In a crowded market, “good” is easy to find; investment-grade is not. At ABCAN we focus on durable income backed by sensible risk controls. Here’s the seven-point checklist we apply before progressing to full underwriting.
1) Location Quality (Macro → Micro)
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City and sub-market momentum: employment base, transport, regeneration pipeline.
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Micro factors: visibility, footfall/traffic counts, neighboring occupiers, noise and access.
2) Building Fundamentals
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Functional floorplates, modern services, EPC/energy profile, compliance history.
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Low obsolescence risk: can it adapt from single to multi-let, office to flexible workspace, etc.?
3) Tenant & Covenant Strength
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Balance sheet health, trading history, sector outlook.
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Concentration check: no single tenant >40–50% of income unless covenant is blue-chip.
4) Lease Profile & WAULT
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Target WAULT aligned to strategy (stabilised vs. value-add).
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Review break clauses, indexation mechanics, and repairing obligations.
5) Yield vs. Risk
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Entry yield must compensate for vacancy/CapEx and rate environment.
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Stress test exit cap rates; model downside scenarios, not just base case.
6) CapEx Roadmap
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5-year plan for compliance, ESG upgrades, and cosmetic refresh.
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Prioritise works that improve rentability and operational efficiency.
7) ESG & Regulatory Readiness
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Path to improved EPC/energy intensity.
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Accessibility, life-safety, and local planning considerations.
The ABCAN screen in action
Only assets that score “pass” across all seven dimensions proceed to technical due-diligence. That discipline keeps our portfolio income-focused and resilient—for tenants, directors and investors alike.
