We like versatile properties because they provide our investors with additional potential if the property needs to be re-developed or extended to suit future needs.

Over time, buildings need to be adapted to suit the changing requirements of tenants. Covid19 showed what can happen when change occurs quickly. We saw a fast adjustment in working arrangements as a large proportion of the workforce stopped working in commercial offices and began working from home. This had a knock-on effect to local shopping centres, which received a surge in spending, and boosted the need for more local services. The turnover of supermarket increased, as did that of specialty retailers and services such as childcare and medical and allied health centres.

Investment property owners needed to quickly assess the impact of this change on all categories of property and frequently were forced to scramble for solutions. Contactless access, for example, without the use of lift buttons and doors handles, became important. Some centres needed to be re-formatted for different tenants, to accommodate more support services such as childcare & personal services.

These changes are in addition to our medium-term challenges of providing tenants with buildings that are not-only energy efficient, but also have the potential of generating sustainable energy.

Investment properties that are land-rich, also, give co-investments more flexibility in being able to change a building to keep a tenant or securely re-tenant a site, which also increases the property’s value.