The Company will continue to strategically and actively manage its portfolio of assets post acquisition. Residential assets held for investment purposes are often under-managed due to the extent of private ownership in the sector. This provides the Company with the opportunity to add rental and capital value.
As part of the acquisition due diligence process an asset management plan will be prepared for each property. The objective of each asset management plan will be to maximise the property's long-term investment value, given its location and the prevailing market circumstances. The asset management plan will detail the capital spending required to optimise asset value. It will also consider how to increase rental values, in particular grow net rental income through the minimisation of property running costs, delivery of high occupancy levels and professional day to day property management arrangements.
Where appropriate, KCR Residential REIT plc will undertake improvements to increase value and yield, using external contractors. This could include gaining planning for refurbishment or extension of a property;
The Group will decide whether to outsource time intensive day to day property management activities to independent advisers, or internalise it, on a case by case basis. Property management includes negotiating tenancies, collecting rents and undertaking day-to-day maintenance.