THESIS | The Drawbridge

Our Thesis

The Drawbridge was founded on a clear, contrarian conviction that inflation would prove far more persistent than widely expected leading to higher rates for longer.

At a time when the Bank of England and other major institutions described inflation as “transitory,” we took the view that accelerating de-globalisation leading to disrupted supply chains and sustained fiscal expansion would lead to higher inflation for longer leading to a generational buying opportunity.

Having exited prime Central London in 2013 avoiding debilitating tax changes, entering into the ‘private-affordable’ development space benefiting from 95% government financing of new build apartments we exited in 2018-2021 as The Drawbrige began to underpin our strategy since late 2021. The firm has had a successful track record of reading the flows of money supply long before others.

We focus on high-yielding residential assets, where demand is driven by necessity rather than economic cycles. In contrast, commercial real estate faces structural headwinds: remote working, increasing employee rights and AI-driven disruption are reducing demand for traditional office space while capital markets have made residential debt more accessible and often cheaper.

At the same time inflation is no longer episodic. Rather than adjusting every five years, costs are resetting annually favouring assets where income can respond dynamically. Residential rental income provides this flexibility.

We believe the UK’s evolving regulatory environment further strengthens the case for residential. Increased complexity in housing regulation is raising barriers to entry and favouring experienced, specialist operators removing immature capital. This will lead to greater institutionalisation of the sector and a premium on professional management.

Our strategy is designed for resilience.

By prioritising strong income from day one, disciplined underwriting and assets in fundamentally undersupplied markets where replacement cost exceeds acquisition price significantly our strategy survives and thrives while the same environment crushes others.

A wealth preservation strategy with wealth creation results.