Private High-Net Worth Investors
IDRE are here to help investors who are looking to invest in real estate but lack the expertise or time to take on more demanding projects. At IDRE we are focussed on acquiring value-add assets, driving value, improving ESG and creating long-term returns for investors and the planet. We offer a range of set up options for each investor, these include:
Joint Ventures: IDRE will take on the role of the operational manager providing our services in acquiring, managing, developing and exit assets. You as the investor will act as the Capital/Investor financing the project. As part of the acquisition we will form a Real Estate Joint Venture Agreement which establishes everyone roles, responsibilities and potential returns alongside anticipated timeframes to exit the deal. For this service we wil:
Source the asset
Appraising the asset through cashflow models
Acquire the asset
Engaging in a strategic asset management plan (see below for more detail)
Development (where required)
ESG Upgrades - Looking at biodiversity, lighting and heating upgrades, sustainable technologies and community engagement.
Depending on the the strategy we will either hold the asset or dispose of it at the end of the strategy.
Asset Management: An investor may bring us in on their existing asset/portfolio and we will provide;
A review of the current asset(s)
A Strategic Asset Management plan for each asset, to include;
Improved tenant engagement
Service charge review (or set up if non existent)
Lease Reviews - Futureproofed with Green Lease Clauses
Negotiations with tenants
Enhanced Rental Streams
Capital Expenditure Programs
Regulation Alignment (including MEES)
Further ESG Upgrades - Review of solar, ASHP, Batteries etc
IDRE has a long history of providing investment and asset management advice as such we are able to cater for all or part of your real estate journey
As investment managers we specialise in value-add assets so it’s important that our investors are aware of the risk of investing in value-add assets and what we do to mitigate those risks as far as possible.
With any investment there will always be some risk associated with purchasing it, and it’s important to understand the basic relationship between risk and reward.
At IDRE we look to purchase assets with some risk so that we can provide a good level of returns for our clients. We have a strong track record of purchasing and asset managing assets in the secondary and tertiary sectors but will review each asset on an individual basis taking into consideration, location, quality, local demand and supply dynamics before making a decision on any purchase.
All our assets will have value-add angles and will often require capital expenditure programs to reposition or refurbish the assets in line with current market trends, regulations and occupier demands to futureproof them for our hold period and for future investors should we look to exit. It is therefore important to understand that an investor will need to invest not only the initial purchase price but the capital expenditure costs as well to allow us to quickly and efficiently upgrade the asset.
All investment are carefully selected and fully appraised so a full understanding of costs including; purchase, tax, capital expenditure, and fees are highlighted prior to purchase a long with potential returns.
Investor Types
We work with a range of investor types depending on their circumstances and requirements. These include;
Private Investors: £10,000 - £100,000
Sub High Net Worth Investers: £100,000 - £5,000,000
Very High Net Worth Investors: £5,000,000 - £30,000,000
Ultra High Net Worth investors: £30,000,000 +
Strategy
Our Core strategy is as value investors, we look for assets which need capital expenditure and intensive asset management to add value. We looked for unloved, or mismanged assets, or those in need of refurbishment where we can quickly add value, increase rents and enhance its value to provide our investors with strong returns.
Asset Types
Residential: We can provide access to a mix of residential opportunities, which include;
Individual residential investments; fully finished projects with tenants in place that can be held long term as buy-to-let investments.
Individual residential projects; where we can provide a full refurbishment strategy for a quick exit or longer term buy-to-let strategy.
Purpose built accommodation; whether that’s residential, student or social accommodation.
Refurbishment and/or development, from a plot of land or an existing structure we can provide planning, refurbishment and development services right through to completion.
Commerical: On the commercial side we can provide access to a range of asset classes but with our core focus on industrial and offices.
Industrial assets benefit from low obsolescence, strong demand and a shortage of supply. Industrial has provided the strongest rental of any asset class over the last 5 years and will likely continue to provide strong returns over the next 5-years.
Offices are currently counter cyclical, many investors have become cautious due to softer yields, hybrid working and ESG/EPC regulations requiring significant capital expenditure. However, offices have still performed strongly, there is definitely a movement towards smaller quality space, with strong ESG credentials, so acquiring office that fit or can be repurposed to meet these criteria are key for any investment strategy.
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We have a number of opportunities for investors to invest in and acting as the operator/developer we provide a promote structure to guarantee the investors returns prior to us taking our profit share.
For small scale residential opportunities we can provide access from as little as £15k, but for commercial deals we tend to expect a minimum investment of £750,000.
Returns will vary based on each project but we would always provide a minimum of 8% NIY, or an IRR of 15%.
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Some private investors have started to use us as their operator on their already establised portfolio’s. We can provide investors with a level of expertise necessary to help them to;
Drive Rental Returns
Improve Tenant Engagement
Meet ESG/EPC Regulations
Enhance Value
Here’s some of the things we can assist with;
Reviewing your current portfolio
Improving EPC and ESG credentials
Review PV Cells and batteries to mitigate rising energy costs for occupiers
Source further assets
Set up debt finance
Liaise and instruct other disciplines
Highlight, budget and implement capital expenditure
Project and Development managment
Portfolio oversight
Disposals
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Do you already have a portfolio of stocks & bonds? Looking to diversify with property but don’t have the time or confidence to it all by yourself, then get in touch so we can help you along your wealth growth journey.
As you’ll be aware, stocks and bonds are easily accessible via online investment platforms, however, direct real estate investment is a little harder to access.
IDRE can provide expert property advice to help you invest, refurbish, let, manage and hold assets as part of your balanced portfolio.
Whether investing in individual residential assets or commercial units at IDRE we make it as easy as investing in stocks and bonds. Or if you want to be more hands-on we can help you every step of the way.
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Why are you looking to build a balanced portfolio?
RETIREMENT PLANNING
We can help you understand your options and the potential returns you can expect from your investments so you can retire knowing your property investments are well looked after.
GROW YOUR WEALTH
We can help you better understand your current position, what you want to invest and how you can grow this over time through acquiring well priced assets, carrying out an asset management plan, and either using debt to hold the property or disposing and sustainably reinvesting.
CREATE GENERATIONAL WEALTH
We can help you build a portfolio that will benefit generations to come either through sustainable growth of your original investment or through continued investment.
PENSION CONSOLIDATION
We can help you better understand your current pension set up so you can better utilise your pension pots to own property.
By engaging with us we can help you with;
Advising on the right asset class(es) for you
Sourcing & acquiring properties
Setting up debt finance
Full hands-off management
Project managing any capital expenditure works
Ongoing asset management
Portfolio oversight
Disposals (when required)
