Manager

Manager - Roger Skeldon & Stephen Daniels Manager Since - 18/05/2017

Roger Skeldon and Stephen Daniels are very experienced property fund managers, both having worked on the PAIF since its launch in 2017. 

Roger has been in fund management since 2006, focusing on long income strategies investing across both traditional and alternative sectors. He has been at TIME Investments for many years and the funds Roger is responsible for have deployed over £800m in long income property, including over £200m in the social infrastructure sector.

Stephen is one of the founding partners of TIME and also manages TIME:UK Infrastructure Income fund.  He has many years’ experience in finance, fund management and investing UK Smaller Companies.

Fund Objective

Please click on the 'Fund Data' button above. 

Investment Process

Unlike a traditional UK commercial property fund, the managers are looking at securing the long-term income stream from the lower risk end of property, i.e. long leases, by investing in buildings which are integral and inherent to the business or social organisation. This leads to the managers looking for a different sort of tenant, such as care home providers, medical centres, social supported living and assisted living providers.

The fund origination team is responsible for sourcing suitable assets for consideration by the fund manager. If the manager believes that the assets are suitable and attractive for the fund, then they will be proposed to the investment committee.  Acquisition opportunities are typically sourced through one of the following routes:

1. Direct targeting of owner operators/developers – through the creation of new long leases and ground rents over newly developed, existing or to be acquired portfolios
2. Through corporate advisers – the creation of new ground rents over either existing or to be acquired portfolios
3. Through property agents

The fund manager and then the investment committee judge potential acquisitions against both the objective outputs of the model and the ability to meet the investment restrictions of the fund, and make a subjective assessment of the quality and price of the asset.

The manager will focus on the quality of the asset (and its tenant/operator) and specifically the sustainability of the sector, business plan and model. The manager will look at various other aspects and carry out due diligence with third party advisers, to ensure full title, check environmental and building issues and to get an independent valuation of the asset.

The rent is the most important factor for returns. The managers are careful to set this at a low and sustainable rate and build in reviews at regular intervals. The majority of reviews are on an annual basis, and these will be mostly inflation linked, but with some degree of capping (usually at 4% to 5%) to ensure that the rents are affordable over a 20 year time horizon.

The Long Income fund operates at the low-risk end of the property market and capital values are not as important as the value of the income streams that the properties produce, therefore the drivers of the returns remain unaffected by sentiment to the broader commercial property market.

Responsible Process

This fund is not an impact fund but does offer a long-term investment return from providing social benefit. Due to the underlying themes the fund invests in, many traditional property sectors are naturally omitted. The underlying fund aims to provide identifiable social benefits through modern, purpose-built accommodation to maximise the social benefit and to target investments supporting ESG investor principles.

For ESG considerations, attention is given to the social impacts of the investments that are selected, which include community impacts, access to quality education, gender equality, good health & wellbeing, and reducing poverty and inequality.  This is done by concentrating the fund’s investments in social property sectors such as medical centres and assisted living properties.  Each of these sectors are not driven by general economic drivers and so provide useful diversification. The allocation to each sector, and other sectors which are not currently allocated to, are constantly reviewed, via a sector analysis. Environmental aspects are not the primary consideration of the managers, however the buildings within the portfolio tend to be highly energy efficient, purpose-built properties. 

An independent company, The Good Economy assesses the Time Investments investment process with regards to the delivery and additionality of impact.

Our Opinion

This is a UK focused property fund, providing investors with exposure to a growing alternative property sector supported by long dated reliable cash flows with a high degree of inflation protection. The fund invests in properties and leases them to tenants over the long term often with visible 15 -30-year income streams, each with a social dimension. The underlying revenue is either directly or indirectly public sector funded, or from financially and operationally strong private operators. The income return makes up the greater proportion of the total return and as this is based on lower volatility long leases. 

The properties within the fund have their purpose linked to the UN sustainable development goals.