Atlantic Leaf is an income-focused property company, targeting commercial property in the United Kingdom and selected developed markets. The company’s primary objective is to provide suitable hard currency returns to investors, through long-term investments in quality real estate assets which have sound property fundamentals, stable income profiles and good prospects for capital growth.
The company seeks to facilitate further value creation by preparing and implementing strategic, active asset management plans for each property. This may involve refurbishment, development, new lettings and lease extensions. Asset management potential is a key consideration when assessing acquisition opportunities.
These investments are typically held through subsidiaries incorporated in various jurisdictions, where doing so makes commercial sense from a tax or funding perspective. The following criteria are considered in evaluating each new investment opportunity:
- Quality, location and durability of assets;
- Core sustainable income flows, existing and projected occupancy rates and tenant covenant strength;
- Opportunities for asset enhancement through active management, including new lettings, refurbishment and development;
- Rental yield spread relative to fixed rate borrowing costs and key valuation and financing metrics; and
- Proper evaluation of a multitude of risk factors, including security of income, tenant covenants, residual values, the physical condition of properties, loan-to-value and interest covenants and maturity profiles in respect of leveraged purchases.