Drag

Investment strategies

Real Estate Equity

Investment approach

We operate across the capital stack

The Equity strategy is focused on the deployment of private capital as Preferred Equity into a small number of investment opportunities that offer attractive risk-adjusted returns over short to medium periods.

We invest our funds alongside operators who are specialists in their chosen sector and have an exemplar track record in similar projects.

Between £1,000,000 to £5,000,000 can be deployed per opportunity with a particular emphasis on well-established or growth locations. We maintain a flexible approach to structuring and consider most assets.

Our preference is for residential assets in prime locations.


Sectors

The sectors we invest in

Preferred Equity can be deployed across the three sectors as detailed below, and we consider all opportunities on their individual merits.

The team can consider a wide range of proposals, including single or portfolio acquisitions, residential developments, refurbishments and asset stabilisations.

Residential

Info
Residential
  • Prime single or multi-unit development opportunities
  • Portfolio and break-up acquisitions
  • Small scale Home Counties house building

Commercial

Info
Commercial
  • Value add London and regional city offices
  • Repurposing offices for alternative uses

Alternative

Info
Alternative
  • High yielding alternative assets
  • Management intensive businesses
  • High profit planning gain opportunities

We invest on a joint venture basis

Our investment thesis is to invest on a joint venture basis alongside developers or investors who are well capitalised, known to the team, have an exemplary track record and are leaders within their specialist sector.

By being open to opportunities and undertaking rigorous due diligence, we leverage the team’s experience and sector knowledge to provide attractive risk adjusted returns for our private investors.

Investment terms

The terms of our investment

Download Guidelines

Structure

  • Up to 90% of equity requirement
  • Preferred Equity position
  • Investment term of 1-3 years

Amount

  • £1,000,000 to £5,000,000

Partner requirements

  • Minimum track record of 2 similar schemes in the past 5 years
  • 10% equity contribution
  • Strong reputation and no adverse credit or media pages

Property tenure

  • Freehold & long leasehold (+125 years)

Locations

  • London, core regional cities, strong commuter towns, key growth areas and interesting or exciting new locations across England and Wales, Jersey and I.O.M also considered

Investment type

  • Commercial value-add, Prime Central London residential development, alternative asset turnarounds, loan book purchases

Partner equity

  • Counterparty must have hard cash equity invested in the opportunity alongside us and evidence of strong cash resources

Funding