaller lot sizes - below £20m: We believe there is a gap in the market above the auction buyers and below most funds
06 Investing at a low base cost: A number of assets are mispriced due to under management and can be acquired at prices below their replacement cost