Pembroke

Question 1

Summarise your role?

Answer 1

• Sit within commercial central London team.
• primarily offices with some retails
• 30,000sqft to 170,000sqft
• yearly income is £2m to £8.5m
• clients : macquire, KW, Canary Wharf, national bank of Kuwait, threadneedle, orchard street, London metric

Question 2

Achievements?

Answer 2

• put a business plan together for Threadneedle Street
• what we could recover though sc, what would be a capex cost
• we brought in better receptionist, added in a gym and bike racks. We got an excellent BREEAAM rating through IBOS.
• within 6 months we reached full occupancy.
• fund manager sent me a thank you email later

Question 3

Why Pembroke?

Answer 3

-Sustainability and long term investment strategy. (Not a quick buck)
- ESG in my portfolio. gym, bike racks, solar, LG7 LED, BREEAM

• Well respected firm, somewhere I would want to progress to senior management level.

Question 4

Experience with CAPEX?

Answer 4

7 Birchin Lane
- worked closely with AM of a £4M refurb project.
- had to be on budget and not disrupt other tenants
- upgraded the HVAC and refurbished the first two floors.
- ended up letting property out to 2 blue chip tenants at £78psf with 3 months rent free on 10 years

Question 5

How do you get net yield?

Answer 5

Gross yield then subtract all operational costs

Question 6

Main drivers for commercial occupiers?

Answer 6

1. Location
2. Specification
3. Competitive SC
4. ESG (lower costs/conscious bias

Question 7

How do you increase value?

Answer 7

1. Strategic lease negotiation
   - length of term
   - rent reviews based on the asset class
   - 1954 act (inside or outside)
   - SC
2. Secure blue chip tenants
   - Starbucks tenant at Threadneedle Street on 10 year lease
3. Reduce costs enhance NOI
   - Birchin lane LED/smart meters/IBOS/Solar
4. CAPEX projects
   Worked with AM to put together a capex 4M project at cavendish Sq - plug and play
5. Fully occupied building.
   - incentive leasing (lease free period, fully spec’ed out plug and play)
6. Tenant diversification
7. Convert underperforming assets into different classes.
   - princes works. Underperforming asset due to the area. I recommended refurbing or seeking planning permission for a residential development to then sell to a developer.

Question 8

Tell me about a rent review you did?

Question 9

Tell me when you undertook a lease renewal?

Answer 9

Aurum ixworth house £375k / £45psf

• S26 - T request for new lease
• LL 2 months to respond
• asked the LL if they wanted them to stay and said limited grounds for them to get rid under s30
• market in Chelesa was moving slower and the tenant put forward a satisfactory increase
• agreed via a rent review memorandum

Question 10

Tell me about Pembroke?

Answer 10

• global real estate investment, development and management firm
• across 13 cities
• 10 Finsbury square, 25 Cannon Street and the lark
• Pembroke focus on sustainability and quality design opposed to a quick buck
• long term strategy

Question 11

What is your portfolio like?

Answer 11

OEG (150,000sqft / £55psft)
£9M (rent)
SC (£2.2m / 15psft)

West ferry (170,000sqft / £29psft)
SC (£1.2m)

Old Jewry (50,000sqft / (£60psft) / retail £36psft)
£2.8M rent

Question 12

What is a DCF?

Answer 12

It’s a valuation technique which estimates the viability of an asset based on its project cash flow

Question 13

What is the present value formula?

Answer 13

NOI / (1 + R) ^t