K&C is a proactive investor and a plan will be prepared for each property that it acquires. The objective of each plan will be to maximise the property's long-term investment potential, given its location and the prevailing market circumstances. The plan will detail the capital spending required to optimise asset value and rental income, the property-management arrangements and the expected period of ownership and returns. K&C outsources property letting and day-to-day property management to independent advisers and agents. Where necessary, K&C will undertake general renovations and improve sites to increase asset value and yield, using external contractors. Value-adding initiatives could include:
Once a property is in a marketable condition, K&C will let the individual units to generate rental income. Where there are existing tenants in any acquired property, the Company will work with them and identify opportunities for increasing rental values by providing a better standard of accommodation.
The directors work closely with third-party property management companies to supervise the properties in the portfolio. As mentioned in our strategy, a higher yield can be achieved by employing expert local managing agents to source tenants, negotiate tenancies, collect rents and undertake any day-to-day maintenance. As well as reducing costs and providing greater flexibility, the directors use their negotiating power to appoint contractors and advisers at advantageous rates.
K&C's key objective is to build a strong brand reputation for offering superior management standards and quality of service across its portfolio. The directors believe that high-quality management is a key differentiator for K&C that enhances marketability to tenants, thereby underpinning the market value of the portfolio and, by extension, improving investment performance for shareholders.