Supply and demand fundamentals drive rental growth.
We own and acquire buildings that work for our customers. These are in secure urban locations, with a regular layout and offer value for money. This enables us to maximise demand and convert this into higher occupancy and rents.
MLI offers a unique opportunity to invest in an asset class where there is an ongoing structural shift in demand driven by the growth of e-commerce and the adoption of technology, while supply is severely constrained by high build costs and a lack of available land across towns and cities in the UK. We believe that this imbalance of demand and supply will lead to sustained rental growth over a long period of time.
Our unique cloud-based, mobile-friendly and highly scalable Industrials Hive operating platform is operated by our dedicated team.
We have built a scalable and sustainable operating platform for our business to operate more efficiently. It is flexible in meeting our customer’s daily needs, while enabling our business to grow at a reduced marginal cost.
We deliver a quality experience for our customers. This experience is driven by making the process of leasing space simple and frictionless.
We provide space that matters to our customers, employees and communities.
We have a unique opportunity to promote sustainable working practices to over 1,500 SMEs servicing 104 communities across the UK.
The MLI asset class has good green credentials, which can unlock opportunities in the short term, with the correct management and focus.
We aim to be a responsible, sustainable business that achieves its financial targets while balancing the needs of, and creating value for, all of our stakeholders.
We have made significant strides in this area with our Smart Lease, which has drastically reduced the complexity, time taken and cost of leasing, on over half of our transactions. The objective for the financial year ending 31 March 2023 is to roll this concept out across more complex and larger lettings by standardising and limiting the scope of traditional leases.
With the transition largely complete and Industrials Hive functional, Industrials is wellpositioned to scale the business to achieve economies of scale. However, any growth needs to be predicated on a strong investment pipeline of potential opportunities. We have recently increased capacity within our investment team to support this
A key to quality customer service is managing the touch points with customers through their life cycle with Industrials. At the end of the financial year ended 2022, we internalised all property accounting and billing activities with a view to generate efficiency savings and deliver enhanced customer service in the management of customer contracts. The next stage of this process is to internalise our facilities and property management functions, which will allow us to deliver a better-quality service with regards to building maintenance and management, while also generating efficiencies through greater alignment in our workforce. Our new Head of Facilities Management started in March 2022 with a view to in-sourcing this work during the second half of the financial year ending 2023.
Having built an operating business over the last four years, the focus is now upon optimising how the organisation functions on a day-to-day basis. This year, we are undertaking a process mapping exercise which will streamline and improve the most important and repetitive activities, while helping to identify and implement opportunities for technology to improve them.
Bringing awareness to all of our stakeholders around thinking sustainably, is an important facilitator of change. During the year ending 31 March 2023, we will be looking to identify key targets to focus this thinking and prioritise our actions, particularly around environmental initiatives. We will continue to embed sustainable thinking into all our business activities from our engagement and procurement, to our capital expenditure programmes in order to implement solutions that deliver value and growth opportunities for all our stakeholders.
Business culture requires constant effort and improvement if it is going to support the wider ambitions of the business. We recently redefined our core cultural goals, and have identified a number of initiatives for the financial year ending 31 March 2023 in order to deliver upon them, including providing a working environment that reflects and promotes our culture.