Maven has assembled a highly experienced property team, who have access to a range of interesting commercial and residential projects across the UK, many of which are introduced off-market.
Maven offers a range of opportunities to investors who are looking for exposure to well-researched UK property transactions, offering attractive risk-adjusted returns.
Transactions are structured so that there is significant potential for capital gains to be made from development or through acquiring properties where value can be added through active asset management – capitalising on possible changes of use, refurbishment and redevelopment
Maven’s investment approval process ensures that all prospective investments are subject to thorough due diligence to ensure that downside risk is minimised and healthy risk-adjusted returns are achievable.
Risk Warning
Property investments may be difficult to realise and carry a higher degree of risk than many other forms of investment. These investments are intended for Professional Clients only. Such investments are only suitable for investors who are able to evaluate and understand the risks and merits of such investment and have the resources to bear any loss that may result from such investments.
Fundamentals
Active asset management
Unlike other asset classes, property offers opportunities to add investor value through active asset management. There are a number of ways in which an experienced and skilled manager can add value to a property including:
Potential tax advantages
Property investment and development in the UK can also provide a number of tax benefits, by taking advantage of tax reliefs and allowances such as Business Property Relief or Capital Allowances.
Diversification
Property affords investors access to more predictable investment returns from asset backed opportunities and may therefore be suitable as part of a diversified portfolio.
Inflation hedging
The rental income from property typically provides an effective hedge against inflation. Commercial property leases typically provide for upward-only rent reviews, with rental uplifts increasingly in line with the Retail Prices Index, therefore offering a degree of inflation protection.
Although we see and appraise many potential deals, we undertake a select few where we are satisfied that each transaction matches the risk/return profile of our investor base. Every aspect of a transaction is subject to a rigorous process of due diligence, both by Maven’s specialist team and third-party professional advisers in the property sector.
On a typical property investment we target a MoM return in the range 1.3x to 1.8x the initial investment, over a holding period of one to two years, with transactions principally structured to offer the potential for achieving meaningful gains, either through development or by acquiring assets where value can be added through active management, including rent reviews, lease extensions, opportunities for possible changes of use, or refurbishment.
Each opportunity will be fully appraised and risk assessed, and will only be progressed where our team see clear potential for positive investor returns. The Maven team works closely with the developer throughout the process, to implement a specific project plan and work towards an exit within a timescale determined at the outset. We also minimise risk through undertaking detailed planning and fixed price contracts wherever possible.