Vivion’s strategy creates opportunities for investors to participate in well-diversified real estate portfolios that deliver attractive cash flows and robust total returns via income generation and capital growth. Our focus is primarily on office or office-led investments in Germany and hotel property in the UK. We take a long term view on property investment; our aim is to provide consistent value growth. However, our continuous market analysis and rigorous process of portfolio optimisation enables us to act on identified shorter term market opportunities. This disciplined but dynamic approach to real estate investment is made possible by a management team with a breadth of expertise across all aspects of the value creation chain.
Sourcing new assets ‘off market’ is our preferred route and secures better margins and greater potential for asset management gains. Our entrepreneurial approach to property acquisition ensures that we are seldom competing for such assets in the open market. Vivion also takes a prudent approach to finance and capital structuring. We have a range of institutional capital providers, both in the debt and equity markets. Our modest debt levels, predominantly comprised of long dated unsecured funding at fixed rates, ensure a conservative loan-to-value (LTV) ratio and allow us to maintain adequate. These measures are designed to ensure that we always maintain adequate liquidity.
We work closely with our tenants for mutual benefit. This approach helps to maintain stable cash flows in the long term, improves rental income and ensures effective cost control. We aim to:
- Maximise rental income from long-term leases to high-quality tenants
- Carefully control capital expenditure and minimise non-recoverable expenses
- Use our superior asset management capabilities to create and enhance value
- Build strong relationships with our tenants across the portfolio
Sustained investment performance requires constant vigilance throughout the life-cycle of every asset in the portfolio, which we achieve by:
- Taking a strategic approach to investments that will enhance value
- Continuously monitoring portfolio composition and maturity
- Employing real-time reporting and control of portfolios, facilitated by the breadth of our collective management skills
- Adding value through active asset management
Our approach to asset selection is founded on a disciplined acquisition strategy with strong and clear investment criteria. Fulfilling this strategy is made possible by our collective deal sourcing capability:
- The rapid growth of Vivion’s portfolio has been facilitated by our ability to identify ‘off-market’ transactions with growth potential
- We have developed an acquisition process that combines diligence with efficiency
- Thorough research enables successful execution on a high proportion of our pipeline
- Our focus is on Europe’s strongest markets. Our pipeline concentrates on Germany but with scope to make opportunistic acquisitions in the UK
Vivion’s capital structure is optimised for maximum financial flexibility:
- We regularly access both debt and equity capital
- We maintain capacity across the different debt types
- We utilise a diverse pool of institutional lenders and capital providers
