Investment strategy
Alpha
Pyrenees Trust is a Guernsey registered closed-ended investment company
which invests predominantly in
French and, to a lesser extent, Spanish commercial real estate.
Alpha Real Capital, an FSA regulated property fund advisory business, is Investment Manager to the Company.
The Alpha Real Capital team has a strong long-term track record, established across a range of real estate ventures with an established operating platform in France and Spain.
Alpha Pyrenees Trust generates returns for investors through acquiring real estate with yields in excess of its cost of borrowings which has the potential for income growth and/or enhanced returns from active asset management.
The Company generally targets properties with low vacancy levels, solid tenant covenant strength and good re-letting potential.
Income growth
The Investment Manager seeks to secure income growth through a combination of inflation-indexed rents (which are a common feature in the French and Spanish commercial real estate markets) and an active letting and re-letting programme.
Active asset management
The Investment Manager will seek to enhance income and capital values where appropriate through the following:
- A space reconfiguration where under-utilised or inefficient areas within a building can be rearranged to provide more valuable space;
- A refurbishment and redevelopment where space can be modernised and the specification upgraded to create space which can command higher rents;
- A re-leasing, which has the potential to increase the rental income to an open market level, when this is in excess of the existing rent;
- A space creation by extending the building to meet tenant demand; and
- A change of use which can result in a higher value use for certain areas of a building or for entire properties
