1E - Property Management - Christine Janaway & Jon Wright

746 views

Published on

Speakers at CFG's Annual Conference 2012

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
746
On SlideShare
0
From Embeds
0
Number of Embeds
216
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

1E - Property Management - Christine Janaway & Jon Wright

  1. 1. Property ManagementChristine Janaway Bruton KnowlesJon Wright, Mencap
  2. 2. ContentsIntroductionCharity Commission GuidanceFitness for PurposeKeys to successQuick Guide to property investmentCase Study – Mencap
  3. 3. Charity Commission Guidance Hallmarks of an Effective Charity Hallmark 5: Financially sound and prudent“An effective charity has the financial and other resources needed to deliver its purposes and mission, and controls and uses them so as to achieve its potential”
  4. 4. To think about …Property – is it an asset? • Operational • FinancialProperty – or is it a liability? • Unsuitable • Insufficient • Unsustainable • Obsolete
  5. 5. Not fit for purpose?Short term • Identify core property • Review -SSS • Identify surplus property • Assess liabilities/opportunitiesMedium term • Restructure leases • Realise assets where viable • Add value to portfolio • Planned maintenance/development
  6. 6. Keys to success Creating an effective property portfolioEstablish Board/Senior Management responsibilityIdentify necessary resources • Internal • ExternalSet project planImplementReview
  7. 7. Quick guide to ….. Property InvestmentWhat is the investor actually buying?1 - ££££££2 - ££££££3 - ££££££
  8. 8. Quick guide to ….. Property Investment Example 1  Example 2 Rental income £100k pa  Rental income £100k Tenant – say pa Sainsbury’s  Tenant – say Joe Bloggs Value?? Ltd  Value??
  9. 9. Quick guide to ….. Property InvestmentWhat is the investor actually buying?££££££Investment yield spread“junk bonds” “gilts”Where does property lie on this line?Is it even on this line?
  10. 10. Quick guide to ….. Property InvestmentWhat is the investor actually buying?££££££ Example 1  Example 2 Rental income £100k  Rental income £100k pa pa Tenant – say  Tenant – say Joe Bloggs Sainsbury’s Ltd Yield??  Yield??
  11. 11. Quick guide to ….. Property InvestmentYield drives valueBased on –Covenant (tenant) strengthRental incomeProperty type and location
  12. 12. Case Study - MencapMencap acquisition of the care homes on sustainable business model based on the principle that yield drives valueBackgroundExisting leasesLandlord’s (ie. Funding bank’s) requirementsMencap’s agreed terms
  13. 13. Case Study - MencapMencap’s perspective • Rent reduced by almost 30% • Removal of rental escalator • Secure and financially sound business modelLandlord’s perspective • Lower yield • Long term confidence in the income stream • Improved capital value – from £15 to £20m • Better funding terms from bank
  14. 14. Questions

×