Better property performance begins with the right intervention.
A property is always assessed in its present state. The investment decision also requires a view of the work that may follow.
Senoia Capital considers how an asset can be strengthened after investment. We look beyond acquisition to the position of the property during the holding period. Physical condition, operating requirements and energy performance may each influence the work required at an asset. The proposed response must suit the building and the wider investment case.
Environmental measures form one part of this work. They sit alongside commercial repositioning and operational planning. The objective is to establish what is appropriate for each individual asset.
An asset’s current use may not reflect its potential. Its physical condition may also limit how it is regarded within its market.
Senoia Capital considers whether a property can support a defined repositioning plan. This assessment begins with the asset’s present role and the practical changes that may be required.
The plan may involve targeted capital works. It may involve reconsidering how space is used. In some cases, the appropriate action may be limited to improving the property’s current operating position.
A repositioning decision must have a reasoned basis. The intended outcome must be relevant to the market in which the asset operates.
Areas of assessment
The property’s current position in its local market.
The physical condition of the building.
The suitability of the asset for its existing use.
The practical scope of proposed capital works.
The basis for the intended commercial position.
The operating profile of a property can influence the quality of an investment. Senoia Capital considers the requirements that shape an asset’s day-to-day position. This may include the condition of building systems or the information available to support informed management.
The purpose is to establish whether there is a practical route to better performance. Any action must have a defined role within the asset plan.
Some buildings require closer attention to maintenance planning. Other properties may benefit from better visibility over operating data. The appropriate response depends on the asset and its intended use.
Areas of assessment
The condition of relevant building systems.
The requirements for planned maintenance.
The availability of operational information.
The relationship between operating expenditure and asset use.
The scope for a more effective management approach.
Environmental quality is considered where it has a meaningful connection to the property.
Energy demand may affect the operating position of an asset. It may also influence the capital that will be required during the holding period. These matters can be relevant at the point of acquisition or once an asset plan is underway.
Senoia Capital reviews whether an environmental measure has a credible role within the investment case. The assessment is commercial and asset-specific.
We do not assume that every building requires the same response. A proposed intervention must be suited to the property and justified by its expected role in the asset plan.
Explore the Sustainable Assets FundOn-site solar generation may be relevant where the physical setting of a property supports it.
Senoia Capital considers whether a proposed installation can serve a defined purpose within the asset plan. This includes the relationship between the site and its energy use.
A solar project must be reviewed in the context of the building. Its suitability is not determined by a general preference for renewable technology.
Relevant considerations
The physical characteristics of the site.
The expected relationship to the asset’s energy demand.
The practical requirements of installation.
The conditions that apply in the relevant location.
The role of the system within the investment plan.
A building may have scope for a more efficient operating profile. The appropriate measure depends on its existing systems and the way the property is used.
Senoia Capital may consider efficiency works where the evidence supports a reasoned case. The investment in a measure must be proportionate to the position of the asset.
We do not treat environmental spending as an end in itself. Any proposed work must support the wider plan for the property.
Areas that may be reviewed
Heating and cooling systems.
Lighting requirements.
Building controls.
Energy use within common areas.
Water use where it is relevant to the asset.
Technology can provide useful insight into the operation of a property. It can also support management decisions once an investment is underway.
Senoia Capital considers systems where they provide information that is relevant to the asset. This may include a better understanding of energy use or earlier visibility of a building-system issue.
The value of a technology-led measure lies in its usefulness. A system is not adopted merely because it is current or widely marketed.
Technology may support
Monitoring energy use.
Reviewing building-system performance.
Identifying maintenance requirements.
Informing future capital planning.
Supporting ongoing asset oversight.
The review begins with the property in its existing condition. Senoia Capital considers the information available on physical performance and operating requirements. The aim is to identify whether there is a material issue or a supportable basis for improvement.
The proposed measure is considered against the physical characteristics of the building. A solution may be suitable for one asset but inappropriate for another. The property itself determines whether the work should proceed to further assessment.
Senoia Capital assesses the expected role of the measure within the investment case. The proposed expenditure must be proportionate to the position of the asset. It must also have a defined purpose during the expected holding period.
Where an intervention is appropriate, it is incorporated into the asset plan. The requirements of delivery are considered before work begins. The plan is shaped by the relevant fund mandate and the circumstances of the property.
The asset plan is revisited as the investment develops. A measure may require adjustment as the position of the property changes. We consider this in the context of the original investment rationale.
