With the current success of the UK vaccine rollout, there is hope that we may now be heading towards some semblance of normality.
Against this background, we thought it would be useful to provide an update on how Rougemont’s investor portfolio has performed over the past 12 months and to consider how the property market, in general, may perform over the coming year.
In January of this year, no one could have predicted that in just a few months the global economy would be brought to an abrupt standstill as a result of a viral pandemic. James and Lynsey offer their views on the current economic situation and a future investment opportunity.
Lockdown and Beyond – Rougemonts investment market assessment
Rougemont, a leading Yorkshire-based commercial property investment company, has recently completed four new strategic acquisitions, worth £11 million.
Founded in 2009, Rougemont is one of the UK’s fastest-growing privately funded property investment managers and syndicated property investment companies, with over £120 million of commercial property under management.
Rougemont owns and manages a significant number of prestigious properties across the UK on behalf of its High Net Worth clients, including the Marshall plc headquarters near Leeds; Ward Hadaway Solicitors’ headquarters on Newcastle’s Quayside; and a Diageo plc bonded whisky maturation warehouse near Edinburgh.
Rougemont’s most recent purchases include established office locations in York, Sheffield, Glasgow and Bristol.
James Craven, managing director, explained: “Our investment strategy has, in the past, been focused towards acquiring long-term income with yields in excess of 7.50% per annum. However, the recent squeeze on pricing, due to the weight of available national and international investor money in the market, has made long-term income too expensive.
“In order to continue being able to deliver attractive returns for our investors, we have had to reassess our strategy. We are therefore now focussing on strategically-located opportunities which are, primarily, in large regional cities; are easily accessed by good transport infrastructure; and which are underpinned by a low passing rent in areas of strong occupier demand.
“Our recent acquisitions reflect this new approach, and combined with our pro-active asset management initiatives, we are delivering an increased rent roll and a capital appreciation across the portfolio.
“Rougemont’s investments are structured to deliver attractive returns and income security for our clients. For example, our recent purchase of the Ruskin Building, Sheffield, is yielding 8.60% per annum income return without any bank funding,” said Mr Craven.
Rougemont’s track record is impressive. For example, in 2018, the company undertook a restructuring of its Diageo tenanted property in Scotland resulting in an average investor return of 11.25% per annum during the first five years of ownership. More recently, the company crystallised an average investor return of 11.5% per annum following the sale of an asset acquired in 2012.
James Craven added: “It’s been an exhilarating 11 years for us. We have created a significant and diverse portfolio, incorporating property assets in a variety of locations, property classes and tenant sectors, which continues to increase in capital value and return strong annual income distributions for our clients.”
Leading Yorkshire-based commercial property investment company Rougemont Estates has strengthened its team with the appointment of Lynsey Underwood as Investment Manager.
Lynsey, who has moved from Avison Young in Newcastle, joins in Rougemont’s 10th anniversary year.
Lynsey Underwood commented: “I am delighted to join the team at Rougemont Estates. It is an incredibly exciting opportunity for me to become part of such a highly-regarded growing business, whose exceptional track record over the last ten years has led to a growing property portfolio of £120m and a long list of loyal investors.
“I was particularly attracted to the diversity of the role of the investment manager, which includes the sourcing of investment opportunities, driving value from the existing portfolio and managing investors’ interests.
“The prevailing political and economic uncertainty clearly provides its challenges, but I am very excited to be working alongside managing director James Craven and focusing all our efforts on achieving great returns for our investors.”
James Craven added: “It is with great pleasure that I welcome Lynsey to Rougemont Estates. This is a significant appointment, Lynsey’s knowledge, market contacts and commitment will be an invaluable asset to Rougemont.”
Rougemont is in the news today with two articles on the recent purchase of Sandgate House on behalf of a private client…
The Property Week article is here (subscribers only I’m afraid)
The Newcastle Chronicle article is available to all here
Photo of Sandgate House on Newcastle waterfront bought by Rougemont Estates on behalf of a private client.
CONGRATULATIONS are in order to Rougemont’s managing director who completed the Royal Ocean Racing Club’s (RORC) Transatlantic Race from Marina Lanzarote to Port Louis Marina, Grenada.
Aiming for a new transatlantic world record and race victory, Mr Craven joined as one of eight guests alongside a professional crew aboard Leopard, an internationally renowned, record breaking, 100ft, Super Maxi yacht.
Leopard crossed the finish line of the RORC Transatlantic Race this morning at 07h 22m 37s GMT taking the line honours in the monohull class. It will be another couple of days before the overall RORC Transatlantic Race trophy winner is announced, with the best corrected time under IRC.
A great achievement by all and Mr Craven commented: “It was an amazing experience and whilst we are naturally disappointed not to break the world record, crossing the line first after such tough conditions is fantastic.”
Dockside at Camper & Nicholsons Port Louis, Grenada: Leopard 3 secures Monohull Line Honours and the International Maxi Association (IMA) Trophy in the 2016 RORC Transatlantic Race © RORC / Arthur Daniel
Syndicated property investment provides investors with the opportunity of becoming part owner of a quality tenanted commercial property and receiving a pro-rata share of the rental income and any future capital growth.
SEVEN benefits of participating in a Rougemont syndicated property:
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