Annual Report 2012 - Development Securities PLC
Annual Report 2012 - Development Securities PLC
Annual Report 2012 - Development Securities PLC
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8 <strong>Development</strong> <strong>Securities</strong> <strong>PLC</strong> / <strong>Annual</strong> <strong>Report</strong> <strong>2012</strong><br />
Group Strategy<br />
Applying development expertise in<br />
a risk-averse manner across a diversified<br />
portfolio to generate attractive returns<br />
We apply our real estate development and<br />
investment expertise across three principal areas,<br />
each guided by a distinct approach, to achieve<br />
a diversification of assets that minimises risk<br />
and maximises potential gains.<br />
Major<br />
development<br />
portfolio<br />
<strong>Development</strong><br />
and trading<br />
portfolio<br />
Investment<br />
portfolio<br />
Focus on prime office developments in specific<br />
locations with limited potential supply<br />
Continue to seek opportunities for major<br />
forward-funded development projects but avoiding<br />
Central London acquisitions where price does not<br />
justify risk<br />
Focus on the right buying opportunities where terms<br />
of trade are in our favour and where sufficient occupier<br />
demand exists to support our exit strategies<br />
Targets, on average, a three to four year turnaround<br />
of assets and IRRs of 20 per cent and above<br />
Capital gains achieved by upgrading secondary assets<br />
into prime/near-prime, effectively arbitraging the yield<br />
differential between these two asset categories<br />
Targets assets with core defensive income and<br />
enhancement potential in sectors where occupier<br />
demand is strong and supply of accommodation<br />
restricted<br />
Drives income growth through proactive asset<br />
management<br />
Provides stable income and prospect of significant<br />
capital appreciation<br />
Including joint<br />
ventures and strategic<br />
partnerships