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Castleforge

Investment Philosophy

Vertical Integration:

Our team is directly involved throughout an investment’s life cycle.

Our integrated model combines direct asset management, specialist research capabilities and operational expertise to deliver superior results. We have in-house specialists who are directly responsible at each stage of a building delivery program and work alongside leading operating partners.

Our vertically integrated approach creates outperformance…

  • Expedites delivery of the business plan
  • Aligns incentive structure with investors
  • Enhances decision-making through direct, unbiased information from on-site activities
  • Improves response time when engaging with third parties
  • Maintains quality and consistency of asset management

 Thematic Investing:

Our proprietary internal research team uses a range of information sources to map out themes around legislative arbitrage, demand / supply mechanics, demographic and structural adjustments and infrastructural improvements. From here we refine our asset selection criteria and build competitive advantage.

We invest thematically using our deep market insights to provide a framework for our acquisition strategy.

Our research identifies themes that supplement our base case…

  • Macroeconomic trends or risk factors that impact broad investment selection
  • Cyclical themes where an asset type or submarket is mispriced relative to construction cost, operational fundamentals or surrounding infrastructural developments
  • Structural themes to build operational competitive advantage that benefits from secular changes in the supply-demand dynamics

 Research Focus:

A key component of Castleforge’s thematic investing is its research function.

We have focused on developing this research function to support the development of its investment themes and to provide deeper insight into the markets in which it operates, allowing it to apply critical and quantitative analysis to identify, test and refine investment hypotheses. Castleforge can then invest along scalable themes that have been refined and verified. Once an investment hypothesis is proposed,the hypothesis is challenged and refined using a number of tools and sources, including: real estate data provided by estate agencies and public bodies, demographic and spending data, infrastructural and transport analysis, statistical analysis, and internally developed innovative machine learning programs. Ultimately, our Strategy Committee approves a verified investment theme and, once approved, we can target investments supported by the investment theme, resulting in clear and thoughtful communication and investment decisions.

Operational
enhancements:

Our purpose built platforms provide sustainable competitive advantages and enhance yield.

Operating platforms developed in-house capture unmet demand and allow out performance at the asset level.

Castleforge seeks to enhance the tenant experience through offering a quality service and fostering a strong sense of community.

Flexible Serviced Office Provider:

  • Well-designed contemporary offices, workspaces and meeting spaces in convenient city centre locations
  • Captures the increased demand for flexible serviced offices that can be scaled in line with business demands
  • High quality onsite team ensures tenants a personalised service
  • Ranked in the top four co-working spaces by IPSE
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Multifamily Residential Platform:

The multifamily or PRS market is relatively new to the UK. For example, only 19% of renters in the UK live in multifamily housing compared to around 30% in the US and 40% in Germany. Despite this, significant institutional demand has developed for stabilised, developed multifamily assets. Specialist property investment in the UK increased by 40% in 2017 relative to 2016, with PRS receiving the largest share (9%) of the UK investment market, ahead of automotive, hotels, student property and healthcare.

  • Professional, responsive, corporate landlord enhancing the tenant experience
  • Standardised, high quality product
  • Modern units rented at affordable levels
  • Increased operating efficiency and management synergies across portfolio
  • Locations around key employment hubs
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