Our Business Model is more than just a way of doing business. It describes our appetite for risk, our attitude and culture, so we can measure predictable outcomes.
Apogee Business Model
There are 3 main areas in which Apogee are focused on delivering; Foundation Investments, Predictable developments & Speculative developments/Investments
Foundation; Our foundation is made up of multiple secure single-lets and HMO investments across London and the home counties that return predictable and reliable income on a monthly basis. They return relatively modest yields of between 4-8% and are leveraged no more than 50% LTV. This forms the bedrock of our Business Model. We operate a private portfolio that is under management with our sister company 'Landlord Rescue'. We also work with Private Investors to manage their portfolios, either under management with 'Landlord Rescue' or within a joint venture where we create small portfolios with our investors.
Predictable; Construction is our background and we thoroughly enjoy the rewarding process of development and creating homes for homeowners or tenants. We appraise and deliver developments that are attractive, deliverable and profitable. Our target market in today's climate is focused purely on the first-time buyer sector that can take advantage of SDLT relief and Help to Buy if the exit is to sell. Alternatively, we focus on the student/young professional sector where there are low voids and secure rents if the exit is to hold. The profit on cost return for any development needs to reach 30% after a full appraisal so that any alternative exit can be triggered if necessary.
Speculative; Occasionally, when the market conditions or Investment position is favourable, we look to invest in growing and emerging strategies. These are not always in construction or development of properties; we are currently invested into a 'Prop Tech' / 'Fin Tech' business which will transform the way homebuyers search and acquire property for habitation or investment. When the conditions are right, we also look at developments that may have a slightly higher risk profile but have the potential for much higher gains. The returns for any speculative investment need to show the potential for doubling the initial seed Capital or more.
Below is an example of our search criteria for both our Foundation Investments and Predictable Developments.