Bluecastle’s
Core Principles.

Improve returns through smart “value-added” investment strategies rather than financial leverage.

Most investment managers in the real estate sector see financial leverage as a way of boosting their fees, reducing the amount of capital they have to raise, and making their investment returns look better than they really are. Basically, they are lazy. Meanwhile, they are taking perilous risks with their investors’ capital, and handing control over to a dispassionate, faceless lender. At Bluecastle we believe in “Value Leverage” instead. Value leverage is about delivering superior risk-adjusted returns through intelligent structuring, identifying high value investment opportunities, and adding value throughout the investment process. It is a fundamental principle of Bluecastle’s investment philosophy that we do not use financial leverage to boost returns at any stage of the investment cycle.

Be the very best version of ourselves and always perform at our full potential.

Most large organisations encourage mediocrity. Smart, dynamic, talented people become frustrated due to hierarchical decision-making structures, and bureaucratic processes. They often quit to set up their own shops or join more entrepreneurial companies. The incompetent team members eventually get found out and are culled during the regular cost-cutting rounds. The result is a long-term workforce of middle ground, mediocre performers. At Bluecastle we only employ the best top quartile performers, and we empower them with the right support and tools to perform at their full potential. We encourage a culture where even the most ambitious, entrepreneurial individuals can flourish, achieve their lifetime goals, and live the life they love while they are building the life of their dreams.

Take responsibility for and control every aspect of our business and investments.

If you do not control a critical function, by definition your business or project is out of control. At Bluecastle we believe that we can only outsource tasks and processes which we can monitor, reconcile and control. We never ever outsource “value-added” functions, decision-making, or responsibility for investment outcomes. At Bluecastle we own every outcome and treat every penny we manage on behalf of our investors as if it were our own. We must control every aspect of everything we do. That’s why when it comes to operating our buildings we will employ all of the front of house staff ourselves, and take responsibility for any value added activities such as lease negotiations and renewals. It may not be profitable for us to do so, but it creates better communities, stickier tenants, higher rents and consequently adds huge capital value to our underlying asset portfolio, and therefore delivers better outcomes for our investors.

Help people to live better lives.

Bluecastle is in the business of creating homes and communities. However, we are acutely aware that they will only be available to certain segments of society, namely those on regular incomes who can meet the affordability targets set for eligible residents. In 2024 around 300,000 people across the UK are living without homes. One of Bluecastle’s core missions is to take some of the value created by it’s BTR portfolio and divert it to help solve the curse of homelessness in the UK. To that end, a percentage of all rent collected from our residents is donated to support local homelessness initiatives. Where possible, Bluecastle will also seek to introduce affordable rented units into every scheme. This will not only broaden the socio-economic mix of our communities but it will also help alleviate the housing crisis by making homes available at more affordable rents.

Make whole of lifecycle investments with a long term horizon.

We don’t want to be seen to be bashing the private equity sector, but one of the big problems is the short term nature of their investment strategies. It’s basically a case of get in, fatten it up, and get out as fast as you can before it all comes crashing down around their ears. In the context of BTR this often means an over emphasis on student numbers to fill schemes quickly at artificially high rents. It also means choosing lower cost materials which won’t stand the test of time. At Bluecastle we intend to develop, own and operate our portfolio of BTR properties on behalf of our investors forever. We are 100% privately owned and have no intention of selling out. We make decisions for the long-term, based upon the asset’s whole of life-cycle. It also means we will be building our communities slowly and in a balanced way making sure that a wide segment of society and age ranges are represented. A luxury which only long term investment horizons can afford.