Flodrive Holdings, represented by international real estate advisor Savills, has brought to market the Dunollie Hotel and the Kings Arms Hotel on the Isle of Skye for an undisclosed sum. The properties are available to purchase separately or as a pair. The three-star Dunollie Hotel is situated on Main Road
23 April 2016 – by David Hatcher Morgan Stanley Real Estate Investing has put its stake in the Walkie Talkie up for sale. The seller hopes to achieve bids as high as £150m for its 11.7% ownership in 20 Fenchurch Street, EC3, which would reflect a yield close to 3.1%
Calls for the government to abandon Land Registry privatisation for good Andrew Lloyd, Managing Director of Search Acumen, calls on the Government to drop its plans to privatise Land Registry as the proposal gets dropped from the Neighbourhood Planning and Infrastructure Bill. Mr Lloyd, Search Acumen’s Managing Director, had this
A chronic lack of supply is fuelling a regional growth in house prices and sales volumes in New Zealand, according to the latest monthly index report. Sales volumes hit new levels and median house prices reached new record highs across more regions of New Zealand than ever before, according to
©Bloomberg LafargeHolcim took a SFr3bn ($3.1bn) charge in the fourth quarter of last year — blamed partly on deteriorating markets in Brazil, Russia, Iraq and China — but the cement group said it remained on track to achieve three-year profit and cash flow targets. Since being formed in July last
Housing transactions could go down by 10% if the UK votes in favour of leaving the European Union, according to Hometrack’s latest opinion. The report suggests that the current level of growth in house prices is just over 10% in the city, in comparison to 6.6% a year ago before
Anglian Water has blamed tighter price controls for its 24.8% fall in operating profits. The increasing operating costs and regulatory price reduction have been specified as the primary reasons for the profit drop. For the year ending March 31 2016, the firm posted a £340.4 million underlying operating profit for
Construction firm Wates has been chosen to deliver the planned £40 million redevelopment of the Metropolitan Police Station at Hammersmith. RSP Arhitects have come up with the project plans and will mean a full six storey refurbishment for the Shepherd’s Bush Road Grade II listed building which was first constructed
International real estate advisor Savills says that the prime office rental gap between London and Leeds is the widest on record. The latest Spotlight – Leeds Offices report by Savills shows that in Leeds city centre, Grade A rents are currently £27 per square foot (£291 per square metre), in
Significant progress has been achieved for the £184 million development in Corton, South Ayrshire. South Ayrshire Council has provided a detailed planning permission report for the most important parts of the Corton neighbourhood development project. The Corton site will represent phase one of delivering the full set of plans set
Flodrive Holdings, represented by international real estate advisor Savills, has brought to market the Dunollie Hotel and the Kings Arms Hotel on the Isle of Skye for an undisclosed sum. The properties are available to purchase separately or as a pair. The three-star Dunollie Hotel is situated on Main Road in Broadford, Skye’s second largest village, and features 86 bedrooms plus a restaurant, lounge and two bars. It dates back to the early 1900s and offers a waterside location with extensive views over Broadford Bay. The Kings Arms was built in the 17th Century, making it one of Skye’s oldest hotels, and is located on King Street in the harbour village of Kyleakin. Following modern extensions, the property now features 81 bedrooms as well as a lounge, bar and restaurant. The hotel is currently operated seasonally, making it a manageable business to run, with scope to extend the opening hours into the winter months. Tom Cunningham, hotels director at Savills, comments: “These well known hotels have an established leisure trade thanks to the tens of thousands of visitors who flock to the picturesque Isle of Skye each year. The UK’s regional hotel market continues to be buoyant and we are expecting strong investor interest in the properties both individually and as a package.” Source link
23 April 2016 – by David Hatcher Morgan Stanley Real Estate Investing has put its stake in the Walkie Talkie up for sale. The seller hopes to achieve bids as high as £150m for its 11.7% ownership in 20 Fenchurch Street, EC3, which would reflect a yield close to 3.1% and value the building at £1.3bn. However, sources close to the other owners of the building valued it at closer to £1bn, which would put MSREI’s stake in the region of £120m, reflecting a 4% yield. All the content from this weekís magazine, including this article, is available in the new app. The sale is an opportunity for investors to own a slice of one of Europe’s best-known trophy buildings and gain exposure to a steady income stream. The building is almost fully let and generates revenue of nearly £40m per year. The minority interest, however, provides little strategic control. MSREI’s divestment reflects the success the 37-storey skyscraper has achieved since speculative development began at the bottom of the market in 2011, and is likely to result in it taking a substantial profit. Click here to read the full story Source link
Calls for the government to abandon Land Registry privatisation for good Andrew Lloyd, Managing Director of Search Acumen, calls on the Government to drop its plans to privatise Land Registry as the proposal gets dropped from the Neighbourhood Planning and Infrastructure Bill. Mr Lloyd, Search Acumen’s Managing Director, had this to say: “The government is thinking again on Land Registry privatisation. If the abandonment of the sale is confirmed, this will be both a victory for common sense and a vindication of the property industry’s spirited campaign against the proposal over the past twelve months. Here at Search Acumen, we welcome this step in the right direction but the matter has not yet been concluded – the threat to both the industry and the freedom of open data remains. Now is the time for property professionals to press the government on the sale and reiterate that it is not only bad for the industry, it is bad for everyone who owns or aspires to own a property. Land Registry has come in for quite a bit of criticism over the years for being outdated, old fashioned, inefficient. That’s part of the rationale for a sale. But over the past few years things have actually moved in a much more positive direction, with Land Registry making great strides in commercialising its data, and in grasping the potential of ‘Big Data’. This has allowed innovators and disrupters in the private sector – companies like Search Acumen – to transform the industry for the better through new products that utilise Land Registry data. Entrepreneurs and creative minds are unlocking the opportunities buried in big data, and deploying that acumen to create efficiencies for property and legal professionals. Land Registry is committed to going further and release more of its data sets in the near future, so why privatise and jeopardise all of this progress? As the UK follows the post-Brexit journey and the housing crisis continues, I hope that the Land Registry is used efficiently to help strengthen our industry rather than add to our problems.” Source link
A chronic lack of supply is fuelling a regional growth in house prices and sales volumes in New Zealand, according to the latest monthly index report. Sales volumes hit new levels and median house prices reached new record highs across more regions of New Zealand than ever before, according to the latest figures from the Real Estate Institution of New Zealand. Record median prices were reached in Waikato/Bay of Plenty, Taranaki, Canterbury/Westland and Otago. The report explains that this shows the growing halo effect of rising prices around New Zealand is strengthening in the regions where it is already present, and moving on to new regions, driven by a chronic lack of supply. On a seasonally adjusted basis the number of dwellings sold in April 2016 rose by 12.8% compared to March, indicating that the normally expected drop in sales between March and April was far smaller than usual. And compared to April 2015, all regions recorded increases in sales volume. At the same time, the availability of properties for sale has fallen by over one third over the past 12 months, with a number of regions seeing declines of more than half. Days to sell, another measure of demand has also fallen by more than 20% over the past 12 months in nine of the 12 regions. The national median price was $490,000 for April, an increase of $35,000 or 7.7% on April 2015, and down 1% compared to March. Excluding the impact of the Auckland region, the national median price rose $29,000 to $382,000 compared to April 2015. REINZ chief executive Colleen Milne said that the April data confirms the continued strength of the real estate market right across New Zealand, driven by a chronic lack of supply. ‘Anecdotal evidence suggests that investors outside of Auckland are increasingly looking to real estate investments to improve their yields compared to bank deposits. First home buyers are also taking advantage of low mortgage rates, putting pressure on the number of properties available for sale,’ she pointed out. ‘The strength of the seasonally adjusted level of sales demonstrates that the year on year median house price rises, excluding Auckland, underlying demand for real estate across New Zealand remains strong, with every region recording an increase on a seasonally adjusted basis,’ she explained. There were 8,568 unconditional residential sales in April, an 18.4% increase on April 2015 and a 10.1% decline on March. On a seasonally adjusted basis, the number of sales rose 12.8% from March to April. The strong increase in seasonally adjusted sales reflects a smaller decline in sales between March and April than is normally the case. Over the past 10 years the average decline between March and April has been 16.6%. Sales volumes excluding Auckland, were up 28.8% on April 2015 and up 29.4% on a seasonally adjusted basis. All regions, apart from Northland, Auckland and Taranaki are showing in excess of 20% annual sales growth. Indeed, Auckland saw the number of sales increase by 1.7% compared to April 2015, the first annual increase in Auckland’s sales volume since October 2015. Compared to April 2015, all regions recorded increases in sales volume, with Hawke’s Bay recording the largest increase of 50%, followed by Southland with 49% and Otago with 35%. The national median house price rose $35,000 or 7.7% to $490,000 from April 2015 to April 2016. Compared to March the national median house price fell by $5,000 or 1% and excluding the Auckland region, the national median price rose $29,000 or 8.2% compared to April 2015. On a seasonally adjusted basis, the national median house price rose 7.7% compared to April 2015. Central Otago Lakes recorded the largest percentage increase in median price compared to April 2015, at 25.2%, followed by Waikato/Bay of Plenty at 19.1% and Taranaki at 15.1%. In comparison, Auckland recorded the fourth largest increase in the median price at 12.8%. Taranaki recorded the largest percentage increase in median price compared to March, with an 8.7% increase, followed by Hawke’s Bay with a 4.8% increase and Manawatu/Wanganui with a 2.6% increase. BOOKMARK THIS PAGE (What is this?) Source link
©Bloomberg LafargeHolcim took a SFr3bn ($3.1bn) charge in the fourth quarter of last year — blamed partly on deteriorating markets in Brazil, Russia, Iraq and China — but the cement group said it remained on track to achieve three-year profit and cash flow targets. Since being formed in July last year after a lengthy merger process, the Zürich-based business has seen its share price fall sharply on investors’ concerns about sluggish global growth and post-deal integration problems. More On this topic IN Construction Last month, Wolfgang Reitzle, chairman, who had helped save the merger from collapse, said he would stand down in May to become chairman of the supervisory board of Linde, the German industrial company where he was previously chief executive. On Thursday, Eric Olsen, chief executive, told investors that the “most challenging dimensions of the merger are now behind us”. Debt-reduction plans and synergy savings were ahead of schedule, he said, while “solid progress” had been made towards performance targets set late last year. These included at least SFr10bn in cumulative free cash flow generation from 2016 to 2018, and operating profits of SFr8bn in 2018. “I have a three-year plan and we’re absolutely on track,” Mr Olsen told the Financial Times on Thursday. In 2015, the group’s adjusted operating profits fell by a smaller than expected 4.6 per cent to SFr5.75bn. However, the fourth quarter resulted in a net loss of SFr2.86bn because of the SFr3bn charge, which LafargeHolcim attributed to asset impairments and “changing market conditions” in Brazil, Russia, Iraq and China. Analysts from Bernstein said such a charge suggested “a permanent adjustment to earnings potential” — adding that “we struggle to reconcile this with management’s confidence about achieving its 2018 targets”. Mr Olsen, however, argued that the exceptional charge was “a natural consequence” of a post-merger portfolio review, and would not affect earnings potential. He was cautiously upbeat about 2016 prospects, expecting a 2 to 4 per cent expansion in demand in LafargeHolcim’s markets. “The so-called broad-based emerging market crisis, we’re just not seeing in the underlying activity in our markets,” he told journalists in Zürich. Last year’s results were helped by a 12 per cent rise in adjusted operating profits in North America, to SFr1.18bn. LafargeHolcim now expects a 4 to 6 per cent expansion in that market in 2016. While the group reported severe pricing pressure in some countries — including Switzerland, where it was hit by the strength of the franc — action had been taken to manage costs in such markets, Mr Olsen said. Although China’s cement market was expected to contract in 2016, he still expected earnings growth there on the back of cost-cutting. Net financial debt fell from SFr18.3bn in September, to SFr17.3bn at the end of last year — beating the group’s SFr17.5bn target. Capital expenditure in the second half of last year was in line with the target of less than SFr1.4bn and SFr200m lower than the previously announced plan. LafargeHolcim also said it had reached agreements to dispose of stakes in operations in South Korea and Saudi Arabia, as part of a SFr3.5bn divestment programme. Copyright The Financial Times Limited 2016. You may share using our article tools. Please don’t cut articles from FT.com and redistribute by email or post to the web. Source link
Housing transactions could go down by 10% if the UK votes in favour of leaving the European Union, according to Hometrack’s latest opinion. The report suggests that the current level of growth in house prices is just over 10% in the city, in comparison to 6.6% a year ago before the General Election. Transactions have seen a surge recently before the changes to stamp duty, resulting in many cities noting a monthly house price growth spike. For instance Cambridge posted an increase of 15.8%, with the only UK city to buck the rising trend being Aberdeen which posted a 6.1% downturn. Hometrack, however, argues that should a ‘Brexit’ vote be successful at the upcoming EU referendum, we could see a reduction of 5% to 10% in housing transactions, with London experiencing a particularly negative impact. In contrast, by choosing to stay in the EU, Hometrack insists that market confidence would receive a boost. It anticipates that large regional cities like Birmingham, Leeds and Manchester benefiting most, as these are cities with growing demand for housing and the current house price growth rates would likely be maintained. In addition, Hometrack said that in the ten year period prior to 2007, volumes of sales went down four times in London, by up to 15%, thus showing the city’s proneness of being impacted by external factors, particularly following swift price appreciation periods. Hometrack Insight Director, Richard Donnell, said that the housing market’s future will be dictated by whether the UK votes to stay in or leave the EU . Mr Donnell added that their analysis of the housing market’s response to external factors across the last two decades shows that a leave vote may mean a 5% to 10% decrease in housing turnover and the city that would suffer the most would be London.
Anglian Water has blamed tighter price controls for its 24.8% fall in operating profits. The increasing operating costs and regulatory price reduction have been specified as the primary reasons for the profit drop. For the year ending March 31 2016, the firm posted a £340.4 million underlying operating profit for the year, a fall from the £452.6 million profit made in the year before. In addition, the year’s revenue was £1,185.4 million, that’s a decrease of £58.9 million from the previous year and is chiefly a reflection of the reduced number of customer bills that were introduced on April 1 2015. This reduction in customer bills was introduced to ensure the water company fell in line with the regulation review of price setting. Customer growth in the area offset this partially. Furthermore, the year’s operating costs went up to £560.6 million, an increase of £36.7 million (7%) in comparison to the 2015 figure of £523.9 million. The company said that rising minor repair fees have contributed to the bulk of this increase, which was formerly capitalised before the introduction of the new infrastructure, in particular the newly established accounting rules. As a result, this has led to further volatility in Anglian’s costs of operating the business. The year’s bad debt charge has been reduced to £31.9 million, a 3.6% decrease from the previous year (£33.1 million in 2015). The firm has put this down to an improvement in customer credit management along with the effects of tariff reduction in the year. Across the five year period of AMP6, the company is planning to pump over £2 billion into its operating systems via its investment programme. Anglian said that the business retail sector of the company, ‘Anglian Water Business’ (AWB) is preparing in advance for the market opening of supplying to non-household customers by this time next year.
Construction firm Wates has been chosen to deliver the planned £40 million redevelopment of the Metropolitan Police Station at Hammersmith. RSP Arhitects have come up with the project plans and will mean a full six storey refurbishment for the Shepherd’s Bush Road Grade II listed building which was first constructed in the 1930s. Flexible office space and an adjoined newly-built 30 cell custody facility will also be included in the construction, as well as Mounted Branch stables with 18 loose boxes provided and a car parking facility in the basement. Construction is set to begin in November this year, provided the plans get the green light from the planning committee, with work set to be finished by the end of 2018. The Southern Construction Framework appointed construction company Wates to deliver the project. The Metropolitan Police Service will be operating the new development which will be in close proximity to another Wates construction, the office buildings in the middle of Hammersmith – Development Securities’ Hammersmith Grove. This latest redevelopment of the police station comes as part of a widespread re-organisation of West London policing which will also see Fulham Police Station shut down. It is hoped that police running costs will be reduced by £400,000 a year thanks to the reorganisation of Metropolitan Police services. Roger Harding, director at Met Police estates, said that the Hammersmith site is one of the most important for the Met Police Service but insisted that its current set-up was failing to function in the modern world of policing and that significant investment to the site was much needed. Mr Harding added that MPS is pleased to be working with Wates on the project due to the firm’s proven record of expanding and refurbishing its custody centres and police stations. He also said that more money will now be put into front line policing thanks to developments such as the one at Hammersmith.
International real estate advisor Savills says that the prime office rental gap between London and Leeds is the widest on record. The latest Spotlight – Leeds Offices report by Savills shows that in Leeds city centre, Grade A rents are currently £27 per square foot (£291 per square metre), in comparison to £95 per square foot (£1,023 per square metre) in London. The company say that this will play a big part in the attraction for ‘north-shoring’ firms that are looking for cheaper property costs and reduced staff costs away from the capital. Savills’ commercial research team associate director, Clare Bailey, said that Leeds is providing a very attractive alternative as rents in London continue to rise at a rapid rate. Ms Bailey added that nearly 10,000 newly created office jobs are to be generated in the city across the next five year period, due partly to some major organisations relocating office functions from London to the north. She also said that although the firm expects Leeds prime rents to increase to £30 per square foot (323 per square metre) in the next three years, the city will still be able to provide a big discount in rental costs when compared to those in London. The report by Savills shows a strong 2016 first quarter take up in Leeds of 121,178 square feet (11,257 square metres), which is up by over 50% on the same period in the previous year. This increase is thanks to a number of major deals, such as the Hestview Ltd (Sky Bet) lease of 39,605 square feet office space. The strong take up of space has provided the catalyst for further developments and Savills say that there is currently almost 700,000 square feet of office space being constructed in Leeds city centre, 47% of which has already been pre-let for this year.
Significant progress has been achieved for the £184 million development in Corton, South Ayrshire. South Ayrshire Council has provided a detailed planning permission report for the most important parts of the Corton neighbourhood development project. The Corton site will represent phase one of delivering the full set of plans set out by the South East Ayr Development group, which will eventually deliver almost 3,000 new homes in three phases across the next three decades. The next two phases are set to take place in Cockhill and Alton, across a site of 450 acres. The Corton part of the master plan for South East Ayr will be made up of 750 homes, leisure and community facilities, business units, pubs and restaurants, shops, a neighbourhood centre, hotel and a new primary school. Designers are envisaging that the Corton development is set to bring a total investment of around £184 million to South Ayrshire. LXB, a real estate investment company, has recently been given the go ahead to build a new Sainsbury’s supermarket, along with a petrol filling station and an adjoined car park. Permission has also been given to construct a new bridge across the A77 for cyclists, pedestrians and equestrian, which will link into the network of footpaths. The commencement of the 155 acre Corton part of the project and the supermarket construction will unlock the rest of the development concepts by financing the infrastructure construction which is needed to open up the site and service it. As well as the works on infrastructure to build the overbridge and a new A77 roundabout to give easier access to the site, work is set to go ahead to upgrade four other A77 roundabouts. Transport Scotland will receive a sizeable contribution for required upgrades in the future to the close by trunk road network.
