Investment objective

We invest in UK real estate assets to achieve our objective of providing
shareholders with an attractive level of income and the potential for capital and
income growth.

Investment policy

We achieve our investment objective by investing in a diversified portfolio of UK
commercial properties.

We invest principally in three commercial property sectors: office, retail (including
retail warehouses) and industrial, without regard to a property
relative return benchmark.

Investment strategy

We target ‘core’ and ‘core-plus’ assets with lot sizes ranging from £10 million to £50 million and a net yield over the holding period of more than 6.5%.

We acquire assets that offer opportunities to add value through our intensive and entrepreneurial approach to asset management. These are often are non-institutional assets that we will transform into institutional-grade.

How we generate shareholder value

Intensive and entrepreneurial asset management
Our team aims to deliver value through a unique and focused style of managing
assets, which we believe delivers superior returns. We have a resource-driven
platform to identify opportunities to add value within each asset.

Often, several members of our team work together to set and execute the business plan, drawing on their different skill sets. To ensure we focus on exploiting the asset management opportunities, we generally adopt a ratio of three to five assets per surveyor.

Industry expertise
Our team has an extensive network of market-facing contacts and a high level of
well-informed, market-aware expertise. This enables us to identify assets that will
deliver attractive returns.

Disciplined approach
We select our investments based on a thorough assessment of the opportunities.
Our aim in this is to find properties that either are mispriced or offer the potential
to add value through active asset management. We always appraise cash flow
before bricks and mortar.

Diverse portfolio
Our investment risk is spread across a variety of assets with a diverse range of
tenants, lease lengths and covenant strengths, as well as geographical areas and
sectors. Although we invest in the principal commercial property sectors, we do
not diversify for diversification’s sake. Instead, we always focus on asset

For more on the Company’s investment policy and investment restrictions
please see the Company Prospectus

What makes us different?

Targeted investing
Our investment policy is not benchmark-driven. We seek to identify assets that
are mispriced, through a detailed analysis of risk and the property fundamentals,
combined with our in-depth knowledge of the local occupational market
We look to acquire assets that we can improve to institutional-grade property.

The investment policy is not rigidly benchmarked against a traditional property
index. Rather than pursuing benchmark-relative performance, we believe that it is
more important to create a sustainable diversified portfolio in which each asset
can ultimately offer strong and potentially improving cash flow.

We aim to achieve our investment strategy by targeting ‘core-plus’ properties
with a net yield, during the hold period, in excess of 6.5%.

Unlocking value
The ability to unlock value is key to delivering superior returns. We have a well-
resourced investment manager who seeks to identify value-adding opportunities
for each asset.

We have a generous ratio of property to surveyor, which ensures that all asset  management initiatives can be identified and properly followed through to
execution. Generally, three to five projects are allocated to each surveyor, but
given the diverse skillset of the team, it is usual to have more than the one
member of the team involved on a project.

This ensures we know how the assets ‘live and breathe’, how they fit into the
location and economic environment and what opportunities and risks exist
beyond general market movements. It is then all about assessing the quality of,
and risks to, the cash flow. In our opinion, successful property investment is about
cash flow first and bricks and mortar second.

Experienced and well advised
Our investment manager has a wealth of experience in the real estate sector. The senior directors have significant institutional fund management experience, and the rest of the team have strong property company and developer experience covering all sectors of the UK market.

The entire team has a strong track record of improving the value of our assets through intensive and entrepreneurial asset management.