Strategies to Manage your Assets during COVID19
As the COVID19 situation deepens, our commitment at Viranda is the safety and wellbeing of our clients, team and families. To help contain the spread of COVID19, we will be working remotely until further notice.
“While this will not alter our service to you, it would be remiss if we did not keep you updated. Our thoughts are with you and your families. What has occurred on a global basis over the last four weeks is unprecedented.
As we navigate a strategic plan of action, we wanted to share a few messages of support and vouch for our 24/7 commitment to the integrity of your commercial property portfolio and our relationship with your tenants, suppliers, and wider network of accountants, solicitors and bankers.
On your behalf, we are scrutinising the daily changes in the market. With diligence (and timeliness), we will communicate a personalised response with you. Commercial buildings are typically stable in this regard, but we assure you – we are watching and reporting.
This is a unique experience over the 34 years Viranda has been operating, and as your advisor, I wanted to share three important messages with regards to management of your assets.” Andrew Guest, Viranda Chairman.
MANAGING YOUR ASSETS THROUGH COVID19
- Possible Tenant Response
Be prepared for an approach from some tenants seeking financial relief from their landlord e.g. short-term rent reduction, deferment of rental review, and so on. We are well-versed in dealing with this issue and considering what is best for your portfolio. Often, occupancy is more important than a vacancy. However, we will not approach tenants and offer landlord assistance, and each scenario is unique and must be addressed carefully. We will determine where relief is genuine vs opportunistic. Maintaining the integrity between you and your tenant/s is our focus and no decisions will be made without your approval. To find out more about our process in this situation, please contact us directly: https://www.viranda.co.nz/our-people/
- Cost of Funds
The wholesale rate and official cash rate in NZ have faced significant changes. Without question, a focus on the interest rate cost can be a very productive exercise with your bank. We are happy to work with you on optimising loan structures to gain the best possible outcome for you.
- Expanding Property Portfolios
While this strategy will not suit all clients, it would be remiss if we didn’t raise the policy of counter-cyclical buying and portfolio growth. It’s worth remembering that while the market may not be growing at the time of a purchase, it will undoubtedly grow in a short space of time. The market will certainly recover, and we are advocates of counter-cyclical buying. Buying at the peak of the market requires the market to continue to rise, buying halfway down, i.e. a counter-cyclical market can mean a greater rebound in growth and capital values in due course. Food for thought, and please reach out if you would like to discuss a strategy. We can connect very easily via audio or video calls.
Over 34 years, 750 buildings and a rapidly changing marketplace, Viranda remain a people business. Focused on strong relationships to help you succeed through commercial property, we have developed a robust plan to keep going. Ours is a prudent, yet ‘business as usual’ approach and you can expect the same diligent and personalised service from us. Working remotely, our team continue to work at 100% capacity with modern technology, and secure, cloud-based access to all information. Remember to make contact directly with us, we are here to help. https://www.viranda.co.nz/our-people/
Finally, we will keep you updated with relevant news and guidance as we transition through this period.
Together, we will get through this.
The team at Viranda.