Stenham Property - An Introduction
3 May 2011
Stenham Property commenced business in 1994. We offer investors access to international commercial real estate opportunities either through discretionary closed-ended real estate funds or the ability to co-invest alongside these in direct syndications.
We currently have in excess of £1.5bn of property under management.
Our average IRR on all realised investments exceeds 20%.
Our investor base exceeds 2,000 investors. These investors are drawn primarily from independent financial advisors with whom we have built close working relationships. These intermediaries utilise Stenham Property as an avenue for their high net worth clients to access real estate as an asset class in their portfolios; or to provide their clients with direct co-investment opportunities.
We have an experienced team of approximately 30 people. In addition to real estate expertise, a core area of focus is reliable and regular reporting and accounting to investors. Investors receive a confidential password and log-in to the Stenham Property website. Detailed reports and financial accounts are published every six months.
All of our real estate investments have been structured as closed-ended vehicles with no rights of redemption. We view real estate as a relatively illiquid asset class which needs to be held in a stable vehicle for the full duration of the business plan attached to the asset. In general, most opportunities require a five year outlook even though we have often realised investments sooner than that.
From 1994 to 2004 we focused exclusively on real estate in the United Kingdom. From 2005 we switched to opportunities primarily in Germany. The reason for the switch was that the UK had been in growth mode for the past ten years, whereas Germany had been stagnant. The yields on property had fallen in the UK to levels where borrowing costs were no longer cashflow positive. In Germany yields were high relative to borrowing costs and rents and capital values were coming off a low base. We re-entered the UK market in 2009 and have made a significant number of purchases in 2009 and 2010. Our core areas of expertise and depth continue to be Germany and the UK. We have also acquired properties in Switzerland and Japan.
Peregrine Holdings Limited owns approximately 51% of Stenham Property. The balance is owned by management and other shareholders. Peregrine is a diversified financial services business which is listed on the Johannesburg Stock Exchange, with assets under management in excess of US$10 billion.