Has the commercial property boom of recent years been fueled by fund managers? This is the question being asked, has the demand for higher yielding investment funds driven property fund investment managers to pay too much for secondary locations and shorter leases? Now that the bubble has burst and the heard have turned, are there opportunities for investors to make the higher returns that inflated this asset bubble?
Questions like these are causing investors to question the motives of some I.F.A’s and fund managers who profit from the cash going into a fund more than the performance of the funds they recommend or manage.
March 8, 2010
High yielding investment funds?
February 24, 2010
Opportunities in Commercial property Investment
A recent report has outlined the situation of empty shops in various city centres. Wolverhampton, Bradford, and Sheffield were named among places where there is more than the normal concern. The 2008 / 2009 recession may be one factor to blame as part of the reason for shop closures/ empty shops, but it has also to be considered what affect our shopping patterns that we all now undertake may have on the shops that are now closed.
In Peterborough a fairly large modern enclosed shopping centre known as Queensgate exists, and has been in existence for some years and therefore the long term presence of such can be considered on the area. Queensgate is not only close to the city centre but is also just outside the train station with connections to the North / South / Lincolnshire / the Anglia Region and the Midlands. Queensgate also houses the bus station providing bus services locally, and apart from a good road network in and around Peterborough the city is also close to the A1 Road providing major road access to Peterborough. Queensgate and shopping centres like it and the recession is bound to have an effect on surrounding properties / shops, and part of the solution may be action as outlined for Stoke on Trent below.
The Stoke on Trent area suffered in the second half of the 20th century with the decline of the potteries and coal mining but more recently has seen regeneration, including small but nevertheless valuable property improvements and development schemes including developing empty shops into projects to fit local demands as for example a hairdressing salon with flats being provided above. These projects thus providing much wanted rented accommodation, and providing a mixed use asset for landlords and tenants. No doubt this kind of approach does and can help everyone in many a village, town and city that have vacant and run- down buildings and makes full use of valuable space.
Now with building developments generally in Britain progressing at a less hectic pace than say in 2006/7 it may be a good time to grab the opportunity to carry out work on empty shops/ pubs etc in a village, town, or city near to you to utilise the space by providing flats and commercial premises to meet present day needs. You may be interested in a developing a site/ building in your locality and local people are probably best to choose the right kind of development for site concerned for the area they know well.
February 1, 2010
Property developers to make money in speculative property development?
Many investors are now looking to the UK property markets especially London for the best returns from speculative property development. The recent falls in prime London property prices have been the hardest hit for nearly two decades, with some prime central office space dropping 50% in value.
The recent movement in the currency markets have made property investment in the UK property market a much more attractive prospect for foreign property investors.
January 29, 2010
UK commercial property out performing US commercial property sector ?
There are some alarming figures for the US commercial property sector being bandied around, some say that US commercial property values are at a seven year low. There has also been talk of office rentals having hit average occupancy levels of as low as 80%.
So when there are such strong signs of recovery in the UK commercial property market, and signs of property investors bullish about the returns from the UK commercial property market. How long will it be before the UK banks start to look more favorable at lending on property development ventures and speculative property development funding?
January 22, 2010
Property development sites and building plots
The world of house building and property development sites is awakening from its slumbers, there is the sound of the first tentative footsteps from the speculative property development funders. Land agents are starting to dust themselves down and pick themselves up after some of the knock out blows that the down turn in the property market has caused them.
Property and land deals are starting to be put together with the usual collaborations and joint ventures from the banks and funding agencies with property developer’s builders and main contractors. Land agents are starting to enjoy their finder’s fees and the professional fees for architects, commercial surveyors, and conveyances are starting to flow. Many of the professionals within the property sector are looking to build back there reserves and to recruit new staff. The designers and estate agents are watching for the first signs of new build properties coming to market.
The many private investors and investment consortiums are starting to flex their muscles after a long and unwelcomed break. The banks and development funding agents along with auction and bridging finance houses are starting to talk to the secondary and tertiary lenders to see if property deals stack up.
There are design statements, feasibility studies, and development appraisals being written with bankers and lawyers starting to prepare joint venture and funding contracts, project meetings and property development negotiations taking place and soon there will be site clearances, demolition, and ground works taking place. The companies that complete the preliminaries, main contractors and sub contractors will start to see their contract managers and quantity surveyors busily preparing tenders documents. Soon there could even be builders building, is some normality returning to the property development and property sector?
January 16, 2010
Investing in property, £250 million property investment fund looks for returns from property market improvements.
Many fund managers have been looking to both institutional and private investors to provide the capital for funds to invest in property when it looks to be at or near the bottom of the property cycle.
These new breeds of property recovery funds are targeting the cream of property investments, they are looking to target long leases, strong covenants and quality tenants. The sectors seem of less importance with fund managers looking at industrial, and retail in the form of quality warehousing and good high street locations.
January 11, 2010
Black mould and condensation as the big thaw begins
Many properties will have to face the ever growing black mould, this unpleasant problem is usually caused by condensation. The weather is now changing and many will find black mould growth on ceilings and walls in bathroom, bedrooms and kitchens. The black mould grows where there is a high moister level and the moister condenses on cold spots, often ceilings or walls.
This will cause many householders hours of frustration bleaching and scrubbing, and for many regular and costly redecoration. With simple technology most houses can be cured from this often seasonal menace in a matter of weeks.
January 8, 2010
Lending thaw critical to property sectors recovery as the snow falls.
The property sector has cautiously welcomed the start of lending thaw as the snow falls, and the Bank of England and many other credit condition experts do expect credit conditions will continue to gradually improve in the early part of 2010.
Many believe that the banks are getting braver because they have not seem the mortgage defaults that many had expected in recent times, this coupled with the increased capital values of the property that banks have their loans secured on, means they have good commercial reasons to start loosening their lending criteria.
January 4, 2010
First faller for 2010
It is widely reported that the fashion chain D2 has gone into administration, the company occupies 70 commercial retail properties. It is thought that the administrator dealing with the company is actively looking for a buyer for the chain.
Many retailers have enjoyed a better than anticipated Christmas but as always the smaller retail chains still need to work hard to stay afloat, and many predict a some will give in and call in the administrators in January.
With many commercial landlords positive about the medium term prospects for commercial property they are choosing to re-let some properties on short leases. This is because they anticipate a much improved letting market in the medium term and fear missing out on good tenants and good deals, as the UK commercial property market improves.
December 31, 2009
Government announces new planning policy statement 4 (PPS4) for the urban and rural economies.
This planning policy document is aimed at protecting independent in town retailers and assisting in the control of the development of out of town retail developments. The new policy will include an impact statement which will look at a number of issues that will be created by out of town developments, such as the environmental / green development needs, the impact on consumer choice, consumer spending jobs, and the impact on the local high street.
This new policy if used correctly could breathe new life into the zoned town centers and protect them during the commercial property recovery. It should stop the “ghost town”, impact that badly planned out of town developments have been accused of creating in the past.