Investment Strategy

DPFC has a clear investment strategy which seeks to mitigate risk at a portfolio and property level by targeting:

Total returns

Principally multi-let properties whose valuations typically tend to incorporate the contractual lease position reflecting a loss of income at tenant break options and lease expiries. In practice 77% of break options are not exercised and 75% of tenants renew their lease, thereby generating additional income and value.

Asset Size

Properties in the £3m-£12m strata of the market are often too small for institutional investors and too large for most high-net-worth investors enabling acquisitions at attractive income yields.

Environmental credentials

Both occupiers and owners favour properties that are energy efficient and which provide a healthy working environment. The Fund targets assets that meet those requirements along with assets that can be acquired and repositioned through active intervention.

Strong Locations

Acquiring assets where tenants want to be to optimise their business activities. Strong locations help keep vacancy rates low, mitigate void costs and improve income returns.

Asset management potential

Each property has a bespoke five year asset plan which identifies potential to enhance rental income and in turn capital value. A hands-on approach building on good working relationships with occupiers is a critical part of delivering asset management initiatives. The asset management of multi-let assets enables the income levels to be maintained with small variances as numerous lease events are actioned rather than the high level of void risk which can be experienced with single let assets.