JULY 2009
|
www.opp.org.uk International Property Reporter | Stephen Harris & 0044 (0)208 439 9572 8
stephen.h@opp.org.uk
|
15
CURRENCY
NEWS IN BRIEF
Rate drop ‘not reaching borrowers’
New confidence in sterling rise
INDUSTR
£200m fund targets
retirement parks
A £200million UK-based equity fund has
The weakness of the European economy
made its first investment in a mobile re-
is helping to restore confidence in the tirement home company. Frogmore Real
Y
sterling’s rise against the euro. The pound
Estate Partners II paid approximately £17
reached a year-long high of €1.18 but has
million for Britannia Parks’ portfolio of 20
freehold retirement parks located across
yet to reach the benchmark €1.20 that
the south of England. The fund was
many currency brokers are suggesting
sourced from pension funds and other
will be the tipping point for UK investors
institutional investors, three quarters of
to return en masse to the continent. which came from North America, with
Recent reports suggest that Europe’s
the rest from Europe. The parks contain
PEOPLE
financial institutions have a long way to
a total of around 1,200 bungalow-style
properties worth an average of £150,000
go before recovery. The financial analysis
each. Residents own the homes but pay
firm Standard & Poor’s has given a
a monthly groundrent-style fee to the
negative assessment of more than half of
park, which owns the land and also takes
the continent’s biggest banks, while the 10% of the sale of each property.
European Central Bank’s latest Financial
Stability Review stated that eurozone In sight
|
Weaknesses in Europe’s economy may help sterling to reach €1.20
Exit for EU non-listed investors
The majority of European non-listed
banks might still have to write down
real estate funds are designed to allow
$283 billion worth of loans by the end David Lamb, head of treasury services rebounded to $1.38 after falling to $1.23
investors to exit their investments,
DESTINA
of 2010. at No 1 Currency, said: “Over the last from a high of around $1.60 last year. “It’s
according to the INREV Liquidity Provi-
“Things are getting progressively few weeks, it’s definitely been the view done almost a complete U-turn,” said sions Study – which found that 89% of
worse in Europe and the news is that investors are seeing value in the UK Stephen Hughes, director of Foreign
institutional funds offered investors an
continually bad,” said Mark O’Sullivan currency. But we’re still waiting for the Currency Direct. “This has been a really
exit route whether through redemp-
TION
tions or trading or a combination of
(pictured), director of dealing at €1.20 trigger point – we’ve got clients poor time for the US, mainly due to the
both. Value added funds offer the most
Currencies Direct. “The eurozone is made waiting for that figure before they get high unemployment rates.”
liquidity with around 94% including exit
up of 16 different economies, each with into property.” American investors have shown some
options but core funds are not far be-
their own problems. It’s going to be a interest in Europe but are still being hind at 84%. Opportunity funds are the
long hard slog for the Europeans. But if Dollar rebound very cagey, said Lamb. “It will take more
most illiquid style with 3% offering exit
you’re a cash buyer looking at Europe, The single currency is making headway stability and more lending before we see
options. “The results refute the view that
non-listed funds cannot provide liquidity
you’re going to do well.” against the dollar, however, having more dollars coming into the market.”
for investors,” says Lisette van Doorn, CEO
BUSINESS
of INREV.
FUNDS
UK fund closes with £300m
UK property fund and asset manager
Fund targets
Mountgrange Investment Management
last month announced the closure of its
distressed CEE
first fund with a total of £300 million of
committed equity. With debt, the fund
will have £850 million of acquisition
M&A Property Investors, the real estate capacity, having attracted over 30
and property division of Swiss finance
investors from around the world
firm M&A Investors SA has regrouped
including the US, Canada, the UK,
DE
Europe, the Middle East and Australia.
under Swiss-Italian financier Marc E. VEL
Capital came from a number of sources
Cottino (pictured) to invest in European
including endowment and pension
OPER
and other real estate assets.
funds, sovereign wealth funds and high
Before joining M&A, Cottino was net worth individuals. The fund is
co-founder of Luxembourg-based private
focused on the United Kingdom and is
equity real estate investment company
expected to take advantage of
Millenium Capital, and directly involved
depressed valuations.
in sourcing 22 real estate projects across
Deyaar to buy back distressed
Europe totaling €320m of equity capital
Dubai developer Deyaar has secured
investments. Cottino will lead a team of Eastern promise
|
Around 60% of the fund will go towards CEE cities such as Bratislava Dh200 million for a distressed asset fund
M
seven experienced analysts in Lugano,
to buy back property from investors who
ARKE
Geneva and Paris “to target value-added, screen” of larger funds where it can Central and Eastern Europe (primarily
default on payments. It will take
opportunistic and distressed real estate”. “inject both capital and development or residential and commercial). The
advantage of recent changes to the law
that will allow Deyaar to keep a
TING
operational expertise”. remainder will be invested in renewable
percentage of defaulting investors’
‘Below the radar’ deals Typical investments will range between energy (solar, wind) projects in North
money and so sell the properties below
Outlining its aims in a statement, the €10m and €20m, with 60% due to be Africa, particularly in Morocco where it market value to the fund. The properties
firm said it was looking to invest in invested in distressed or non-performing has identified high domestic demand for
will be held for several years and resold
opportunities that fall “below the radar real estate and property investments in new residential property.
at a profit.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72