NEWS & PROJECTS
RESI AWARDS 2017
Odysseus were delighted to be nominated & to reach shortlist for a second consecutive year for the RESI Awards, in the "Asset Manager of the Year" category. The RESI Awards organised by Property Week brings together the key players in the residential market & its successess in the previous year.
Oystercatcher Portfolio Sales 119% Premium to MV
Following a strategic portfolio review & IRR analysis in Q1 2015, Odysseus took seven assets to market through Savills. All assets were set to underperform & required significant capital expenditure to maintain in addition to being the incorrect lot size for the fund. The seven properties were located regionally & historically suffered from high maintenance with void expenditure. Odysseus reduced both these costs through intensive asset management, resulting in a void rate of c.2% upon sale. The sale completed in November 2015, 19% ahead of valuation, providing strong capital returns to the Fund & demonstrating the strong competition in the market for institutionally managed, PRS stock.
PRS FUND MANAGER
Assembly, management, rationalisation and expansion of institutional grade PRS platform consisting of 275 properties pan UK. Asset & Fund Management contract with UK institutional client.
PRS INVESTMENT, LONDON
Odysseus identified & acquired 16-24 Hardwicks Square on behalf of Scottish Widows Investment Partnership in Wandsworth. The asset was bought out of receivership & required intensive asset management to improve the property to an institutional grade. Having refurbished over half of the apartments, instructed roof works & reduced voids whilst providing a strong income return & increased tenant retention.
Wandsworth was a target area for Odysseus due to the redevelopment & regeneration of the Ram Brewery site & in turn Wandsworth Centre & the asset has increased by c. 23% in capital value since acquisition & outperformed the Outer London benchmark in 2015 by 320 bps.
COREM, SECOND AQUISITION
COREM IM has completed its second UK purchase since launch, acquiring a multi-let retail block on Broad Street, Reading from Standard Life Pooled Property Pension Fund for c.£20m. The purchase represents a yield of just over 6% & compliments the August 2016 purchase of the House of Fraser store in Leamington Spa for c£18m. Both purchases were completed in a short timeframe, utilising 100% equity.
Odysseus Cleanslate acquired & are providing the construction & development management capibilities for a 44 unit residential development in Newmarket England. Included within the site is a Grade II listed Victorian malt house, which is in the process of being converted into luxury apartments. The residential apartments & townhouses went to private sale following completion in August 2016.
Equity for this development was provided from Singapore, with OCS seeking similar development opportunities to suit their requirements.
Oystercatcher Outperforms Benchmark
Our PRS Fund did exceedingly well over 2015, outperforming the benchmark by over 300 bps & returning 740 bps ahead of performance in 2014. Odysseus rebalanced the portfolio in 2014 & carried out significant improvements through efficient & intensive management to ensure the fund performed well in 2015. All assets held within the portfolio are secondary & are not specifically build to rent, so managing leakage remains high priority.
Fund returns outperformed both the residential & commercial universe in addition to property equities. Capital growth realised 200 bps relative outperformance, primarily due to focused investment in targeted locations & the portfolio sale. Income return outperformed the benchmark, particularly in Inner London & North England. Leakage – The fund has significantly improved gross to net leakage over the year by over 60% while moving up 52 percentile places from 2014.
PROPERTY INVESTMENT, EDINBURGH
Acquired ex Edinburgh Academy School boarding houses out of administration for UK institutional investor. Obtained change of use, DPP & disposed to market for substantial IRR
COREM provides a fresh investment platform to selectively acquire a portfolio of commercial properties on behalf of clients throughout the UK. With an initial £100m – £150m already deployed to generate a long term income on existing assets & the ability to further enhance returns through active asset management for its investors, COREM successfully completed c£38m investment in it's first six months -
RCIS MATRICS SHORTLIST
Congratulations to Amy Davis, Investment & Asset Manager at Odysseus who has made the shortlist for the 2016 RICS Matrics Young Surveyor of the Year Awards. These awards recognise & celebrate the most inspirational young surveying professionals in the UK & are open to all young surveyors (35 years & under) across the UK.
Odysseus is delighted to be nominted for two RESI Awards - Asset Manager & Newcomer of the Year!
PROPERTY INVESTMENT, MANCHESTER
Odysseus identified & acquired off market, Devell House in Manchester. As another target area for Odysseus, this asset provided all the characteristics of an excellent PRS opportunity being located next to the new Manchester Medical School & Manchester University.
Located less than 5 minutes from Oxford Road, an arterial route into Manchester City Centre & one mile from Manchester Oxford Road station, tenants include postgraduate students, doctors, nurses, international students & families. The asset provides PRS accommodation for those not suited to the usual student accomodation. An historic low void rate from marketing to reserved standing currently at -1 day, rents have been tested across the block with increases of c.13% achieved in 2015.
Richard, Barrie, Mark & Geraldine Ong (Drew & Napier) from Odysseus visit Beijing to open up investment route into UK for SOE.
Odysseus identified & acquired this prime location, off-market asset (Port East Apartments, Canary Wharf) on behalf of Scottish Widows Investment Partnership in early 2014. Following acquisition, Odysseus continue to provide ongoing Asset Management services which has provided the fund with strong capital & rental growth over the past 24 months.
REDEVELOPMENT BID, EDINBURGH
Odysseus was responsible for the assembly of design team & led the bid for the major redevelopment of the city's historic Donaldson's College, a prime site of over 18 acres & including the beautiful Category A listed, Playfair Building in Edinburgh.
Strategic Project Director
Odysseus was appointed strategic project director for 2,500 unit, new town development in Scotland, subject to planning.