Reuters is reporting that iconic London retailer Liberty Plc (LIBE.L) is mulling a sale and leaseback of its flagship store in London's prime West End theatre district, as UK commercial property prices continue to rebound.
"A number of parties have expressed interest in acquiring the freehold of the Tudor Building which may lead to an acceptable offer being made for the freehold," Liberty, which is 68 percent owned by MWB Group (MWB.L), said on Monday.
The company said in a statement it has been examining and assessing a range of options and initiatives over the past six months, and will make a further announcement on the sale of the 125,000 square feet store, near Regent Street, if appropriate.
British commercial property values rose 1 percent in January, the sixth-consecutive monthly gain in capital values in a strong rebound following a 45 percent plunge in values between June 2007 and August 2009,
Reuters
Wednesday, 3 March 2010
Monday, 1 March 2010
Survey for 2011 Predicts Property Dip
UK commercial property values are likely to dip again next year as the poor economy and continued rental weakness curb a strong price recovery seen for 2010, a survey showed.
Property experts polled this month expect prices to decline by 0.6 percent in 2011, compared with predictions of a 2.2 percent rise just three months ago, the Investment Property Forum (IPF) said in its quarterly report.
The price outlook for this year is significantly improved however, with average values seen rising 5.9 percent against the previous prediction of 2.4 percent, said IPF, which surveyed 29 fund managers, property advisors and equity analysts.
British commercial property values fell 5.6 percent over the whole of last year, although prices have rebounded since July including a one percent rise last month, figures from the Investment Property Databank (IPD) showed.
Real estate experts warned last month at an industry seminar the recent upswing in investments in UK commercial properties masks uncertainties and risks that hit the recovery, urging caution when investing in the market.
"There is little evidence of any expectation of occupier demand driving rental growth until 2012 ... weak rental value growth forecasts across the sectors are understandable against a back drop of continuing weak economic data," IPF said.
Forecasters in the IPF survey expect average rents for offices, retail, and industrial properties to fall 4.4 percent in 2010, and to remain almost flat in 2011 with just a 0.1 percent rise before improving 2.4 percent in 2012.
Capital values are also seen rising 2.3 percent in 2012, said the IPF survey, which was funded by top UK property companies including Land Securities (LAND.L), British Land (BLND.L) and Hammerson (HMSO.L).
Total returns from commercial properties -- which comprises rental income and capital growth -- would hit 13.4 percent this year, before falling back to 6.6 percent in 2011, and 9.1 percent in 2012, IPF said.
Reuters
Property experts polled this month expect prices to decline by 0.6 percent in 2011, compared with predictions of a 2.2 percent rise just three months ago, the Investment Property Forum (IPF) said in its quarterly report.
The price outlook for this year is significantly improved however, with average values seen rising 5.9 percent against the previous prediction of 2.4 percent, said IPF, which surveyed 29 fund managers, property advisors and equity analysts.
British commercial property values fell 5.6 percent over the whole of last year, although prices have rebounded since July including a one percent rise last month, figures from the Investment Property Databank (IPD) showed.
Real estate experts warned last month at an industry seminar the recent upswing in investments in UK commercial properties masks uncertainties and risks that hit the recovery, urging caution when investing in the market.
"There is little evidence of any expectation of occupier demand driving rental growth until 2012 ... weak rental value growth forecasts across the sectors are understandable against a back drop of continuing weak economic data," IPF said.
Forecasters in the IPF survey expect average rents for offices, retail, and industrial properties to fall 4.4 percent in 2010, and to remain almost flat in 2011 with just a 0.1 percent rise before improving 2.4 percent in 2012.
Capital values are also seen rising 2.3 percent in 2012, said the IPF survey, which was funded by top UK property companies including Land Securities (LAND.L), British Land (BLND.L) and Hammerson (HMSO.L).
Total returns from commercial properties -- which comprises rental income and capital growth -- would hit 13.4 percent this year, before falling back to 6.6 percent in 2011, and 9.1 percent in 2012, IPF said.
Reuters
Wednesday, 24 February 2010
M1 Pays £175m for West End Block
Monaco-based property and development company M1 Group will spend GBP400 million on property this year despite increased competition, after signing the largest office deal in London's West End since 2007, Chief Executive Moustapha El-Solh said.
The private company, which is looking to invest in prime property with good tenants ensuring stable income, has cash to invest. Because it doesn't need to arrange financing, M1 can move quickly and secure exclusive talks.
"The past 12 months have been hectic and there is a lot of competition in London's property market ... but vendors prefer all-equity buyers" to secure deals, said El-Solh.
Although there is more competition, there also are more properties coming onto the London market. Property consultants Jones Lang LaSalle currently is marketing London trophy building 1-3 Buckingham Gate for £78 million, the National Magazine House at Carnaby Street for GBP45 million and Charlotte House at 11-14 Windmill Street for GBP15 million.
While prices are firming up and there are more overseas buyers and institutional investors in the market, El-Solh is confident of beating rivals because of M1's cash position. "We have the financial resources to close deals," he said.
Wall Street Journal
The private company, which is looking to invest in prime property with good tenants ensuring stable income, has cash to invest. Because it doesn't need to arrange financing, M1 can move quickly and secure exclusive talks.
"The past 12 months have been hectic and there is a lot of competition in London's property market ... but vendors prefer all-equity buyers" to secure deals, said El-Solh.
Although there is more competition, there also are more properties coming onto the London market. Property consultants Jones Lang LaSalle currently is marketing London trophy building 1-3 Buckingham Gate for £78 million, the National Magazine House at Carnaby Street for GBP45 million and Charlotte House at 11-14 Windmill Street for GBP15 million.
While prices are firming up and there are more overseas buyers and institutional investors in the market, El-Solh is confident of beating rivals because of M1's cash position. "We have the financial resources to close deals," he said.
Wall Street Journal
Tuesday, 23 February 2010
Candy Brothers LA Property Deal Turns Sour
Candy brothers lose millions of dollars on LA property deal that turned sour
Britain's most extravagant property developers may finally be feeling the pinch.
With their celebrity friends, fleet of fast cars and yachts and homes in London and Monaco, Nick and Christian Candy were the brothers who had it all.Now, though, Britain's most extravagant property developers may finally be feeling the pinch.
The Candys – through Christian Candy's company CPC – are being forced to hand back an eight-acre site earmarked for luxury apartments in Beverly Hills, California, after their consortium defaulted on a $365.5 million bank loan.
The property is due instead to be sold to the highest bidder at auction on Thursday.
It is highly unlikely to fetch anything like the $500 million the brothers' consortium paid for it in the first place and they will not see a penny from its sale. The likelihood is no buyer will be found and the bank will take control.
The pair are also moving from their palatial, London headquarters while the coming weeks will see the resumption of a bitter legal dispute with their one-time wealthy Arab partners.
Britain's most extravagant property developers may finally be feeling the pinch.
With their celebrity friends, fleet of fast cars and yachts and homes in London and Monaco, Nick and Christian Candy were the brothers who had it all.Now, though, Britain's most extravagant property developers may finally be feeling the pinch.
The Candys – through Christian Candy's company CPC – are being forced to hand back an eight-acre site earmarked for luxury apartments in Beverly Hills, California, after their consortium defaulted on a $365.5 million bank loan.
The property is due instead to be sold to the highest bidder at auction on Thursday.
It is highly unlikely to fetch anything like the $500 million the brothers' consortium paid for it in the first place and they will not see a penny from its sale. The likelihood is no buyer will be found and the bank will take control.
The pair are also moving from their palatial, London headquarters while the coming weeks will see the resumption of a bitter legal dispute with their one-time wealthy Arab partners.
Monday, 22 February 2010
JP Morgan May Move Back to The City
Canary Wharf’s hopes of taking the crown as London’s main financial centre have suffered a new blow as it emerged that JP Morgan is scouting for office locations back in the City.
The US investment bank is considering backing out of its £1.5 billion European headquarters development in Canary Wharf and is understood to be looking at other development sites and existing office buildings, as it reviews its plans for its HQ.
JP Morgan has not ruled out the option to scrap altogether proposals to consolidate all staff, including newly incorporated Cazenove employees, under one roof. It is instead considering renting separate offices to accommodate its thousands of UK workers, in addition to or instead of several other buildings it occupies in the City and Canary Wharf.
The future of the scheme was first called into question in December when Jamie Dimon, JP Morgan’s chief executive, expressed anger at the proposed tax crackdown on bonuses, which had prompted it and other banks to reconsider having significant operations in London. Office agents expect the bank to confirm a final decision on whether it will abandon development plans imminently.
Timesonline
The US investment bank is considering backing out of its £1.5 billion European headquarters development in Canary Wharf and is understood to be looking at other development sites and existing office buildings, as it reviews its plans for its HQ.
JP Morgan has not ruled out the option to scrap altogether proposals to consolidate all staff, including newly incorporated Cazenove employees, under one roof. It is instead considering renting separate offices to accommodate its thousands of UK workers, in addition to or instead of several other buildings it occupies in the City and Canary Wharf.
The future of the scheme was first called into question in December when Jamie Dimon, JP Morgan’s chief executive, expressed anger at the proposed tax crackdown on bonuses, which had prompted it and other banks to reconsider having significant operations in London. Office agents expect the bank to confirm a final decision on whether it will abandon development plans imminently.
Timesonline
Monday, 15 February 2010
Yields Stabilizing on UK Commercial Property Market
Central London offices are still the main source of good news in the occupational market, with activity and demand up, incentives down and headline rents increasing in the City. With a subdued pipeline, growth projections are being marked up and a period of strong performance is likely.
In the retail sector, better than expected Christmas trading has provided a fillip to the market but this is set against a weak 2008 and the fact that many retailers are not prospering. Moreover, as temporary Christmas lets are handed back and retailers re-evaluate their trading portfolios, availability will edge up further in some areas.
David Erwin, CEO of UK capital markets at Cushman & Wakefield said: “2010 has kicked off with a bang. Most investment agents have been busier in January than at almost any time since the late 1990's and there will be significant turnover in the next few months. Experienced vendors (including recent buyers) are taking profits whilst purchasers continue to seek stock which broadly remains in short supply. The current dynamics suggest the market is a win-win for buyers and sellers and it will be a busy run in to Easter.”
West End Popularity Boosts Shaftesbury
Property group Shaftesbury said it saw booming business in the West End despite fragile economic recovery.
Shaftesbury said that buoyant market conditions during Christmas and New Year led to record levels of activity in West End cinemas, museums and theatres.The tourist boom made shops and restaurants in the area to secure new lettings at higher rents than expected by the company.
Shares in Shaftesbury shed 2.9p to close at 376.7p-a-share.
Shaftesbury said that buoyant market conditions during Christmas and New Year led to record levels of activity in West End cinemas, museums and theatres.The tourist boom made shops and restaurants in the area to secure new lettings at higher rents than expected by the company.
Net rental income climbed 12 per cent to settle at 69.2 million pounds. Total estimated rental value of commercial vacancies decreased from 3.2 million pounds in September last year to 2.5 million pounds per year.
The company said its total vacant space dropped from 70,000 sq metres to 55,000 sq metres.
Shaftesbury has also named British Fashion Council’s CEO Hilary Riva as its non-executive director.
The company said its total vacant space dropped from 70,000 sq metres to 55,000 sq metres.
Shaftesbury has also named British Fashion Council’s CEO Hilary Riva as its non-executive director.
Shares in Shaftesbury shed 2.9p to close at 376.7p-a-share.
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