Tag Archives: investors
German Property Quiet Boom Attractive To Investors
News Posted On: 04 July 2013 Germany’s status as a safe haven for investors is well documented. But the forces that have generated a housing boom in the Eurozone’s most prosperous economy go beyond interest from investors anxious to squirrel their money away safely. The boom in German property has come as a result of low unemployment, rising construction rates and robust growth in rents, according to UK-based Knight Knox international. Germany was recently voted Europe’s most attractive property market, in a survey held by property consultants CBRE. The result was backed up by statistics indicating that every sector of the German property market is flourishing. The rental sector alone is worth over £890 billion in a country where homeownership is low, at around 53%. German rental rates have grown by 15% over the last five years, while apartment prices have risen by 23% in the same period, according to BulweinGesa, Germany’s leading property indices. But the growth of the German housing market is underpinned, not by foreign investment or speculation, but by genuine economic growth. Germany’s unemployment rate is near to its 2012 record low, representing the deepest cut in the jobless rate since reunification. The 2.943m Germans out of work make up 6.8% of the population, as against unemployment of 7.8% in the UK. There’s more though: part of the German employment boom is in the construction industry, where residential construction rates grew by 2.5% in the third quarter of 2012. Rather than a speculator-led bubble, though, the German property market is participating in a nationwide economic upswing. And that’s being recognised by investors. Germany drew in over a fifth of the overall investment in Europe last year and international investors carried out 40% of 2012’s transaction volume. Investment in German real estate totalled €6.7bn in the first quarter of 2013, a 21% year-on-year increase, according to Savills. Berlin, once a stoutly industrial city and then the home of the Wall separating the two Germanies, is now the home of a rocketing population – up by over 100,000 since 2007 – and increasing rents, which have risen by a third in the same period. Apartment prices have seen a 41% increase, according to online broker Immobilienen Scout. Mitte, a city centre district of Berlin, has been a vital part of the city’s property boom, with apartment prices now nudging £6,700/m2 in the district. Comparable properties in Charlouttenburg-Wilmersdorf run to £4,700/m2, though the two districts are close; German property is governed by German perceptions of desirable neighbourhoods. Germany’s boom has seen prices rise so sharply in Berlin that both Germans and foreigners have begun to look further afield. The German provincial cities are increasingly sites of investment as well as purchase for habitation, showing much lower prices but comparable rental demand. And the German economy, still Europe’s healthiest and the Eurozone’s pricipal creditor, underpins this strong housing growth, indicating bright days ahead for investors in German property. Les Calvert – overseas property reporter Continue reading
Forestry Investments in Emerging Markets
the Netherlands – 30 May, 2011 Investments in forestry have many desirable features. Under certain conditions, forestry investments yield attractive returns to investors and can contribute substantially to the economic, social and environmental development of countries. Environmentally and socially conscious investors are actively exploring the “ins and outs” of forestry opportunities, motivated by opportunities that are profitable, but also in line with their core values. Between the 17th and 19th of May 2011, about 50 participants attended the meeting “Forestry Investments in Emerging Markets.” About one third of the participants were socially and environmentally conscious investors and investment advisors. Another one third of the participants jointly represented 17 investment opportunities in the tropical hemisphere, together worth over 95 million of investments in responsible forestry. The meeting took place in the Netherlands, a country with significant expertise in tropical forestry and a history of public and private investment in forestry in developing countries. The meeting was organized by FAO , the NFP Facility and Tropenbos International with support of the Business in Development Network , and the Ministry of Economic Affairs, Agriculture and Innovation of the Netherlands. The meeting was attended by institutional investors, investment advisors, timber funds, forest business developers, and forestry specialists. Selected NFP Facility partner countries attended the meeting. Participants from these countries included forest finance professionals that have worked domestically to identify promising business opportunities. Objectives of the meetings were to: Share perspectives on challenges and opportunities regarding the greater involvement of investors in forestry (REDD+, biodiversity, forestry) in emerging markets Showcase and discuss a variety of forestry-based business cases and fund structures as a basis to better understand the requirements and potential of such business cases and for collaborative work between potential investors and promising forest business initiatives in emerging markets. Contribute to an action plan to narrow the gap between investors and forestry opportunities. The interactive programme – consisting of plenary, panel and group sessions – provided and informal platform for exchange and engagement among participants. Seventeen businessfact sheets from seven countries provided the basis to discuss in concrete terms the risks and opportunities to invest in forestry in emerging and frontier markets. The cases included plantation forestry, natural forest management, processing and alternative businesses. In addition, several participants shared short notes on their work, which were contained in the information package. Publications Documents Presentations Contact Media Report: Forestry Investments in Emerging Markets Information package Business Factsheets Programme: Forestry Investments in Emerging Markets List of participants to the Forestry Investments in Emerging Markets event Continue reading
Business Properties With Commercial Appeal
The retail sector may be struggling to pick itself up following the recession but there are still plenty of profitable non-residential options for investors. Here, Zoe Dare Hall offers advice for landlords looking to buy a commercial property. Head space: the right tenant can make innovative use of commercial premises Photo: Rex Features By Zoe Dare Hall 5:36PM BST 14 Jun 2013 In the world of commercial property , Ray Bloom is a young star. Now aged just 25, four years ago he bought the Mayfair-based commercial property company John D Wood and has since doubled turnover to more than £2m. He is now developing a UK-wide network of franchises and is branching out into commercial property in Egypt. Not everyone seeking to enter the market can emulate Bloom’s level of ambition or success. But in trying to find that first step on the commercial ladder, the trick, says Bloom, is timing. “If you buy well, fix the building and then sell smart, you will be successful. In today’s rather stagnant market, where growth is difficult to achieve, the key is to be a good manager of the property and work closely with your tenants, who are your customers.” Unlike the residential market, commercial property is mainly income-driven. There are three key sectors – offices, industrial and retail – and all are potentially available to private investors, who own around 12 per cent of UK commercial property, according to Christopher Reeve, partner at the property consultancy Bidwells. “It sounds small,” he says, “but it is a significant and growing sector when you bear in mind the average commercial property investment lot size is more than £1 million.” The timing is good. Commercial property is on the turn and individual investors need to find smaller opportunities off the radar of big commercial companies and pension funds. For example, in Bolton you can buy a shop on a busy road with a flat above (and the same residential tenant for 12 years) for £60,000-£80,000 through Miller Metcalfe. Or in Bloomsbury’s Lambs Conduit Street, commercial agents LDG are marketing a mixed-use, 508 sq ft building with an A3 licence (suiting a café or restaurant) for £300,000, with credit a projected annual rent of £30,000. Ideal, say LDG, for a new commercial investor. Shops may be an attractive entry point into commercial property but recession has hit the retail sector hard, with one in six high street shops now said to be empty – and our consumer habits are rapidly changing. “A number of investors who bought what they perceived to be good quality investments such as Woolworth and Comet have suffered,” says Richard Cleminson, head of Kinleigh Folkard & Hayward’s commercial services division. “Towns still suffering from the recession have seen landlords accepting rents at 50 per cent of what they were previously achieving – if they can relet the unit at all.” Damian Lloyd, director at the commercial property agency GVA, is more positive about retail opportunities. “In thriving towns such as Stratford-upon-Avon, where a Jessops closes, a trendy new perfume shop opens,” he says. “I see this as a catalyst of growth for some high streets – not all – but you need to think carefully what shops stand a chance of survival.” And for landlords who fear empty shop units, one possible lifeline is being offered by AppearHere.co.uk , a new online marketplace that brings together landlords looking to find tenants and individuals or retailers seeking a pop-up shop. Alternatively, smaller units such as a 500-1,500 sq ft lock-up are a good starting point for first-time commercial property investors, because of good returns and easy lets. Lloyd recommends looking at industrial premises. “They are very sought-after at the moment. As long as we’re still making things in this country, there are always going to be start-up businesses that need premises.” Office space is another area to consider – although this can be “difficult to crack” for individual investors, says Damian Lloyd. “They tend to come in large lots, which means they are expensive, or on business parks, which is a flat market at present.” Outside London, the office market is stifled by a lack of liquidity, with regional values down by 48 per cent on their peak and owners reluctant to sell at a loss. The lack of Grade A office stock in regional cities – Birmingham is one example – means some investors are spotting an opportunity in refurbishing older stock. And the internet and homeworking, it seems, haven’t killed off the need for offices. Knight Frank reports that Google’s new 800,000 sq ft campus in London and Yahoo’s ban on working from home will create a wave of IT jobs that didn’t exist 20 years ago and are mostly office-based. “We see retail as best suited in the next cycle to those prepared to actively and imaginatively manage the asset, possibly incorporating leisure and hotels,” reports Knight Frank’s latest UK Market Outlook. “In contrast, offices we see leading the upswing.” Continue reading
