The importance of heritage investment property management
Preston Rowe Paterson Sydney has, for some time, specialised in heritage investment property management. The investment management of heritage buildings requires empathy and a detailed understanding of the governing legislation namely the NSW Heritage Act of 1977.
Heritage properties are often the subject of Conservation Management Plans which require specific works and ongoing asset management plans. Ben Greenwood – Associate Director commented that Preston Rowe Paterson has developed a comprehensive understanding of heritage property asset management. He said that the buildings which typically comprise older construction techniques and finishes require intensive management and a rigorous approach to ongoing maintenance. He said it is important to have access to a pool of repair and maintenance contractors who also have the capability and aptitude to deal with heritage properties.
Repairs often need to be undertaken on a like for like heritage basis which in some instances can require formal approvals. This necessitates a heightened awareness of the issues in a project management sense. It can also be time consuming and to avoid unnecessary delays Preston Rowe Paterson have developed advanced programs for managing repairs and upgrade works.
Aside from the repair and maintenance management of heritage buildings Ben Greenwood also commented that management of the leases and the rental income side of the equation can be equally challenging. For example he commented that rental setting at lease commencement and upon rental review also requires a significant understanding of the nature of heritage buildings. Often rental reviews clauses need to be structured to accommodate the particular nature of the property and its heritage profile. Ben Greenwood commented that issues as fundamental as the measurement of buildings for heritage retail space, wherein heritage wall thicknesses don’t necessarily conform to the Property Council of Australia’s method of measurement on a gross lettable area basis (based on modern building construction) can require specific clauses in leases. He said that not only does the accommodation need to be measurement in a specific way however lease provisions also need to be mindful of the basis of measurement.
Any enquiries regarding heritage property and asset management should be directed to Ben Greenwood.