First Alliance Properties targets opportunities that are under-valued, with above average rental and capital growth prospects. Properties will typically be multi-let and directly managed. They will generate secure base level returns with the potential to deliver significant upside returns by exploiting asset management angles.
The return characteristics offered by regional UK commercial properties or portfolios are generally prefered. Asset management potential may include letting vacant accommodation, carrying out rent reviews and lease renewals, restructuring leases, development of additional space, refurbishment of common areas and the purchase of adjoining ownerships.
There is a strong preference for ‘off-market’ deals or those that have only been exposed to a restricted market. Potential transactions are identified by specialist property agents or directly through the extensive contacts of the team. First Alliance Properties will put together the business plan and return forecast, at this point the proposal is presented to potential investors.
The professional team (agent, lawyer, building surveyor etc) is carefully managed throughout the acquisition process and First Alliance Properties typically arrange any senior and mezzanine debt required to complete the purchase. Prior to closing, the focus is on forensically carrying out the due diligence and evolving and checking the business plan. Post-acquisition, First Alliance Properties will be responsible for the ongoing asset management and the execution of the business plan until exit.