The difference active management makes to an asset.
Property management keeps a building running. Asset management changes what it is worth. Here is the bridge from one to the other: situation, what we did, and the outcome in numbers.
The situation
A commercial building acquired for £3.0M. On paper, a steady asset. In practice, drifting: two floors empty for over a year, the remaining leases short and stacked with break clauses, running costs unmanaged, and a compliance deadline approaching that the owner, based overseas, had not been warned about.
A passive owner would have collected the rent that came in and waited. The value would have stood still, or slipped.
What we did
Let the voids
Two vacant floors carried for over a year. We repositioned and let both on full repairing leases.
Regeared the leases
Short leases full of break clauses, reworked into longer income with stronger covenants, the thing buyers actually pay for.
Cut the running costs
Service charge, insurance and management fees retendered. Unrecoverable leakage removed from the bottom line.
Refurbished for compliance
A targeted capex programme lifted the asset above the MEES minimum and out of obsolescence risk.
Refinanced on strength
With clean income and a compliant building, we refinanced at a materially better margin and released equity.
The outcome
Passive hold
~7% IRR
Collect rent, no intervention.
Active management
~18% IRR
Voids let, leases regeared, refinanced.
What could active management do for your asset?
Send us the situation. We will tell you honestly where the value is, and whether there is enough of it to be worth our involvement.