A new portfolio approach releases trapped capital
Client Stories
The Story
A large faith-based organisation found itself at the cross-roads, despite having one of the largest property portfolios in the country it struggled to generate a market return on its property holdings thereby suffering land-rich and cash-poor syndrome.
Allocation of capital to historic property investments was limiting the organisation’s ability to be agile in re-deploying funds to new opportunities. This situation was aggravated by the fast moving non-for profit world where everchanging government priorities require service entities to rapidly pivot their capabilities.
Building an optimized property portfolio
Barcley analysis quantified the hidden holding cost of what were largely opaque investments made over the course of 50 years of operations. We laid out a methodology for evaluating the economic and contribution of each existing property as well as an approach for measuring the opportunity associated with re-deploying a particular asset.
Together with the executive team we build a process for portfolio review which focused heavily on stakeholder engagement. We created innovative development models like “consideration in kind” designed to help the organisation quickly transition old assets to new uses without an outsized capital requirement.
This strategy is continuing through its implementation phase and is expected to generate between 50 – 100M of bottom-line impact for the organisation.
