Drag

Real Estate Equity

Preferred Equity

Our approach

We invest private capital on a joint venture basis alongside best in class real estate operators.

Our Real Estate Equity strategy deploys our private capital into a small number of Preferred Equity opportunities that offer attractive risk-adjusted returns over short to medium periods.

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

Investments range between £500,000 to £5,000,000.

Our preference is to invest into prime residential refurbishment opportunities, however we consider all assets and locations.


Sectors

Investing across three core real estate sectors

Our capital is invested into residential, commercial and alternative real estate such as self storage and parking. These three specialist sectors are outlined below.

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 private capital on a joint venture basis alongside best in class operators.

Our investment thesis is to invest preferred equity with well capitalised developers and operators, who are known to the team, have an exemplary track record and are leaders within their specialist sector.

By undertaking rigorous due diligence, we leverage the team’s real estate experience and market knowledge to provide attractive risk adjusted returns for our private investors.

Investment terms

Preferred Equity

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

Further information