Our Strategy
“Our Create, Manage, Own framework, complements our overall Investment Strategy and Investment Policy and articulates what we do in a transparent way for all our stakeholders to understand.
Ultimately, Argosy is about Creating a sustainable business and incremental value, Managing the business for all our stakeholders and Owning the right assets in the right locations.
It’s a simple message and very clear way forward.”
MIKE SMITH, CHAIRMAN
View a PDF version of Our Strategy at Work.
Investment Strategy
Our strategy is to build our portfolio based around a mix of Core and Value Add properties. Core properties are well-constructed, well-located assets we intend to hold long term (>10 years). Value Add properties are those which, through skilled asset management, we believe can increase future earnings and provide capital growth.
The key features of Core properties are:
- Strong long term demand (well-located and generic).
- A preferred leasing profile that provides for rental growth of at least CPI.
- Excellent structural integrity with minimal capital expenditure required on maintenance.
Value Add properties are also well-located with the potential for strong long term tenant demand. These properties are available for near to medium term re-positioning or development with a view to moving them into the Core category.
Core properties will make up 75% to 90% of the portfolio by value. Core properties currently represent approximately 80% of the portfolio and Value Add 12%. Approximately 8% of the portfolio will be divested as market conditions allow.
Investment Policy
Where will we buy?
45-55% Industrial
30-40% Office
10-20% Large Format Retail
We will target "off-market" acquisitions and avoid competitive processes. Target Value Add properties where we can leverage internal expertise within overall Core/Value Add targets. Target contiguous properties with potential.
We will focus on good quality Office, Industrial and Large Format Retail. Concentrate on Auckland (65-75%) and Wellington (20-30%). Regional North Island (including the Golden Triangle between Auckland, Tauranga and Hamilton) or South Island tenant-driven only (<10%). We do not invest in leasehold or international properties.
Value Parameters
- Greater than $10 million unless strategically imperative ($6 million for Industrial) ✓
- No more than 10% of overall portfolio value ✓
Due Diligence
- Apply Argosy's due diligence checklist ✓
- Structural integrity > 70% of National Building Standard (unless this represents a Value Add opportunity) ✓
Development
- Developments only for tenants who provide strategic value to Argosy ✓
- Joint ventures will be undertaken only where the counterparty is of sufficient financial standing to carry their share of risk ✓
Other
- Third party management of external portfolios where complementary ✓
View a PDF version of our Investment Policy.