Case Study
Optimising a 22-asset Industrial Portfolio for Strategic Real Estate Management
As a testament to our commitment to providing an awesome service, Excel in Property was recommended to Langtree by another client to help them strategically assess their existing industrial portfolio.
Client Overview:
Langtree is a successful commercial property company, active in property management, development, investment, and public/private property partnerships across the UK. With over 250 tenants spread across 22-assets UK-wide, Langtree aimed to strategically manage their extensive holdings by exploring various business plan scenarios.
Project Scope:
The project involved evaluating four distinct scenarios to enhance Langtree’s real estate portfolio and determine the optimum strategy for each asset:
- Maintaining the Status Quo - undertaking no substantial value uplift initiatives other than tidying up and reletting units at lease expiry.
- Site-wide Capital Expenditure - improving landscaping, access, roofs etc in order to entice higher rents across the sites.
- Improving every unit to EPC B - improving the energy efficiency of the units to increase rental values and secure more conscientious tenants
- Improving every unit to EPC A++ - improving energy efficiency to the max to maximise rental values, and secure longer term leases with better tenants.
Our Solution:
By using our template model, we were able to turn the project around much more quickly than if we had built a bespoke solution.. The model’s user-friendly interface ensures that updates and adjustments can be easily made by the client, fostering autonomy in managing their real estate portfolio, and eliminating the need for continual external input.
What set us apart from other options, was not just the sophistication of our financial modelling, but also the flexibility it offered - a crucial factor for Langtree’s dynamic needs.
Upon receiving detailed tenancy and asset information from the client, we seamlessly integrated the data into the template model. An in-person collaboration day followed, where we meticulously went through various aspects of the model, ensuring alignment with Langtree's strategic objectives.
Once the base model was set, Langtree were able to take over the controls and make adjustments to their business plans as appropriate.
Results & Benefits:
By strategically assessing and implementing various scenarios using the information relayed through the model, Langtree can optimise their investment returns and maximise their profits.
The empowered decision-making capabilities provided by our dynamic model position Langtree for sustained success in the UK commercial property market.
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