uk residential property nov 2009
DESCRIPTION
UK residential property Nov 2009. Contents. Long term trends The recession Recovery Our approach. Edinburgh. London. 70%+ of the world’s oil. 70%+ of the world’s bagpipes. The ethical, green, UK student fund. The worlds largest festival. 1,000 Castles. A bit about Scotland…. - PowerPoint PPT PresentationTRANSCRIPT
UK residential propertyNov 2009
Contents
Long term trends
The recession
Recovery
Our approach
The ethical, green, UK student fund70%+ of the world’s bagpipes 70%+ of the world’s oil
Edinburgh
London
The worlds largest festival
1,000 Castles
Europe’s 3rd largest financial centre
A bit about Scotland…
500 golf courses700 islands
UK property
BristolGlasgow Liverpool
Newcastle
Manchester DundeeEdinburgh
Nottingham
Long term trends
Long term trends – ownership.
Residential:• The rental market remains small• The Gov. aims to encourage its growth
Long term trends – size and ownership.
Residential a very large asset class, with low UK Institutional participation
Above: Residential consistently outperforms other asset classes
Below: Residential has been less volatile in a downturn
Long term trends – residential performance
UK asset performance to December 2008
Long term trends – price growth.
Residential: London and UK move in the same way Source: Halifax and Government
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UK PropertyLondon Property
Long term trends – price growth.
Residential: Long term stable growth and low volatility Source: Halifax and Government
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FTSE All ShareUK PropertyLondon Property
Recession
Recession – overall impact (peak to trough)
-40% Shares
CommercialProperty
All ResidentialProperty
Gm Residential
-15%
-45%
-11%
Recession – city by city performance
Gm has outperformed the market by 30%
Land Registry Gm Funds Diff.
Edinburgh -10% -6% + 4%
Glasgow -13% -7% + 6%
Stirling -11% -7% + 4%
Dundee -11% -4% + 7%
Newcastle -13% -8% + 5%
Nottingham -14% -15% -1%
Birmingham -14% -12% + 2%
Bristol -19% -13% + 6%
Liverpool -13% -12% + 1%
Salford -15% -14% + 1%
Manchester -15% -18% -3%
Grand total -15% -11%
Recession – recent international price trends
Recession – recent price trends
Prices have risen for 7 consecutive months
Recession – a positive impact on the student rental market
+10%
• Large / growing student market• 175,000 students turned away!• Shortage of student housing
Recovery – 4 stages
‘House prices have risen for the past 7 months’ – Nationwide
Headlines
Our approach
What we do
Property funds
We outperform the market by 30%
Private Clients
‘One stop solution’
• Source• Renovate• Furnish• Let / manage
About Grant Management
Worldwide client base12 UK cities £500m / 1,850 prop. under man.
Lloyds Banking Group own 20%
ARLA members / code of practice
Traditional over new build?
Shortage of supply Better locations Higher yields
0%
1%
2%
3%
4%
5%
6%
7%
London New build Gm
2%
Gross Yields
7%
4%
How we add value
Buying well Price, location Investment model
Renovations On time – 8 weeks On budget - fixed price
Management Safety/ compliance Occupancy – 95%
Before After Diff.
Value £215k £250k + £35K
Rent pcm £788 £1,400 + £612
Yield 4.4% 7.6% + 72%
Case Study – adding value
2 (MD) Summerhall Square, Newington,
Edinburgh, EH9 1QD
Bought: Mar 2009
Renovation Costs: £32,475
Our homes
The student market
Large university cities Secure income (Joint leases/guarantors) Universities “recession proof”
Around 75% of our properties are let to students
• Residential is a good asset class
• Gm offers a great solution for private clients and funds
• Student Market is large and growing
• Great time to buy
Summary
1. To help new clients to enter the market
2. To build partnerships
3. To partner fund managers and sovereign wealth funds
Castles BanksFunds
Our aims
Long term trends
The recession
Recovery
Our approach
10 second tour of scotland
Golf
Monsters
Castles