Upload
cfg
View
541
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Speakers at CFG's Annual Conference 2012
Citation preview
Property Management Christine Janaway Bruton KnowlesJon Wright, Mencap
Introduction
Charity Commission Guidance
Fitness for Purpose
Keys to success
Quick Guide to property investment
Case Study – Mencap
Contents
Hallmarks of an Effective Charity Hallmark 5: Financially sound and prudent
“An effective charity has the financial and other resources needed to deliver its
purposes and mission, and controls and uses them so as to achieve its potential”
Charity Commission Guidance
Property – is it an asset?• Operational• Financial
Property – or is it a liability? • Unsuitable• Insufficient • Unsustainable • Obsolete
To think about …
Short term • Identify core property • Review -SSS• Identify surplus property• Assess liabilities/opportunities
Medium term• Restructure leases• Realise assets where viable • Add value to portfolio • Planned maintenance/development
Not fit for purpose?
Creating an effective property portfolio
Establish Board/Senior Management responsibility
Identify necessary resources• Internal• External
Set project plan
Implement
Review
Keys to success
Property Investment
What is the investor actually buying?
1 - ££££££
2 - ££££££
3 - ££££££
Quick guide to …..
Property Investment
Example 1
Rental income £100k pa
Tenant – say Sainsbury’s
Value??
Quick guide to …..
Example 2
Rental income £100k pa
Tenant – say Joe Bloggs Ltd
Value??
Property Investment
What is the investor actually buying?
££££££
Investment yield spread
“junk bonds” “gilts”
Where does property lie on this line?
Is it even on this line?
Quick guide to …..
Property Investment
What is the investor actually buying?
££££££
Quick guide to …..
Example 1
Rental income £100k pa
Tenant – say Sainsbury’s
Yield??
Example 2
Rental income £100k pa
Tenant – say Joe Bloggs Ltd
Yield??
Property Investment
Yield drives valueBased on –Covenant (tenant) strengthRental income Property type and location
Quick guide to …..
Mencap acquisition of the care homes on sustainable business model based on the principle that yield drives value
Background
Existing leases
Landlord’s (ie. Funding bank’s) requirements
Mencap’s agreed terms
Case Study - Mencap
Mencap’s perspective• Rent reduced by almost 30%• Removal of rental escalator • Secure and financially sound business model
Landlord’s perspective• Lower yield• Long term confidence in the income stream• Improved capital value – from £15 to £20m• Better funding terms from bank
Case Study - Mencap
Questions