Real Estate Investment & Development

Greyfriars Investments Core to Greyfriars’ experience is extracting value from real estate.

In an environment where interest rates are rising from a historically low base and transaction costs remain high, stock and manager selection will be key to delivering strategy. Greyfriars identify teams that will deliver on opportunities, devising and implement funding structures which allow maximum optionality for investors to drive value, while protecting their investment throughout the ownership cycle.

Key Highlights

Investment: Industrial
  • Large, prime single let industrial unit sourced off-market in 2016 through our network at an attractive yield.
  • The purpose-built property occupied a prominent plot on an established business park with excellent and improving transport infrastructure underpinning long term rental growth.
  • At lease maturity it combined strong re-letting potential with low site coverage which drove broad re-development options.
  • Initial business plan anticipated holding the asset to lease maturity and re-letting to benefit from income.
  • Strategy was revised in 2018 following an unsolicited bid at pricing that exceeded the top end of the local market and maximised return for investor delivering a 1.36x cash return, ahead of forecast, allowing capital to be recycled into new projects
Residential Development: Edinburgh - Conversion
  • Opportunity identified alongside a proven management team to generate above market returns by developing compact, high-quality boutique, residential accommodation in prime city centre locations.
  • A category A listed, 19th Century townhouse located in one of Edinburgh’s best Georgian Squares, adjacent to Edinburgh city centre, was identified and acquired for conversion to residential.
  • A mix of uniquely designed and compact studios, 1 and 2-bedroom apartments were created from this space, blending contemporary and original features.
  • Sales exceeded expectations and delivered market leading prices of 20% above appraised levels.
Residential Development: Edinburgh - New Build
  • A site on the fringe of Edinburgh’s New Town overlooking the Water of Leith was acquired with the benefit of an unimplemented legacy consent.
  • It was identified as being an improving area where there was the potential to deliver enhanced returns through delivering high quality product to buyers, that was otherwise unavailable in the area.
  • Post-acquisition, the team worked extensively with stakeholders, securing enhanced planning consent for an architecturally striking, 11 apartment scheme.
  • Our strategy was validated through strong buyer demand, with off plan sales achieving prices 10% above appraised levels and strongly ahead of their local market.
Medium Term Development: Edinburgh New Town
  • A multi let office building acquired in the improving West Central/Haymarket area of Edinburgh.
  • The property was identified as combining the potential of strong and improving income generation with attractive and deliverable capital upside through medium term residential redevelopment.
  • Our strategy is to drive the rent roll and maximise yield until redevelopment.
  • Asset management initiatives have grown the rent roll by c40%
Hospitality: New Town, Edinburgh
  • Three Georgian townhouses were opportunistically acquired in 2016 during the market dislocation which followed the Brexit referendum.
  • Greyfriars identified the opportunity of converting vacant office space to serviced apartments to generate sustainable revenues through Edinburgh’s rich business and leisure tourism markets.
  • Initial development and operational risks were mitigated via collaboration with proven development and operational partners.
  • The property was converted into an 82-unit aparthotel offering a range of studios and one bed apartments.
  • Greyfriars’ active approach to asset management and value protection has continued since opening, using the hiatus caused by Covid-19 to change management team and appoint a new operator with a strong UK pedigree and focus, to deliver on the potential of the location.