News

A NEW STRATEGY FOR GROWTH

January 2010

The Property Investment Group is the largest member of the Howard Group of Companies. A new five year strategic plan has recently been completed focusing on growing this element of the business.

Michael Summers is the Group's Investment Director and outlines some of the key features of the new strategy. Michael has some 25 years experience in the commercial property world. Before joining the Howard Group in 2003, Michael worked for Peer Group Plc in London and before that, Taylor Woodrow.  

Michael comments; "The core objective for our investment group is to reposition the property portfolio through a combination of disposals of older stock and acquiring new investments which meet specific criteria. New investments will be sourced from within a more tightly defined geographic area. This is best described as East Anglia and the East Midlands. Furthermore, the drive towards growth will focus upon tenant quality and covenant strength. We are typically looking to acquire fewer, but larger properties, each perhaps £5-10m in value."  

The division is well placed to achieve these objectives with access to over £50m of funds. Although this is a five year plan, the team is confident that progress will be made over the coming couple of years. There will also be opportunities for properties to be acquired from the Group's development business - HPG Developments. Several projects are underway which offer potential long-term investment assets ideal for retention.  

Michael continues, "The task ahead will certainly be challenging. Good quality opportunities with long secure income are hard to find. Key to all this is our ability to develop ever stronger relationships with property Agents who possess good local market knowledge, with access to owners and occupiers and those that have demonstrated they can identify interesting angles."  

As part of the efforts towards reshaping the existing £100m portfolio, the Group has recently disposed of a portfolio of multi-let industrial estates which lie outside of the newly redefined target area. A series of 'road show' presentations are planned for the new year during which the Group will be outlining these plans in more detail.