ABC business editor Ian Verrender writes with zero and negative rates, the time value of money no longer applies. The trade-off between risk and reward becomes obsolete. Speculation takes over from investment.
This view is supported by Philip Lowe – Reserve Bank Governor , recently stating ‘ historically they (investors) want to be compensated for taking on risk….. at the moment though, despite the uncertainty, credit spreads are low…” Read the full article here.
DMA Partners advisory has experienced an increase in enquiry from fund managers and investors with potentially vulnerable assets. In the current very low growth economy, stabilising and securing tenant income streams is key to creating a sustainable rental revenue for the landlord. A key component of this strategy involves re-positioning an asset by improving convenience, experience and amenity.
At DMA Partners we don’t just look at the development opportunities we also consider
- Customer experience and convenience
- Major tenant leasing and negotiation
- Operational efficiency
- Lease covenants and tenancy mix
All of which will affect asset performance and valuation.
Whether buying, selling or holding assets in today’s market, DMA Development Advisory can assess and implement a re-positioning or re-purposing strategy for your asset to ensure it is resilient.
Watch the video below to find out more about our Development Advisory service.