We have a superb network of developers, property agents, introducers, institutions and private family offices, built up over 10 years by our investment team. Investment opportunities take a variety of forms, including long term rentals yields, refurbishment and development projects, conversion, change of use and planning gains. Projects and opportunities are reviewed for intrinsic value (their long term net worth), looking for a discount, the safety margin and risk, the return on equity and the ability & expertise of the partner or developer who is responsible for carrying out the project. The best projects are selected and allocated to clients ranked by investor requirements and their appetite for risk and yield.
Financials
Target return 15-18% per annum net returns to investors after all fees and taxes
Initial Fund Size: £50m equity
Debt strategy–3:1 debt-to-equity ratio on equity committed
RHAM Fees
2% annual management fee
on total commitments during the investment phase around 2 years
on total fund equity required
20% Performance fee over a 10% hurdle
Structure
Open ended special purpose vehicle
5 years
English Limited Company
Drawn-down borrowings to drawn-down commitments not to exceed 3:1
Commercial Tenanted Real Estate
We believe that there are good long term opportunities in commercial real estate and offices in mid town London and selected cities across the UK, such as Birmingham. We purchase commercial assets for the long term with rising yields due to undersupply.
Typically funds raised from such investors invested in commercial real estate projects will have additional protection under an insurance policy against loss.
Strategy
Good quality, mid level opportunities in London
The Permitted Development rules introduced in 2013 have allowed the conversion of many offices in central London into residential property to fulfill the shortage in housing. The consequence is a looming shortage of good quality commercial office space in the mid market space
Opportunities
We believe there is considerable opportunities in Office buildings in major commercial cities in the UK, especially London, with strong potential in future asset management gains and growth potential.
Funding
Funds raised in this Bond will be allocated to development funding with select joint venture partners.
RHAM will act as property manager introducing high quality projects to the fund and for ongoing property management both in terms of conventional management but also in terms of enhancing value through planning consents, extensions, refurbishments and tenant management.
Properties mandated exclusively to RHAM will be acquired by a series of special purpose vehicles.
Strategy
Mid market affordable housing for 2nd home professional buyers
Upmarket unique properties in partnership with carefully selected development partners assessed on their development history, flair, and ability to deliver projects on time and to budget.
Opportunities
Middle market – “mass market” segment selling units to UK buyers not “International HNW”
Infrastructure spending and improved communication make some areas more attractive such as Cross rail routes: Crossrail (Ealing, Farringdon, Kings X)
Emerging London locations where UK professional families who can no longer afford Central London have moved to (Greenwich, Ealing, Wimbledon, N. Kensington, White Chapel, Hackney, Bethnal Green, Peckham, East Dulwich.
London & Major Conurbations - Suburbs
Traditional Prime London properties have squeezed the traditional middle class buyers out of the centre into the suburbs, often in areas with limited supply but great demand driven by domestic buyers (c. 70%)
The weight of capital allied to Prime London will find other outlets in these prime suburban areas.
There are substantial opportunities to deploy capital for good returns with proven development partners.
Lack of supply most acute in low to mid markets – in and around the £500-700 psf range
Emerging Hubs
Significant Population growth will stimulate demand into areas with improving transport links underpinning future capital values. Eg Crossrail and HS2
Infrastructure and government- driven regeneration initiatives
Shortage of affordable housing stock in the UK is a systemic problem
There has been a historic undersupply in London residential development, where minimum requirement is 42,000 new build units per annum but only 10,000 – 30,000 new builds coming to market annually. This has resulted in cumulative shortage in supply over time.
According to Oxford Economics, by 2021 the London population is set to rise 9 million. Fastest rate of growth ever underpinned by strength of economy
Approach 10 million by 2030
London Mayor’s strategy aims to deliver more than 400,000 homes over the next decade