XYNO Properties is an international property investment company, investing into commercial real estate in Switzerland, The United Kingdom and the USA. Follow our blog for updates on the international property market, related financial news and updates on our products
Thursday, 5 July 2012
Wednesday, 16 May 2012
XYNO PROPERTIES
Press Release
16 May 2012
Xyno Properties announced today an investment into the Corporate Headquarter Building of the BMW Group in Switzerland. The building is Located within the BMW Corporate Campus in Dielsdorf, Canton of Zurich, Switzerland w7ithin a 15 minute drive to both the Zurich International Airport & downtown Zurich and is classified as Class “A” Commercial Office Space. The Property houses the Financial Services Group and senior management of BMW Group Switzerland.
The physical characteristics of The Property are a total of 6,072 square meters / 65,334 square feet of office space within a 3 story building, constructed of contemporary design with innovative use of stone, steel and glass. The office space is flexible and adaptive to a wide range of alternative uses. The land is comprised of Parcel Number 1822 containing a total of 5,160 square meters / 55,542 square feet / 1.27 acres zoned commercial/industrial. Typically, Swiss commercial properties provide little parking. The BMW Property however, provides 76 parking spaces beneath the building and 20 above ground spaces.
The municipality of Dielsdorf is located in the northwestern sector of the Swiss canton of Zurich and is the capital of the district of Dielsdorf. Dielsdorf is the Swiss corporate headquarters for a number of other large international companies such as Chromos, Fuji Film and Honeywell. Although the municipality is comprised of only 5,506 residents, Dielsdorf provides a workplace for over 2,000 employees. Dielsdorf is well connected to the extensive Swiss public transportation system by rail and is accessible to four major bus lines. The major highway going north out of Zurich (Route 17) passes through Dielsdorf. Freeway access to Autobahn N1, the main
Swiss artery is 5 miles south, and access to Autobahn N51 is 4 miles northeast. Zurich is 13 miles south and the Zurich International Airport (Kloten) is 11 miles to the east.
The company believes that the investment will create value in it's portfolio and will enhance the current income and growth potential.
Interested parties can contact Xyno Properties at: Onyx Worldwide AG onyxagnewsletter@onyx.co.im
More information about Xyno Properties at: http://xyno-properties.com
Tuesday, 15 May 2012
Real estate opportunities in Africa
02 May 2012
Africa’s collective GDP in 2020 is expected to reach $2.6 trillion, with $1.4 trillion in consumer spending and 128 million African households that have discretionary income. Africa’s collective GDP in 2020 is expected to reach $2.6 trillion, $1.4 trillion consumer spending with 128 million African households with discretionary income. This is according to a report entitled: Lions on the Move – The progress and potential of African economies by McKinsey Global Institute. This is according to a report entitled: Lions on the Move – The progress and potential of African economies by McKinsey Global Institute. The report reveals that Africa’s future growth will be supported by external trends such as the global race for commodities, Africa’s increased access to international capital and its ability to forge new types of economic partnerships with foreign investors. Furthermore, the long-term growth of Africa’s economy will be lifted by internal social and demographic trends, particularly Africa’s growing labour force and the related rise of the middle class consumers. McKinsey notes that for companies, the report analysis suggests that four groups of industries together will be worth $2.6 trillion in annual revenue by 2020. These are consumer-facing industries (such as retail, telecommunications and banking), infrastructure related industries, agriculture and resources. Meanwhile, the Annual Broll Property Report notes that Sub-Saharan Africa continues to experience an increase in demand for real estate solutions in a very complex structure of emerging markets. Construction in these locations is booming and some South African retailers and property developers who have been eyeing these growth trends have made an early entry into these real estate markets. In Nigeria, thanks to rapid urbanisation, consumerism and a growing middle-class, demand for retail space has increased during the past 12 months. The backlog of formal upmarket retail developments has brought new proposals and it is estimated that 250 000 square metres of Gross Lettable Area of retail space will come on stream during the next 24 months. There is demand for office space with new developments mostly comprising A Grade offices. South African and international retailers are reportedly continuing to enter the retail market in Ghana with a basic line shop rental for shopping centres commanding rentals priced between US$35 to US$65 per square metre per month. Accra Mall measuring 20 000 square metres in Ghana is the only premier shopping centre in Ghana attracting 7 million shoppers a year. New office developments in Ghana are leaning towards A Grade type prime locations and these are expected to have basic rentals of between US$35 and US$40 per square on completion. In Namibia, the supply of retail space has declined while demand sales have remained stable. Demand for space varies between 150 square metres to 500 square metres and leases escalate at 8 percent annually, according to Broll. At the Gauteng Chapter Breakfast of the South African Council of Shopping Centres on Leasing in Africa, Dave Bennie, Africa Retail Leasing and Consulting for Broll said it is much easier to do business in Africa where you do not need a visa and there is ease of travelling to that particular country. Namibia and Zambia were cited as relatively easy to operate in while Mauritius was said to be overtraded. Construction in Sub-Saharan Africa is booming and some South African retailers and property developers who have been eyeing these growth trends have made an early entry into these real estate markets. Bennie points out that Nairobi in Kenya has good infrastructure, lots of new modern residential apartments and the area is poised for growth. He says retailers wanting to trade outside of South Africa need to assess the market and partner with locals as well if they are to succeed. On Nigeria, he says Lagos is a tough place to do business in as property and land generally cost more than they would in New York City in the US. As a result, he explains that property rentals are high and landlords require rentals to be paid for a year in advance. This expensive location will become a mega-city in Africa, he says. While signing deals is important, Bennie urges South African businesses wanting to trade outside borders to ensure that they check their health, things such as getting a Yellow Fever Vaccine are very important. “More importantly, doing business in Africa should be seen as an adventure, one needs a strong heart and will and lots of patience,” says Bennie. South African retailer Woolworths aims to open 16 stores in African countries this year taking the total number of stores to 60 in the current financial year. The new stores will be larger than current ones and the retailer expects to be trading in 104 stores on the African continent (outside South Africa) by June 2014. Woolworths is currently trading in 12 countries. Click here to read more about the Woolworths expansion into other African countries and here about real estate investments in Africa. Glenn Gilzean, Woolworths Group director for retail operations, says Woolworths have the advantage of having traded on the continent for many years and is well placed to expand its footprint. “We are very mindful of the competition for limited retail space and the need to deliver a compelling shopping experience to different customers in a range of territories.” However, Gilzean says finding the ideal entrepreneurs to “set up shop with” (as they enter into joint ventures with partners in African countries) remains a challenge to doing business in other African countries. Asked what he thought was fuelling retail growth in Africa, he says he believes the Group’s Pan African expansion will deliver a meaningful profit contribution. A number of factors have spurred the interest in African countries including the growth of consumer spending, which now accounts for more than 60 percent of the African GDP and is expected to increase with the growth of the upper and middle income groups. South African retailer Woolworths aims to open 16 stores in African countries this year taking the total number of stores to 60 in the current financial year. “The appetite for formal retail is another factor and we are well resourced to meet the needs of the aspirant African consumer,” says Gilzean. At a GIBS Forum in Illovo, Johannesburg on Taking Advantage of Opportunities in Africa, Jason Krause, managing director of International SOS South Africa says there is no one size fits all approach to minimising risk in African economies. He notes that lack of awareness and preparedness of what happens in other African economic markets remains a risk factor for many businesses wanting to trade outside their own countries. While opportunities are seemingly endless in Africa, the continent is also the most risky location to do business in. These include infectious diseases, opportunistic crimes and other health issues. Krause says malaria is seen as a huge threat followed by road accidents, but notes that the type of industry one is in determines the risks. He says for those wishing to jump on the Africa economic opportunities bandwagon, it is important to increase awareness among shareholders regarding the chosen country to do business in Africa and protecting employees heading these businesses is necessary to taking advantages in Africa. “It’s all about knowing the risk, preparation and managing the risk posed by doing business in that country.” Dave Butler, managing director, Southern and East Africa Control Risks, says Africa has become an investment destination of choice and with its young working population, the continent is poised for further growth. Butler says business opportunities exist in sectors including infrastructure, consumerism and telecommunications, and South Africa and its businesses are well placed to take advantage of these opportunities. He explains that businesses face risks including government change, which signals risks to long-term investors, contract negotiations, red tape and corruption. Silke writes that with 900 million consumers on the continent, the problems and pitfalls in doing business in Africa are quickly being outweighed by the promise of a market clamouring for goods and services. It is, however, important that one does research before investing outside of their known economies. Planning and practise all form part of preparing to enter uncharted territory and taking advantages of economic opportunities in Africa. Butler says if one is thinking of expanding into Africa, they should: 1. Know exactly where they are going – understand the country and its politics. 2. Know your partner, ask questions such as who is behind the company and what companies' or partners’ original source of wealth is. Do a thorough due diligence. 3. Protect your reputation against allegations of corruption and bribery by remaining ethical in all business dealings. Daniel Silke, political analyst and author of the book entitled 'Tracking the Future – Top trends that will shape South Africa and the world', writes that in a world looking for the next investment frontier, the African continent stands out as the next major contributor to global growth. Africa will soon be courted by global corporates from more mature developed markets as the scramble for opportunities in Africa continues. Silke writes that with 900 million consumers on the continent, the problems and pitfalls of doing business in Africa are quickly being outweighed by the promise of a market clamouring for goods and services. He adds that Africa stands on the cusp of a critical opportunity and is well positioned in a world less dominated by the West and more open to input and influence from the developing world. – Denise Mhlang
02 May 2012
Africa’s collective GDP in 2020 is expected to reach $2.6 trillion, with $1.4 trillion in consumer spending and 128 million African households that have discretionary income. Africa’s collective GDP in 2020 is expected to reach $2.6 trillion, $1.4 trillion consumer spending with 128 million African households with discretionary income. This is according to a report entitled: Lions on the Move – The progress and potential of African economies by McKinsey Global Institute. This is according to a report entitled: Lions on the Move – The progress and potential of African economies by McKinsey Global Institute. The report reveals that Africa’s future growth will be supported by external trends such as the global race for commodities, Africa’s increased access to international capital and its ability to forge new types of economic partnerships with foreign investors. Furthermore, the long-term growth of Africa’s economy will be lifted by internal social and demographic trends, particularly Africa’s growing labour force and the related rise of the middle class consumers. McKinsey notes that for companies, the report analysis suggests that four groups of industries together will be worth $2.6 trillion in annual revenue by 2020. These are consumer-facing industries (such as retail, telecommunications and banking), infrastructure related industries, agriculture and resources. Meanwhile, the Annual Broll Property Report notes that Sub-Saharan Africa continues to experience an increase in demand for real estate solutions in a very complex structure of emerging markets. Construction in these locations is booming and some South African retailers and property developers who have been eyeing these growth trends have made an early entry into these real estate markets. In Nigeria, thanks to rapid urbanisation, consumerism and a growing middle-class, demand for retail space has increased during the past 12 months. The backlog of formal upmarket retail developments has brought new proposals and it is estimated that 250 000 square metres of Gross Lettable Area of retail space will come on stream during the next 24 months. There is demand for office space with new developments mostly comprising A Grade offices. South African and international retailers are reportedly continuing to enter the retail market in Ghana with a basic line shop rental for shopping centres commanding rentals priced between US$35 to US$65 per square metre per month. Accra Mall measuring 20 000 square metres in Ghana is the only premier shopping centre in Ghana attracting 7 million shoppers a year. New office developments in Ghana are leaning towards A Grade type prime locations and these are expected to have basic rentals of between US$35 and US$40 per square on completion. In Namibia, the supply of retail space has declined while demand sales have remained stable. Demand for space varies between 150 square metres to 500 square metres and leases escalate at 8 percent annually, according to Broll. At the Gauteng Chapter Breakfast of the South African Council of Shopping Centres on Leasing in Africa, Dave Bennie, Africa Retail Leasing and Consulting for Broll said it is much easier to do business in Africa where you do not need a visa and there is ease of travelling to that particular country. Namibia and Zambia were cited as relatively easy to operate in while Mauritius was said to be overtraded. Construction in Sub-Saharan Africa is booming and some South African retailers and property developers who have been eyeing these growth trends have made an early entry into these real estate markets. Bennie points out that Nairobi in Kenya has good infrastructure, lots of new modern residential apartments and the area is poised for growth. He says retailers wanting to trade outside of South Africa need to assess the market and partner with locals as well if they are to succeed. On Nigeria, he says Lagos is a tough place to do business in as property and land generally cost more than they would in New York City in the US. As a result, he explains that property rentals are high and landlords require rentals to be paid for a year in advance. This expensive location will become a mega-city in Africa, he says. While signing deals is important, Bennie urges South African businesses wanting to trade outside borders to ensure that they check their health, things such as getting a Yellow Fever Vaccine are very important. “More importantly, doing business in Africa should be seen as an adventure, one needs a strong heart and will and lots of patience,” says Bennie. South African retailer Woolworths aims to open 16 stores in African countries this year taking the total number of stores to 60 in the current financial year. The new stores will be larger than current ones and the retailer expects to be trading in 104 stores on the African continent (outside South Africa) by June 2014. Woolworths is currently trading in 12 countries. Click here to read more about the Woolworths expansion into other African countries and here about real estate investments in Africa. Glenn Gilzean, Woolworths Group director for retail operations, says Woolworths have the advantage of having traded on the continent for many years and is well placed to expand its footprint. “We are very mindful of the competition for limited retail space and the need to deliver a compelling shopping experience to different customers in a range of territories.” However, Gilzean says finding the ideal entrepreneurs to “set up shop with” (as they enter into joint ventures with partners in African countries) remains a challenge to doing business in other African countries. Asked what he thought was fuelling retail growth in Africa, he says he believes the Group’s Pan African expansion will deliver a meaningful profit contribution. A number of factors have spurred the interest in African countries including the growth of consumer spending, which now accounts for more than 60 percent of the African GDP and is expected to increase with the growth of the upper and middle income groups. South African retailer Woolworths aims to open 16 stores in African countries this year taking the total number of stores to 60 in the current financial year. “The appetite for formal retail is another factor and we are well resourced to meet the needs of the aspirant African consumer,” says Gilzean. At a GIBS Forum in Illovo, Johannesburg on Taking Advantage of Opportunities in Africa, Jason Krause, managing director of International SOS South Africa says there is no one size fits all approach to minimising risk in African economies. He notes that lack of awareness and preparedness of what happens in other African economic markets remains a risk factor for many businesses wanting to trade outside their own countries. While opportunities are seemingly endless in Africa, the continent is also the most risky location to do business in. These include infectious diseases, opportunistic crimes and other health issues. Krause says malaria is seen as a huge threat followed by road accidents, but notes that the type of industry one is in determines the risks. He says for those wishing to jump on the Africa economic opportunities bandwagon, it is important to increase awareness among shareholders regarding the chosen country to do business in Africa and protecting employees heading these businesses is necessary to taking advantages in Africa. “It’s all about knowing the risk, preparation and managing the risk posed by doing business in that country.” Dave Butler, managing director, Southern and East Africa Control Risks, says Africa has become an investment destination of choice and with its young working population, the continent is poised for further growth. Butler says business opportunities exist in sectors including infrastructure, consumerism and telecommunications, and South Africa and its businesses are well placed to take advantage of these opportunities. He explains that businesses face risks including government change, which signals risks to long-term investors, contract negotiations, red tape and corruption. Silke writes that with 900 million consumers on the continent, the problems and pitfalls in doing business in Africa are quickly being outweighed by the promise of a market clamouring for goods and services. It is, however, important that one does research before investing outside of their known economies. Planning and practise all form part of preparing to enter uncharted territory and taking advantages of economic opportunities in Africa. Butler says if one is thinking of expanding into Africa, they should: 1. Know exactly where they are going – understand the country and its politics. 2. Know your partner, ask questions such as who is behind the company and what companies' or partners’ original source of wealth is. Do a thorough due diligence. 3. Protect your reputation against allegations of corruption and bribery by remaining ethical in all business dealings. Daniel Silke, political analyst and author of the book entitled 'Tracking the Future – Top trends that will shape South Africa and the world', writes that in a world looking for the next investment frontier, the African continent stands out as the next major contributor to global growth. Africa will soon be courted by global corporates from more mature developed markets as the scramble for opportunities in Africa continues. Silke writes that with 900 million consumers on the continent, the problems and pitfalls of doing business in Africa are quickly being outweighed by the promise of a market clamouring for goods and services. He adds that Africa stands on the cusp of a critical opportunity and is well positioned in a world less dominated by the West and more open to input and influence from the developing world. – Denise Mhlang
Monday, 7 May 2012
Midwest, New Orleans Area Counties Top U.S. Population Gains
Scott Kauffman Posted by Scott Kauffman 05/07/12 8:00 AM EST Author Bio | Archives Related Stories: 9 1 1Email0
New-Orleans-Louisiana.jpg (Washington D.C.) -- Of the 10 fastest growing counties in the nation between April 1, 2010, and July 1, 2011, two were in the upper Midwest and two were in Louisiana, according to some recent data from the U.S. Census Bureau. The two Midwestern counties that made the top-ten list were Williams, N.D., which ranked third, and Dallas, Iowa, which was seventh. Meanwhile, the presence of Louisiana counties St. Bernard (No. 2) and Orleans (No. 9) among the 10 fastest-growing counties in America provides evidence that the New Orleans area continues to rebound from the devastating effects of Hurricane Katrina. Another fast-growing county was in the Pacific Northwest: Franklin, Wash., which was fifth. Two county equivalents in Virginia, the independent cities of Manassas Park and Fredericksburg, checked in at fourth and sixth, respectively. Rounding out the top 10 were Charlton, Ga. (first); Hoke, N.C. (eighth) and Williamson, Texas (10th). None of these 10 counties was among the 10 fastest growing from 2000 to 2010. The top 10 numeric gainers were all in the Sun Belt, with four in Texas: Harris, Dallas, Bexar, and Tarrant. Another four were in Southern California: Los Angeles, Riverside, Orange and San Diego. Rounding out the list were Maricopa, Ariz. and Miami-Dade, Fla. Following are some other interesting findings from the recent Census Bureau look at county growth: Among the 50 fastest-growing counties from 2010 to 2011, 38 were in the South, with the remaining 12 split equally between the Midwest and West. Texas contained more of these counties than any other state, with 12. Georgia was next, with nine, followed by Virginia (seven), and North Dakota and North Carolina (tied with three apiece). Texas was home to eight of the 25 counties with the highest numerical gains and California was second with six. All but two were in the South or West: Kings, N.Y. (Brooklyn) and Cook, Ill. (Chicago). The three fastest-growing counties from 2000 to 2010 were Kendall, Ill.; Pinal, Ariz.; and Flagler, Fla. Between 2010 and 2011, they ranked 236th, 171st and 207th, respectively. Los Angeles was the most populous county, with 9.9 million residents on July 1, 2011
Scott Kauffman Posted by Scott Kauffman 05/07/12 8:00 AM EST Author Bio | Archives Related Stories: 9 1 1Email0
New-Orleans-Louisiana.jpg (Washington D.C.) -- Of the 10 fastest growing counties in the nation between April 1, 2010, and July 1, 2011, two were in the upper Midwest and two were in Louisiana, according to some recent data from the U.S. Census Bureau. The two Midwestern counties that made the top-ten list were Williams, N.D., which ranked third, and Dallas, Iowa, which was seventh. Meanwhile, the presence of Louisiana counties St. Bernard (No. 2) and Orleans (No. 9) among the 10 fastest-growing counties in America provides evidence that the New Orleans area continues to rebound from the devastating effects of Hurricane Katrina. Another fast-growing county was in the Pacific Northwest: Franklin, Wash., which was fifth. Two county equivalents in Virginia, the independent cities of Manassas Park and Fredericksburg, checked in at fourth and sixth, respectively. Rounding out the top 10 were Charlton, Ga. (first); Hoke, N.C. (eighth) and Williamson, Texas (10th). None of these 10 counties was among the 10 fastest growing from 2000 to 2010. The top 10 numeric gainers were all in the Sun Belt, with four in Texas: Harris, Dallas, Bexar, and Tarrant. Another four were in Southern California: Los Angeles, Riverside, Orange and San Diego. Rounding out the list were Maricopa, Ariz. and Miami-Dade, Fla. Following are some other interesting findings from the recent Census Bureau look at county growth: Among the 50 fastest-growing counties from 2010 to 2011, 38 were in the South, with the remaining 12 split equally between the Midwest and West. Texas contained more of these counties than any other state, with 12. Georgia was next, with nine, followed by Virginia (seven), and North Dakota and North Carolina (tied with three apiece). Texas was home to eight of the 25 counties with the highest numerical gains and California was second with six. All but two were in the South or West: Kings, N.Y. (Brooklyn) and Cook, Ill. (Chicago). The three fastest-growing counties from 2000 to 2010 were Kendall, Ill.; Pinal, Ariz.; and Flagler, Fla. Between 2010 and 2011, they ranked 236th, 171st and 207th, respectively. Los Angeles was the most populous county, with 9.9 million residents on July 1, 2011
Friday, 4 May 2012
Swiss real estate will become the new gold
Posted by Izabella Kaminska
Here’s an interesting view on the consequences of the SNB’s move from Societe Generale’s Sebastien Galy. First of all, as others have noted too, Galy believes the decision to defend a 1.20 level floor against the euro is credible this time, since the environment is very different. Not only is there a political will to intervene, measures like CPI — which are dropping — justify an expansion of the monetary base. As Galy notes: The SNB moved to set a floor at 1.20 in the EUR/CHF. Front end vols in EUR/CHF have started to collapse and should continue to do so especially downside vols. In 2006/2007 when EUR/CHF was trading in a range, vols were far lower than now . This intervention move is distinct from 2010 when the SNB was reacting to deleveraging of peripherals and was eventually forced to surrender and suffer from a public backlash. Now, it already has the political support to move ahead as well as a clear economic imperative so that the SNB’s move is credible. The CPI yoy inflation dropped more than expected. This is even as the well publicized price cuts by retailers such as Migros, Coop and Manor are yet to show up in the data. Though there’s another potential side-effect — one that’s likely to make Swiss real estate a major beneficiary, notes Galy: The presumption is that the intervention will be largely unsterilized eading to an expansion of moneys in Switzerland and extremely low mortgages. It also means that real estate in Switzerland is going to be the new gold. There is still an open window before the government starts to close it by regulating the mortgage market, presumably by increasing the risk weight on Swiss mortgage holdings. he extremely well informed article from a Basel newspaper two weeks ago had mentioned that regulation of the mortgage market was being considered by the government in addition to measures to help the Swiss export and tourism industry. Meanwhile, from a bond perspective: The net amount of investment flow into Switzerland is initially unclear as from a fixed income perspective, it is attractive for a Swiss Fixed Income investor to sell the 1M bond at home and invest in German or French Bunds to gain roughly 1%. In the future, every new wave of risk aversion is likely to translate into more negative rates in Switzerland. The issue will then be whether the SNB penalizes Swiss bank s who arbitrage these rates via deposits at the SNB. Presumably, it is in their interest of having negative rates to encourage investments outside of Switzerland. Which means you can expect the Swiss shopping spree to take place both domestically and abroad.
Posted by Izabella Kaminska
Here’s an interesting view on the consequences of the SNB’s move from Societe Generale’s Sebastien Galy. First of all, as others have noted too, Galy believes the decision to defend a 1.20 level floor against the euro is credible this time, since the environment is very different. Not only is there a political will to intervene, measures like CPI — which are dropping — justify an expansion of the monetary base. As Galy notes: The SNB moved to set a floor at 1.20 in the EUR/CHF. Front end vols in EUR/CHF have started to collapse and should continue to do so especially downside vols. In 2006/2007 when EUR/CHF was trading in a range, vols were far lower than now . This intervention move is distinct from 2010 when the SNB was reacting to deleveraging of peripherals and was eventually forced to surrender and suffer from a public backlash. Now, it already has the political support to move ahead as well as a clear economic imperative so that the SNB’s move is credible. The CPI yoy inflation dropped more than expected. This is even as the well publicized price cuts by retailers such as Migros, Coop and Manor are yet to show up in the data. Though there’s another potential side-effect — one that’s likely to make Swiss real estate a major beneficiary, notes Galy: The presumption is that the intervention will be largely unsterilized eading to an expansion of moneys in Switzerland and extremely low mortgages. It also means that real estate in Switzerland is going to be the new gold. There is still an open window before the government starts to close it by regulating the mortgage market, presumably by increasing the risk weight on Swiss mortgage holdings. he extremely well informed article from a Basel newspaper two weeks ago had mentioned that regulation of the mortgage market was being considered by the government in addition to measures to help the Swiss export and tourism industry. Meanwhile, from a bond perspective: The net amount of investment flow into Switzerland is initially unclear as from a fixed income perspective, it is attractive for a Swiss Fixed Income investor to sell the 1M bond at home and invest in German or French Bunds to gain roughly 1%. In the future, every new wave of risk aversion is likely to translate into more negative rates in Switzerland. The issue will then be whether the SNB penalizes Swiss bank s who arbitrage these rates via deposits at the SNB. Presumably, it is in their interest of having negative rates to encourage investments outside of Switzerland. Which means you can expect the Swiss shopping spree to take place both domestically and abroad.
Thursday, 3 May 2012
Property prices in Auckland hit new high
Asking prices for Auckland homes hit a new all time high in April as the New Zealand city's real estate market experiences a severe shortage of supply
Data released in the NZ Property Report, a monthly report of housing market activity compiled by Realestate.co.nz, showed that the average asking price for Auckland homes for sale increased 2% from March taking them to an all time high of $568,820, the third high in eight months.
Alistair Helm, chief executive officer of Realestate.co.nz, said that the surge was understandable due to the increased pressure that has been placed on that market by strong sales that have not been matched by numbers of new listings.
‘The number of new listings is virtually identical to April last year, but what is different this year is that demand has remained high, with year on year sales up more than 20%,’ said Helm, adding that the Auckland market is still massively undersupplied resulting in a ‘chronic shortage’.
Prices in Auckland have remained at the top end of the range for the past 12 months, according to Peter Thompson, managing director of Barfoot & Thompson.
‘In April property held on to the solid prices achieved in March, with the average sales price for the month being $568,018, only $3,000 lower than the average price in March. It shows that March’s big jump in prices over those for February was no one off spike,’ he explained.
What did change between April and March was the number of homes sold. Sales numbers fell back to 750. This is consistent with the number of homes sold in April last year, but is 39.8% lower than in March. New listings for the month at 1,266 were also solid, but were down 17.6 % on those for March.
‘At month’s end we had only 4,621 homes on our books throughout Auckland, the lowest number in four months and 17.2% lower than at the same time last year. This underlines the extent to which there is a lack of choice available to potential home buyers,’ added Thompson.
Prices and sales volume tend to ease in autumn but he expects the buoyant market to continue. ‘Given the high level of buyer interest in the market and the low level of choice, prices are likely to hold firm through May. For three of the four months of this year, the average sales price for the month has been higher than the corresponding month last year,’ he said.
However, around the country the dominant trend was an easing of asking prices with 11 of the 19 regions covered by Realestate.co.nz reporting falls, ranging from just 0.2% in Gisborne to a massive 12.8% in Wiararapa. There were five regions where the asking price showed a fall of greater than 5%; Waikato, Nelson, Southland, Marlborough as well as Wairarapa.
In contrast there were some strong growth in asking price with Hawkes Bay and West Coast reporting prices up 14.1% and 5.1% respectively.
Two regions, Auckland and Hawkes Bay reported new record levels of asking prices, in the case of the Hawkes Bay the prior high was last seen way back in 2007 whereas Auckland’s prior high was only two months ago.
Monday, 30 April 2012
Another Blow for Property Lending
Yet another blow for lending for Commercial Property in the UK..
National Australia Bank is to abandon commercial property lending in the UK and cut 1,400 jobs,
Sunday, 29 April 2012
Friday, 27 April 2012
9.8% total return for Commercial Real Estate in 2011
Commercial Property has delivered a return of 9.8% globally in 2011, Please read article below for the full story...
Global commercial property delivered a 9.8% total return in 2011; Irish returns in Q1 2012 were at 0.6%
Global commercial property delivered a 9.8% total return in 2011; Irish returns in Q1 2012 were at 0.6%
Wednesday, 25 April 2012
Swiss property market maintains its winning streak
Please see the latest news on the Swiss Property market below..
Swiss property market maintains its winning streak
Swiss property market maintains its winning streak
Monday, 23 April 2012
UK Update
The total value of UK commercial property investment transactions
in Q1 2012 was £7.53 billion, down 27% on the same period for 2011. Central
London office investment broke £4 billion for the quarter – the highest
figure since the financial crisis. Overseas investors spent £3 billion
during the first quarter – representing 42% of all purchases. Retail
investment fell from £3.15 billion in Q1 2011 to £1.42 billion in the latest
quarter
- Hedge funds are increasingly looking outside the traditional
locations of Mayfair and St James’s for London offices, according to new
research by Jones Lang LaSalle, but the West End still remains their
preferred location. JLL research published this week, called “Hedging the
Risk”, said the location preferences of hedge funds had “expanded”, and that
they would look further afield to north of Oxford Street – pushing prime
rents in the area to record-breaking levels. The report said hedge funds,
which have traditionally been comfortable paying rents of £100/sq ft or more
because of their high margins and low staff numbers, were now also
considering prime buildings in Knightsbridge, as well central London “Trophy
Buildings” such as the Heron Tower and The Shard. Nonetheless, the report
confirmed that the West End was still the number one destination for hedge
funds in Europe, and said rents would increase in the area, primarily due to
the lack of space available. Andrew Barnes, director in Jones Lang LaSalle’s
West End agency team, said: “There has been a definite change in where hedge
fund managers will consider looking, with some now prepared to consider
alternative locations to keep occupational costs in check, particularly if
the building has a high profile. However, for some, Mayfair will always
remain the premier choice despite costs.”
- Barratt Homes, Taylor Wimpey and the London Development Agency
have been given the green light for the final phase of their 780-apartment
scheme next to London’s Thames Barrier. At a Newham Council meeting on
Tuesday night the developers were given planning consent for the fifth phase
of the Barrier Park East development, also known as Waterside Park. The
fifth phase comprises 192,000 sq ft of residential space across 193 flats as
well as 4,250 sq ft of commercial space and a 1,550 sq ft crèche. Consent
was granted following issues previously raised by the Newham council over
layout, appearance, scale access and landscaping. A report before the
council on Tuesday said the council’s concerns had been alleviated. Barrier
Park East, located in Newham’s Royal Docks, was first given outline planning
approval in December 2009. It comprises 780 homes as well as retail, leisure
and community uses. Occupation of homes in the first phase began in December
last year and the second phase, Connaught House, is complete and occupied.
The third phase, Meadow View, will be available for occupation at the end of
this year and fully complete in February 2013. The whole scheme is due to be
completed by March 2016.
- William Hill confident as profit rises 19%: (WILLIAM HILL IS A
TENNANT IN OUR ALDERSGATE PROPERTY INVESTMENT IN LONDON - NICO) William Hill
said that it was “confident” of its prospects for the year ahead, as it
announced that operating profits rose 19 per cent in the first quarter,
fuelled by high margins in its retail business and the growing popularity of
online betting. With smartphone use on the rise, the company’s Sportsbook
mobile app was downloaded 190,000 times from the Apple App Store during the
quarter, bringing William Hill around 57,000 new customers, and helping its
online division to post £38.3m in operating profits, up 29 per cent on the
year before. Ralph Topping, chief executive, said that he was “pleased” with
the results. “Our investments in marketing and innovations continue to
deliver benefits, with our Sportsbook exceeding £50m in turnover in a single
week for the first time during the quarter and mobile turnover reaching
almost £11m in a single week,” he said, adding that the success of the
company’s online operations highlighted the importance of its multi-channel
offering. Operating profits from the group’s retail operations were up 8 per
cent, as gross win margins rose from 18.1 to 19.4 per cent, thanks in part
to a string of bookmaker-friendly football results. Analysts at Investec
said they were upgrading their earnings forecasts for William Hill following
the announcement, and described its margin performance as “exceptional”.
“The 220 bps margin outperformance versus Ladbrokes is eye-catching (19.4%
vs 17.2%) and, we think, reflects a higher proportion of football wagering
at William Hill (higher underlying and first quarter seasonal margin than
horseracing) and a superior trading operation,” they wrote. Ladbrokes, a
rival UK-based bookmaker, said on Thursday that its operating profits rose
by 3.9 per cent in the first quarter. Shares in the company, which have
risen 35 per cent this year, were up 3.19 per cent at 275.3p in early
morning trading in London, a level not seen since 2008.
- IMF sees banks deleveraging by $2.6tn: A drastic contraction of
European bank balance sheets during the next 18 months could jeopardise
financial stability and economic growth in Europe and beyond, according to
forecasts from the International Monetary Fund. In its Global Financial
Stability Report, published on Wednesday, the fund warned that European
banks looked set to shrink their balance sheets by $2.6tn (€2tn) over that
period. Unless officials improved their policy response, the IMF said,
European banks would dump almost 7 per cent of their assets by the end of
next year. The IMF expects most of the deleveraging to come from sales of
securities and non-core assets. However, it also sees credit supply
shrinking by 1.7 per cent as banks rein in lending to businesses and
households hitting the broader economy. After examining the efforts of the
continent’s 58 largest banks to boost their capital ratios, shed
unprofitable businesses and cut their reliance on wholesale funding, the
fund’s analysts predicted the deleveraging process would be more severe than
previously anticipated. While acknowledging that balance sheets needed to
shrink after the financial excess seen in the run-up to the crisis, the IMF
warned that the risk of a “synchronised and large-scale deleveraging” could
spark financial instability and hit economic growth. “The highly uncertain
European policy backdrop is driving banks to keep shrinking, even if we
avoided a disorderly and abrupt crunch,” warns Huw van Steenis, banking
analyst at Morgan Stanley. The fund said better policies – such as a
consideration of more easing by the European Central Bank and further
structural reforms, as well as progress on bank restructuring and resolution
– would prompt a smaller, 6 per cent contraction in banks’ balance sheets,
which would boost euro-area growth by 0.6 per cent. IMF assessments assume
the bulk of deleveraging will occur through the form of asset sales, rather
than a drop-off in lending. Andrea Enria, chair of the European Banking
Authority, said earlier this month less than 1 per cent of the deleveraging
represented true cuts to lending. The IMF also vindicates the EBA’s
controversial call for banks to hold at least 9 per cent capital by finding
evidence that higher equity buffers and capital ratios boosted banks’ share
prices. “Banks with higher tier one capital outperformed other sample banks
during the European sovereign debt crisis,” it said, adding that a 1
percentage point increase in a bank’s capital ratio during the past two
years added 0.5 per cent to monthly stock returns. Elsewhere in the report,
the fund warned of the risks presented by an ever-decreasing stock of “safe”
assets. “The number of sovereigns whose debt is considered safe is declining
– taking potentially $9tn in safe assets out of the market by 2016, which is
roughly 16 per cent of the projected total.” It expects this trend to
inflate prices for the few remaining assets deemed to be safe.
- Tesco announced it will reduce new net space growth by 38% and
spend £1bn revamping its existing estate in a preliminary results statement
released this morning. (TESCO IS ALSO A TENNANT IN OUR ALDERSGATE PROPERTY
INVESTMENT IN LONDON AND WAS ALSO IN OUR SHEFFIELD RETAIL ACQUISITION WHICH
NETTED INVESTORS AN IRR OF 101% - NICO) The supermarket giant reported a
1.6% rise in underlying pre-tax profits to £3.9bn for the year to February
25, 2012. Group sales went up 7.4% to £72bn. A store refurbishment programme
will start this year as part of a £1bn commitment to improve the Tesco
shopping experience for customers. The programme will start with 430 stores,
which will see warmer colours, better lighting and a stronger emphasis on
fresh food. This includes around £400m of capital investment and will focus
on service, store formats, pricing, range and rolling out click and collect.
However, the company said overall group capital expenditure would be lower
this financial year, down from £3.8bn in 2011/12 to £3.3bn in 2012/13,
mainly driven by the reduced new store opening programme in the UK. Profits
from the UK business were down 1% for the period to £2.5bn, as customers
continued to be squeezed by falling incomes and high petrol prices. Chief
executive Philip Clarke admitted that investing more into the UK store
estate would affect profits in the short term. “These are decisive steps and
this cost investment – as we have already announced – will constrain our
near-term profitability. We are also focusing our lower overall capital
expenditure more into our existing stores and in building our online
businesses. We are adapting our UK capital plans so that we have the right
store base for the future, to underpin the returns that create long term
value for our shareholders. Together these steps are the right things to do
both to improve the shopping trip for customers and to secure a return to
profitable growth in the UK.” Tesco issued its first profit warning in 20
years in January after suffering a disappointing Christmas sales period.
- Jamie Oliver will open his fifth Union Jacks restaurant in
London’s Covent Garden, it was announced today. The restaurant, which
debuted at Central St Giles in Midtown last year, will occupy a 3,500 sq ft
unit at the Market Building in Covent garden’s piazza. It will occupy two
floors in the north hall of the building, providing seating for 158 diners.
Oliver said: “The Piazza at Covent Garden is one of the most buzzing parts
of the city, with Londoners and tourists visiting all day and night. So this
Union Jacks needs to be special and it will be – the restaurant will look
fantastic.” Beverley Churchill, brand director for Covent Garden, said:
“Over the past few months Covent Garden has become London’s new foodie hot
spot attracting fantastic new concept restaurants such as Jamie’s Union
Jacks and international icons including Balthazar.”
- Swiss watchmaker Breitling has agreed a deal to open its first
standalone store on New Bond Street at what is expected to be a record rent
of £1m. The retailer will move into a store at 130 New Bond Street after US
retailer Diesel surrendered its lease to the private landlord. The
watchmaker is expected to open 6,000 sq ft store in the new year and is
understood to have agreed a deal with the landlord to return the first floor
of the building for office use. It is understood that Diesel, which has
traded on Bond Street since 2006, is now looking to open a 15,000 sq ft
store on Regent Street.
- Regional property services firms are to be given a much-needed
boost to fee income through the chance to advise the government on its
£280bn estate. The government is reviewing its prized Estates Professional
Services framework, which is worth millions in fees to the UK’s biggest
property services firms, as part of the prime minister’s drive to award more
government contracts to small and medium-sized businesses. The framework is
to be retendered in September and officials at the Government Procurement
Service have held a series of meetings with incumbent firms to discuss the
shake-up. GVA, DTZ, Drivers Jonas Deloitte, Jones Lang LaSalle, Colliers,
Lambert Smith Hampton, Knight Frank and BNP Paribas are the incumbents,
- although GVA, DTZ and Drivers Jonas Deloitte are thought to carry
out more than 80% of the work. A Cabinet Office spokeswoman said: “The
current framework is due to expire in September, so the time is right to
review it and make sure that it is delivering the expertise the public
sector needs at the right cost, as well as supporting innovation and
simplifying processes. “The Government Procurement Service is now reviewing
the framework and engaging with the property industry as part of this
process. The government has been clear that opening up its contracts to SMEs
is a priority.” GVA carries out around 46% of the work and boasts the
coveted position as sole property adviser to the Ministry of Defence. It is
understood to earn more than £6m a year in fees from the framework. Among
the options being mooted is a split of advisory and transaction work, so
less substantial transactions can be pooled for which regional companies can
pitch. Other options are to split frameworks into smaller pieces, divided by
region, or maintain a core roster of eight to 10 companies, which will be
forced to abide by a threshold of jobs that they must subcontract to smaller
firms. The Estates Professional Services framework is a list of
“pre-approved providers” public sector bodies use to manage their estate.
Bodies ranging from central government departments and local councils to the
emergency services and the NHS use the framework to procure work, tasking
firms with cutting the estate’s £25bn-a-year running costs. “Anyone who
isn’t losing sleep about failing to get on a framework of this size at the
moment is crazy,” said one agent. Prime minister David Cameron announced a
series of measures to help small firms compete for billions of pounds of
government contracts in February, and said the aim was to give businesses
greater access to the bidding process by eliminating “excessive bureaucracy
and petty regulation”. Long-term departmental contracts, such as the
Ministry of Justice’s five-year north of England property management
contract, which GVA won a year ago, will be unaffected, and the new rules
are to be applied following retendering in September.
- UK private sector improves in March. This week saw the release of
the March Purchasing Managers’ Indices (PMI) - a key survey of private
sector activity. The UK’s services, manufacturing and construction sectors
all showed improvement. The manufacturing sector gave the highest reading
since last May and the construction sector rose to the highest level since
October 2007. Most importantly the services PMI rose from 53.8 to 55.3 (a
reading above 50 signals expansion), which is in line with the historical
average and points to a decent pace of expansion within the sector. The
surveys suggest that the UK economy rounded off Q1 on a positive note and
economic contraction over the quarter is increasingly unlikely.
- Weak output figures are at odds with improving survey data. UK
manufacturing output fell 1.0%m/m in February after a 0.3%m/m drop in
January. This is the largest fall in 10 months. In annual terms production
fell 1.4% compared to February 2011. Production data can be volatile and are
frequently revised, but it’s odd that it differs so much from the PMI. The
PMI is more forward looking so hopefully the improved data translates into a
better manufacturing output figure in March.
in Q1 2012 was £7.53 billion, down 27% on the same period for 2011. Central
London office investment broke £4 billion for the quarter – the highest
figure since the financial crisis. Overseas investors spent £3 billion
during the first quarter – representing 42% of all purchases. Retail
investment fell from £3.15 billion in Q1 2011 to £1.42 billion in the latest
quarter
- Hedge funds are increasingly looking outside the traditional
locations of Mayfair and St James’s for London offices, according to new
research by Jones Lang LaSalle, but the West End still remains their
preferred location. JLL research published this week, called “Hedging the
Risk”, said the location preferences of hedge funds had “expanded”, and that
they would look further afield to north of Oxford Street – pushing prime
rents in the area to record-breaking levels. The report said hedge funds,
which have traditionally been comfortable paying rents of £100/sq ft or more
because of their high margins and low staff numbers, were now also
considering prime buildings in Knightsbridge, as well central London “Trophy
Buildings” such as the Heron Tower and The Shard. Nonetheless, the report
confirmed that the West End was still the number one destination for hedge
funds in Europe, and said rents would increase in the area, primarily due to
the lack of space available. Andrew Barnes, director in Jones Lang LaSalle’s
West End agency team, said: “There has been a definite change in where hedge
fund managers will consider looking, with some now prepared to consider
alternative locations to keep occupational costs in check, particularly if
the building has a high profile. However, for some, Mayfair will always
remain the premier choice despite costs.”
- Barratt Homes, Taylor Wimpey and the London Development Agency
have been given the green light for the final phase of their 780-apartment
scheme next to London’s Thames Barrier. At a Newham Council meeting on
Tuesday night the developers were given planning consent for the fifth phase
of the Barrier Park East development, also known as Waterside Park. The
fifth phase comprises 192,000 sq ft of residential space across 193 flats as
well as 4,250 sq ft of commercial space and a 1,550 sq ft crèche. Consent
was granted following issues previously raised by the Newham council over
layout, appearance, scale access and landscaping. A report before the
council on Tuesday said the council’s concerns had been alleviated. Barrier
Park East, located in Newham’s Royal Docks, was first given outline planning
approval in December 2009. It comprises 780 homes as well as retail, leisure
and community uses. Occupation of homes in the first phase began in December
last year and the second phase, Connaught House, is complete and occupied.
The third phase, Meadow View, will be available for occupation at the end of
this year and fully complete in February 2013. The whole scheme is due to be
completed by March 2016.
- William Hill confident as profit rises 19%: (WILLIAM HILL IS A
TENNANT IN OUR ALDERSGATE PROPERTY INVESTMENT IN LONDON - NICO) William Hill
said that it was “confident” of its prospects for the year ahead, as it
announced that operating profits rose 19 per cent in the first quarter,
fuelled by high margins in its retail business and the growing popularity of
online betting. With smartphone use on the rise, the company’s Sportsbook
mobile app was downloaded 190,000 times from the Apple App Store during the
quarter, bringing William Hill around 57,000 new customers, and helping its
online division to post £38.3m in operating profits, up 29 per cent on the
year before. Ralph Topping, chief executive, said that he was “pleased” with
the results. “Our investments in marketing and innovations continue to
deliver benefits, with our Sportsbook exceeding £50m in turnover in a single
week for the first time during the quarter and mobile turnover reaching
almost £11m in a single week,” he said, adding that the success of the
company’s online operations highlighted the importance of its multi-channel
offering. Operating profits from the group’s retail operations were up 8 per
cent, as gross win margins rose from 18.1 to 19.4 per cent, thanks in part
to a string of bookmaker-friendly football results. Analysts at Investec
said they were upgrading their earnings forecasts for William Hill following
the announcement, and described its margin performance as “exceptional”.
“The 220 bps margin outperformance versus Ladbrokes is eye-catching (19.4%
vs 17.2%) and, we think, reflects a higher proportion of football wagering
at William Hill (higher underlying and first quarter seasonal margin than
horseracing) and a superior trading operation,” they wrote. Ladbrokes, a
rival UK-based bookmaker, said on Thursday that its operating profits rose
by 3.9 per cent in the first quarter. Shares in the company, which have
risen 35 per cent this year, were up 3.19 per cent at 275.3p in early
morning trading in London, a level not seen since 2008.
- IMF sees banks deleveraging by $2.6tn: A drastic contraction of
European bank balance sheets during the next 18 months could jeopardise
financial stability and economic growth in Europe and beyond, according to
forecasts from the International Monetary Fund. In its Global Financial
Stability Report, published on Wednesday, the fund warned that European
banks looked set to shrink their balance sheets by $2.6tn (€2tn) over that
period. Unless officials improved their policy response, the IMF said,
European banks would dump almost 7 per cent of their assets by the end of
next year. The IMF expects most of the deleveraging to come from sales of
securities and non-core assets. However, it also sees credit supply
shrinking by 1.7 per cent as banks rein in lending to businesses and
households hitting the broader economy. After examining the efforts of the
continent’s 58 largest banks to boost their capital ratios, shed
unprofitable businesses and cut their reliance on wholesale funding, the
fund’s analysts predicted the deleveraging process would be more severe than
previously anticipated. While acknowledging that balance sheets needed to
shrink after the financial excess seen in the run-up to the crisis, the IMF
warned that the risk of a “synchronised and large-scale deleveraging” could
spark financial instability and hit economic growth. “The highly uncertain
European policy backdrop is driving banks to keep shrinking, even if we
avoided a disorderly and abrupt crunch,” warns Huw van Steenis, banking
analyst at Morgan Stanley. The fund said better policies – such as a
consideration of more easing by the European Central Bank and further
structural reforms, as well as progress on bank restructuring and resolution
– would prompt a smaller, 6 per cent contraction in banks’ balance sheets,
which would boost euro-area growth by 0.6 per cent. IMF assessments assume
the bulk of deleveraging will occur through the form of asset sales, rather
than a drop-off in lending. Andrea Enria, chair of the European Banking
Authority, said earlier this month less than 1 per cent of the deleveraging
represented true cuts to lending. The IMF also vindicates the EBA’s
controversial call for banks to hold at least 9 per cent capital by finding
evidence that higher equity buffers and capital ratios boosted banks’ share
prices. “Banks with higher tier one capital outperformed other sample banks
during the European sovereign debt crisis,” it said, adding that a 1
percentage point increase in a bank’s capital ratio during the past two
years added 0.5 per cent to monthly stock returns. Elsewhere in the report,
the fund warned of the risks presented by an ever-decreasing stock of “safe”
assets. “The number of sovereigns whose debt is considered safe is declining
– taking potentially $9tn in safe assets out of the market by 2016, which is
roughly 16 per cent of the projected total.” It expects this trend to
inflate prices for the few remaining assets deemed to be safe.
- Tesco announced it will reduce new net space growth by 38% and
spend £1bn revamping its existing estate in a preliminary results statement
released this morning. (TESCO IS ALSO A TENNANT IN OUR ALDERSGATE PROPERTY
INVESTMENT IN LONDON AND WAS ALSO IN OUR SHEFFIELD RETAIL ACQUISITION WHICH
NETTED INVESTORS AN IRR OF 101% - NICO) The supermarket giant reported a
1.6% rise in underlying pre-tax profits to £3.9bn for the year to February
25, 2012. Group sales went up 7.4% to £72bn. A store refurbishment programme
will start this year as part of a £1bn commitment to improve the Tesco
shopping experience for customers. The programme will start with 430 stores,
which will see warmer colours, better lighting and a stronger emphasis on
fresh food. This includes around £400m of capital investment and will focus
on service, store formats, pricing, range and rolling out click and collect.
However, the company said overall group capital expenditure would be lower
this financial year, down from £3.8bn in 2011/12 to £3.3bn in 2012/13,
mainly driven by the reduced new store opening programme in the UK. Profits
from the UK business were down 1% for the period to £2.5bn, as customers
continued to be squeezed by falling incomes and high petrol prices. Chief
executive Philip Clarke admitted that investing more into the UK store
estate would affect profits in the short term. “These are decisive steps and
this cost investment – as we have already announced – will constrain our
near-term profitability. We are also focusing our lower overall capital
expenditure more into our existing stores and in building our online
businesses. We are adapting our UK capital plans so that we have the right
store base for the future, to underpin the returns that create long term
value for our shareholders. Together these steps are the right things to do
both to improve the shopping trip for customers and to secure a return to
profitable growth in the UK.” Tesco issued its first profit warning in 20
years in January after suffering a disappointing Christmas sales period.
- Jamie Oliver will open his fifth Union Jacks restaurant in
London’s Covent Garden, it was announced today. The restaurant, which
debuted at Central St Giles in Midtown last year, will occupy a 3,500 sq ft
unit at the Market Building in Covent garden’s piazza. It will occupy two
floors in the north hall of the building, providing seating for 158 diners.
Oliver said: “The Piazza at Covent Garden is one of the most buzzing parts
of the city, with Londoners and tourists visiting all day and night. So this
Union Jacks needs to be special and it will be – the restaurant will look
fantastic.” Beverley Churchill, brand director for Covent Garden, said:
“Over the past few months Covent Garden has become London’s new foodie hot
spot attracting fantastic new concept restaurants such as Jamie’s Union
Jacks and international icons including Balthazar.”
- Swiss watchmaker Breitling has agreed a deal to open its first
standalone store on New Bond Street at what is expected to be a record rent
of £1m. The retailer will move into a store at 130 New Bond Street after US
retailer Diesel surrendered its lease to the private landlord. The
watchmaker is expected to open 6,000 sq ft store in the new year and is
understood to have agreed a deal with the landlord to return the first floor
of the building for office use. It is understood that Diesel, which has
traded on Bond Street since 2006, is now looking to open a 15,000 sq ft
store on Regent Street.
- Regional property services firms are to be given a much-needed
boost to fee income through the chance to advise the government on its
£280bn estate. The government is reviewing its prized Estates Professional
Services framework, which is worth millions in fees to the UK’s biggest
property services firms, as part of the prime minister’s drive to award more
government contracts to small and medium-sized businesses. The framework is
to be retendered in September and officials at the Government Procurement
Service have held a series of meetings with incumbent firms to discuss the
shake-up. GVA, DTZ, Drivers Jonas Deloitte, Jones Lang LaSalle, Colliers,
Lambert Smith Hampton, Knight Frank and BNP Paribas are the incumbents,
- although GVA, DTZ and Drivers Jonas Deloitte are thought to carry
out more than 80% of the work. A Cabinet Office spokeswoman said: “The
current framework is due to expire in September, so the time is right to
review it and make sure that it is delivering the expertise the public
sector needs at the right cost, as well as supporting innovation and
simplifying processes. “The Government Procurement Service is now reviewing
the framework and engaging with the property industry as part of this
process. The government has been clear that opening up its contracts to SMEs
is a priority.” GVA carries out around 46% of the work and boasts the
coveted position as sole property adviser to the Ministry of Defence. It is
understood to earn more than £6m a year in fees from the framework. Among
the options being mooted is a split of advisory and transaction work, so
less substantial transactions can be pooled for which regional companies can
pitch. Other options are to split frameworks into smaller pieces, divided by
region, or maintain a core roster of eight to 10 companies, which will be
forced to abide by a threshold of jobs that they must subcontract to smaller
firms. The Estates Professional Services framework is a list of
“pre-approved providers” public sector bodies use to manage their estate.
Bodies ranging from central government departments and local councils to the
emergency services and the NHS use the framework to procure work, tasking
firms with cutting the estate’s £25bn-a-year running costs. “Anyone who
isn’t losing sleep about failing to get on a framework of this size at the
moment is crazy,” said one agent. Prime minister David Cameron announced a
series of measures to help small firms compete for billions of pounds of
government contracts in February, and said the aim was to give businesses
greater access to the bidding process by eliminating “excessive bureaucracy
and petty regulation”. Long-term departmental contracts, such as the
Ministry of Justice’s five-year north of England property management
contract, which GVA won a year ago, will be unaffected, and the new rules
are to be applied following retendering in September.
- UK private sector improves in March. This week saw the release of
the March Purchasing Managers’ Indices (PMI) - a key survey of private
sector activity. The UK’s services, manufacturing and construction sectors
all showed improvement. The manufacturing sector gave the highest reading
since last May and the construction sector rose to the highest level since
October 2007. Most importantly the services PMI rose from 53.8 to 55.3 (a
reading above 50 signals expansion), which is in line with the historical
average and points to a decent pace of expansion within the sector. The
surveys suggest that the UK economy rounded off Q1 on a positive note and
economic contraction over the quarter is increasingly unlikely.
- Weak output figures are at odds with improving survey data. UK
manufacturing output fell 1.0%m/m in February after a 0.3%m/m drop in
January. This is the largest fall in 10 months. In annual terms production
fell 1.4% compared to February 2011. Production data can be volatile and are
frequently revised, but it’s odd that it differs so much from the PMI. The
PMI is more forward looking so hopefully the improved data translates into a
better manufacturing output figure in March.
Wednesday, 28 March 2012
Relevant economics of the past week (for intermediaries)
- Tesco, the world's third-biggest retailer by sales, has priced the initial public offering of its Thailand property fund at Bt10.4 per unit, at the top of an indicative range, according to people involved in the deal, the FT reports. The IPO is set to raise Bt18.4bn ($602m), which would make it Thailand's largest property fund and its biggest offering since Rayong Refinery's $710m listing in 2006.
- UK manufacturing performance was 'good in parts' in February. The Purchasing Managers' Index (PMI) survey of UK manufacturing showed that the sector expanded for the second month in a row, but the rate of growth slowed. Factory production increased, leading to a rise in employment, but this is due to work on backlogs rather than new orders. Less good news is that UK domestic demand is still low and the boost from better exports to
Asia and the US has been offset by poor Eurozone demand for UK goods. News on prices wasn't good either. The surge in oil prices caused input prices to rise at their fastest monthly rate in over 19 years.
- UK housing market data were stronger. The price of a typical house in the UK increased by 0.6%m/m in February, which brought the annual rate of growth up to 0.9%. This may seem at odds with the current difficult
economic conditions, but it concurs with other recent data. Mortgage approvals for house purchases reached their highest level in more than two years in January, up 36%y/y. Some of this is due to particularly weak levels
in January 2011, but the improvement in prices and approvals is more likely
due to activity brought forward to beat the end of the stamp duty concession later this month.
- Eurozone banks were eager to take up the ECB's second dose of long-term funding. 800 banks took advantage of the ECB's liquidity operation, compared with 523 in December, as collateral rules were loosened.
The move has reduced tensions on bond yields in the most vulnerable countries. But it's unlikely ECB Chairman Mario Draghi will offer another dose. He is eager for banks to begin to operate 'normally' again by borrowing from each other. Jitters about bank solvencies in the face of the sovereign debt problems are preventing this happening at the moment.
- Inflation increased and Eurozone unemployment reached a record high rising 10.7% in January. Spain is suffering with an unemployment rate of 22.3% and a youth unemployment rate just under 50%. And Eurozone
inflation rose to 2.7% in February up from 2.6% in January. Oil is the main culprit as prices rise because of increased political tensions in the Middle East. This remains as another threat to economic recovery, in the Euro and globally.
- Savills expands list of property lenders - Savills today names 21 active "bigger ticket" property lenders, an increase of two in the last six months. The firm said the named lenders had completed at least three deals of more than £30m over the last six months or were well advanced in doing so. The four new entries to the list are AIG, Citigroup, Deutsche Postbank and Lloyds Banking Group, while Aareal and Eurohypo have disappeared.
Savills' list includes all the UK clearing banks (Barclays, HSBC, Lloyds and RBS), eight German banks and five insurance companies, AIG, Aviva, Axa, MetLife and M&G Investments. Other emerging insurance or life companies are Canada Life and Legal & General. William Newsom, Savills' UK head of valuation, said: "There is no shortage of organisations seeking to provide both senior debt and mezzanine. However, the real issues are firstly that lenders are very selective, and, secondly, tighter lending terms. "Of the lenders listed, they are looking to provide finance to selected borrowers with track record, secured against good quality commercial investment
properties, let to strong tenants on long term leases in good locations, preferably located inside the M25." Savills confirmed that loan to values had fallen over the past eight months and interest rate margins had increased by 100 basis points to 325 basis points for prime investment. Loan-to-value ratios against prime investment are around 55-60% with some banks having difficulty lending above 50%. Savills also identifies a further 50 senior debt providers, who are active at the small and medium-sized ends of the spectrum, and 30 providers of mezzanine finance. "The number of lenders in the market is encouraging to see, but the further reduction in loan to value ratios means that borrowers may increasingly access the mezzanine market in order to bridge the funding gap," Newsom added. The 21 bigger ticket lenders are: AIG, Aviva, Axa, Barclays Bank, Bayern LB, Citigroup, Deka Bank, Deutsche Bank, Deutsche Hypo, Deutsche Pfandbriefbank, Deutsche Postbank, Helaba, HSBC, ING REF, Landesbank Berlin, Lloyds Banking Group, Met Life, M&G Investments, Royal Bank of Scotland, Santander
- UK regulators and global banks are discussing a potentially far-reaching overhaul of the calculation and regulation of interbank lending rates, amid claims that the benchmark for $350tn contracts worldwide may have been subject to manipulation
- Lloyds Banking Group is lining up its second loan sale in the space of six months, PropertyWeek.com can reveal, with a £600m portfolio being put together. A sale would come on the back of the successful disposal
of £923m of loans to Lone Star in December, the Project Royal portfolio. Lloyds has not yet given the final green light to the sale, but is understood to be working with adviser JP Morgan Cazenove, which handled the
Royal sale, to decide which loans to put into the portfolio, in a process some in the market are calling Project Launcelot. A sale would be part of the range of options being considered by Lloyds to reduce its property
exposure. It is understood that this portfolio will eventually total around £600m, and that the loans will have similar characteristics to those in the Royal portfolio, where the average lot size was around £4m, and the loans
were secured against office, retail and industrial properties around the country. If the Launcelot portfolio does come to market, it will likely be bought by one of the large US private equity firms which have raised tens of
billions of dollars of equity to buy loan packages. The final two bidders on Project Royal were Lone Star and Cerberus Capital Management, both of which are looking to step up their European distressed loan acquisitions.
Blackstone has also recently set up a new division, Blackstone Real Estate Debt Advisers, to manage the £1.4bn Isobel portfolio in which it bought a stake from Royal Bank of Scotland last year, alongside other loan portfolios
Blackstone is looking to buy. It is expected that Launcelot will be the last UK loan portfolio sale undertaken by Lloyds in the medium term, because it will then have exhausted the type of loan which can be packaged up and sold. Loans that can be sold in a portfolio need to have a certain characteristic, such as no change of control covenants and minimal swap liabilities. Lloyds has a portfolio of more than £21bn of loans that are managed by its business support unit, headed by Richard Dakin, that need to be restructured or sold. Last year Lloyds achieved the difficult task of reducing its property exposure by £13.5bn to £68bn while at the same time nearly halving its losses on property to £1.3bn. This process was partly due to loan sales like Royal. Lloyds sees the Royal sale as a success, having sold the portfolio completely, without providing vendor finance, at a discount of around 40% in a process that took roughly six months. But it is thought that it is not wedded to the idea of a loan portfolio sale, having used other workout strategies in the past three years such as putting together portfolios of
assets for sale, and setting up platforms to asset manage properties over the longer term.
- UK manufacturing performance was 'good in parts' in February. The Purchasing Managers' Index (PMI) survey of UK manufacturing showed that the sector expanded for the second month in a row, but the rate of growth slowed. Factory production increased, leading to a rise in employment, but this is due to work on backlogs rather than new orders. Less good news is that UK domestic demand is still low and the boost from better exports to
Asia and the US has been offset by poor Eurozone demand for UK goods. News on prices wasn't good either. The surge in oil prices caused input prices to rise at their fastest monthly rate in over 19 years.
- UK housing market data were stronger. The price of a typical house in the UK increased by 0.6%m/m in February, which brought the annual rate of growth up to 0.9%. This may seem at odds with the current difficult
economic conditions, but it concurs with other recent data. Mortgage approvals for house purchases reached their highest level in more than two years in January, up 36%y/y. Some of this is due to particularly weak levels
in January 2011, but the improvement in prices and approvals is more likely
due to activity brought forward to beat the end of the stamp duty concession later this month.
- Eurozone banks were eager to take up the ECB's second dose of long-term funding. 800 banks took advantage of the ECB's liquidity operation, compared with 523 in December, as collateral rules were loosened.
The move has reduced tensions on bond yields in the most vulnerable countries. But it's unlikely ECB Chairman Mario Draghi will offer another dose. He is eager for banks to begin to operate 'normally' again by borrowing from each other. Jitters about bank solvencies in the face of the sovereign debt problems are preventing this happening at the moment.
- Inflation increased and Eurozone unemployment reached a record high rising 10.7% in January. Spain is suffering with an unemployment rate of 22.3% and a youth unemployment rate just under 50%. And Eurozone
inflation rose to 2.7% in February up from 2.6% in January. Oil is the main culprit as prices rise because of increased political tensions in the Middle East. This remains as another threat to economic recovery, in the Euro and globally.
- Savills expands list of property lenders - Savills today names 21 active "bigger ticket" property lenders, an increase of two in the last six months. The firm said the named lenders had completed at least three deals of more than £30m over the last six months or were well advanced in doing so. The four new entries to the list are AIG, Citigroup, Deutsche Postbank and Lloyds Banking Group, while Aareal and Eurohypo have disappeared.
Savills' list includes all the UK clearing banks (Barclays, HSBC, Lloyds and RBS), eight German banks and five insurance companies, AIG, Aviva, Axa, MetLife and M&G Investments. Other emerging insurance or life companies are Canada Life and Legal & General. William Newsom, Savills' UK head of valuation, said: "There is no shortage of organisations seeking to provide both senior debt and mezzanine. However, the real issues are firstly that lenders are very selective, and, secondly, tighter lending terms. "Of the lenders listed, they are looking to provide finance to selected borrowers with track record, secured against good quality commercial investment
properties, let to strong tenants on long term leases in good locations, preferably located inside the M25." Savills confirmed that loan to values had fallen over the past eight months and interest rate margins had increased by 100 basis points to 325 basis points for prime investment. Loan-to-value ratios against prime investment are around 55-60% with some banks having difficulty lending above 50%. Savills also identifies a further 50 senior debt providers, who are active at the small and medium-sized ends of the spectrum, and 30 providers of mezzanine finance. "The number of lenders in the market is encouraging to see, but the further reduction in loan to value ratios means that borrowers may increasingly access the mezzanine market in order to bridge the funding gap," Newsom added. The 21 bigger ticket lenders are: AIG, Aviva, Axa, Barclays Bank, Bayern LB, Citigroup, Deka Bank, Deutsche Bank, Deutsche Hypo, Deutsche Pfandbriefbank, Deutsche Postbank, Helaba, HSBC, ING REF, Landesbank Berlin, Lloyds Banking Group, Met Life, M&G Investments, Royal Bank of Scotland, Santander
- UK regulators and global banks are discussing a potentially far-reaching overhaul of the calculation and regulation of interbank lending rates, amid claims that the benchmark for $350tn contracts worldwide may have been subject to manipulation
- Lloyds Banking Group is lining up its second loan sale in the space of six months, PropertyWeek.com can reveal, with a £600m portfolio being put together. A sale would come on the back of the successful disposal
of £923m of loans to Lone Star in December, the Project Royal portfolio. Lloyds has not yet given the final green light to the sale, but is understood to be working with adviser JP Morgan Cazenove, which handled the
Royal sale, to decide which loans to put into the portfolio, in a process some in the market are calling Project Launcelot. A sale would be part of the range of options being considered by Lloyds to reduce its property
exposure. It is understood that this portfolio will eventually total around £600m, and that the loans will have similar characteristics to those in the Royal portfolio, where the average lot size was around £4m, and the loans
were secured against office, retail and industrial properties around the country. If the Launcelot portfolio does come to market, it will likely be bought by one of the large US private equity firms which have raised tens of
billions of dollars of equity to buy loan packages. The final two bidders on Project Royal were Lone Star and Cerberus Capital Management, both of which are looking to step up their European distressed loan acquisitions.
Blackstone has also recently set up a new division, Blackstone Real Estate Debt Advisers, to manage the £1.4bn Isobel portfolio in which it bought a stake from Royal Bank of Scotland last year, alongside other loan portfolios
Blackstone is looking to buy. It is expected that Launcelot will be the last UK loan portfolio sale undertaken by Lloyds in the medium term, because it will then have exhausted the type of loan which can be packaged up and sold. Loans that can be sold in a portfolio need to have a certain characteristic, such as no change of control covenants and minimal swap liabilities. Lloyds has a portfolio of more than £21bn of loans that are managed by its business support unit, headed by Richard Dakin, that need to be restructured or sold. Last year Lloyds achieved the difficult task of reducing its property exposure by £13.5bn to £68bn while at the same time nearly halving its losses on property to £1.3bn. This process was partly due to loan sales like Royal. Lloyds sees the Royal sale as a success, having sold the portfolio completely, without providing vendor finance, at a discount of around 40% in a process that took roughly six months. But it is thought that it is not wedded to the idea of a loan portfolio sale, having used other workout strategies in the past three years such as putting together portfolios of
assets for sale, and setting up platforms to asset manage properties over the longer term.
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