Investment

Hollis Hockley dispense valuable market advice to potential purchasers and sellers of property investments by virtue of our historical and current knowledge of the M3 marketplace. The Partners welcome the opportunity to meet with investors to discuss requirements.

The firm deals with investment sales on behalf of clients, involving marketing and the preparation of detailed particulars or brochures incorporating tenancy schedules and targeted mailing.

We introduce appropriate on and off market investment opportunities to clients who are actively and selectively looking for income producing assets. We provide proactive views on value and yields and income growth prospects given our knowledge of current and historical demand and supply and the prevailing occupational market conditions.

We seek to match opportunities to client’s specific acquisition strategies and investment briefs. In many cases, we are able to offer purchasers the ‘inside track’ and ‘early mover advantage’.

FAQs

What is an investment yield?

The income return on an investment. This refers to the income received from an asset and is usually expressed as a percentage based on the investment cost relative to the current market value.

How important is company or organisation covenant quality in any investment appraisal?

Equivalent yields are the UK property market’s mechanism for communicating the current level of return on commercial property investments. In moving (rising or falling) markets, the relationship between passing rent and the actual market rent, can diverge and therefore the initial yield and the reversionary yield also widens. Neither of these two measures is deemed to be a reliable indicator as they do not take account of timing and extent of increases or reductions in value at lease expiry or review.

 

The solution has been to determine the internal rate of return of income to the next rent change (rent review or lease expiry) and discount the perpetual rental value thereafter. This produces a weighted average of the initial and reversionary yields.

What is an equivalent yield?

Equivalent yields are the UK property market’s mechanism for communicating the current level of return on commercial property investments. In moving (rising or falling) markets, the relationship between passing rent and the actual market rent, can diverge sharply and therefore the initial yield and the reversionary yield also widens. Neither of these two measures is deemed to be a reliable indicator as they do not take account of timing and extent of increases or reductions in value at lease expiry or review.

The solution has been to determine the internal rate of return of income to the next rent change (review/expiry) and then discount the perpetual rental value thereafter. This then produces a weighted average of the initial and reversionary yields.