CEG has a successful twenty year track record of sourcing, buying, managing and selling core and non-core, UK commercial property across all the main sectors. The group is entrepreneurial and is particularly suited to complex and innovative projects involving a high level of risk. Central to the group’s success is its consistent investment philosophy which focuses on;
Stock selection – sourcing opportunities that, through poor
management and lack of capital, have been mispriced by the wider investment
community. Assets that in terms of their location, configuration,
accessibility and general bricks and mortar, are fundamentally
sound but suffering from high vacancy, obsolescence and a poor tenant profile.
Bottom-up pricing – strong emphasis on capital value psf, replacement cost and mature yield on cost. The group adopts a valuation approach that works backwards from an envisaged post re-positioning investment value, factoring in likely void periods, capital expenditure, ERV, tenant incentives and an appropriate risk-adjusted rate of return, to determine a more rigorous understanding of today’s value.
Asset management driven performance – the group has a
flexible, creative and tenant-
focused approach to leasing and managing buildings. Core to the investment strategy is a belief that generating cash flow should prioritise over readying the building for exit.
Long-term investing – the group is privately owned and the long-term strategic direction of the business is not constrained by the need to satisfy analysts’ quarterly earnings forecasts or short-term market volatility. The group’s position as a long-term investor enables it to acquire undervalued and out-of-favour assets during times of market distress and to make decisions based on timescales which best suit the project rather than those based on the requirement for an early profit.