Investing in real estate and property development has long been considered one of the most stable and profitable avenues for growing wealth. Unlike volatile assets like stocks, real estate offers a tangible, long-term investment that can yield multiple forms of return, from rental income to capital appreciation. But how can
British Land has bolstered its leading retail park portfolio with £240 million worth of acquisitions, reflecting a strong blended net equivalent yield of 7.4%. These strategic acquisitions align with the company’s plan to reinvest the £360 million from the sale of its stake in Meadowhall Shopping Centre into expanding its
Maidstone-based housing association Golding Homes has successfully renegotiated changes to agreements with its funders and investors to increase investment into existing homes. This enables the delivery of the Board-approved asset management strategy to spend £60m over the next three years to invest in improving its existing homes and help deliver
United Trust Bank (UTB) has appointed Ben Jenkinson as Head of Product & Strategy in its Property Development division. Ben has over 20 years’ experience in real estate finance holding senior positions across both public and private sectors and with lenders and agencies including Nationwide, RBS and Homes England. Ben’s
Sunbelt Rentals, the UK’s largest rental equipment provider, has invested in an additional eleven X-SOLAR SECURITY towers. This latest acquisition will strengthen their existing stock of CCTV and security equipment available for Sunbelt Rentals’ customers to hire. The X-SOLAR SECURITY towers are manufactured and supplied by the lighting tower specialist,
Seventy Ninth Group, a prominent asset management firm, has introduced a new £500m real estate bond aimed at revitalising leisure and holiday parks across the UK. The Seventy Ninth Luxury Living Six (LL6) bond is specifically designed for professional private and institutional investors, targeting the acquisition and redevelopment of UK
Prologis UK, a leading investor, owner and developer of logistics property, has bought a highly sought-after Park Royal trophy asset, expanding its existing portfolio within the capital. The acquisition reinforces the company’s commitment to London and the South East, with the latest foreign direct investment taking Prologis’ Assets Under Management
Trowers & Hamlins is delighted to have acted for Malaysian developer Gamuda Land in relation to a £100 million joint venture with Singapore-based Q Investment Partners, to establish a platform for investment into the UK purpose built student accommodation (PBSA) sector. Alongside structuring and documenting the JV, we assisted with
Leading regional housing association Bromford has retained its A+ stable credit rating from S&P Global Ratings. S&P highlighted Bromford’s “solid management expertise”, “prudent cost planning and financial headroom”, and “very strong liquidity” as key factors in their decision to maintain the A+ stable rating. The agency carried out its latest
Chancerygate has sold two urban logistics in developments totalling 275,000 sq ft of Grade A accommodation to a private investor for an undisclosed sum. The developer has sold Vantage 41, which is located in Aston Clinton, near Aylesbury, and Broadway Central in Chadderton, near Oldham. Vantage 41 is a 165,000
Investing in real estate and property development has long been considered one of the most stable and profitable avenues for growing wealth. Unlike volatile assets like stocks, real estate offers a tangible, long-term investment that can yield multiple forms of return, from rental income to capital appreciation. But how can an investor successfully navigate this landscape, particularly when considering international real estate markets or real estate-related stocks? Let’s explore the key factors that make real estate a valuable investment, along with how stock market strategies such as short squeezes can enhance profitability in this sector. Key Factors to Consider in Real Estate Investments When buying property, whether domestically or abroad, it’s essential to evaluate several key indicators that can significantly impact your potential returns. Two of the most critical are supply and demand and market growth. A market with low supply and high demand will naturally drive up property values, allowing investors to capitalize through resale or rental income. Countries experiencing rapid urbanization, population growth, and infrastructure development offer prime opportunities. In these markets, properties often appreciate quickly, allowing for high-margin returns, sometimes without even the need for major renovations. Additionally, investors should consider political and economic stability, tax regimes, and interest rates in the region. Favorable conditions in these areas can make your real estate investment much more lucrative, while unfavorable conditions, such as political instability, could jeopardize the value of your asset. Countries like Greece, Spain, and Portugal have become increasingly attractive due to their growing real estate markets and favorable conditions for foreign investors. Diversification and Stock Market Alternatives Real estate is not just limited to physical property. You can also diversify your portfolio by investing in real estate exchange-traded funds (ETFs), mutual funds, and Real Estate Investment Trusts (REITs). These stock market instruments allow you to gain exposure to real estate without the complexities of property management. ETFs can be traded like stocks, providing liquidity and flexibility, while mutual funds offer a more managed approach, with trades occurring at the end of the trading day. A relatively advanced strategy within the stock market is to capitalize on short squeeze within real estate-related stocks or REITs. In a short squeeze, when many investors bet against a stock by “shorting” it, an unexpected rise in the stock price can force these investors to buy back shares, further driving up the price. Skilled traders can profit by anticipating these movements, particularly in volatile real estate markets or REITs tied to speculative development projects. International Real Estate Investment: Key Markets For those looking to invest internationally, countries like the United Arab Emirates, Turkey, and Caribbean Islands offer unique opportunities. These regions have dynamic real estate markets driven by high tourism and expatriate demand. The UAE, for instance, offers strong rental yields, with Dubai’s real estate market growing by over 20% annually in some sectors. Additionally, several countries offer residency or even citizenship through investment programs, which can provide not only financial returns but also lifestyle and legal benefits. For example, purchasing a property in countries like Malta or Portugal can open the door to obtaining a second passport, enhancing global mobility. Risks to Consider Despite its many advantages, investing in real estate—particularly in foreign markets—can come with risks. Cultural and legal barriers may complicate the buying process, while currency fluctuations or economic downturns can affect profitability. Moreover, natural disasters or unforeseen political changes can jeopardize your property’s value. However, with the right research and planning, these risks can often be mitigated. Many successful investors partner with local experts to navigate these complexities and secure profitable deals. Conclusion: Maximizing Returns in Real Estate and the Stock Market Real estate remains a versatile and lucrative investment, offering multiple avenues for returns, whether through direct property ownership, rental income, or stock market investments like REITs and ETFs. By combining traditional real estate investing with stock market strategies such as short squeezes, savvy investors can maximize their returns and mitigate risk. For beginners entering the world of trading for beginners, starting with diversified instruments like REITs or ETFs can be a stepping stone before moving into more advanced strategies like short squeezes. With careful planning and strategic investment, real estate can be a cornerstone of a robust, diversified portfolio.
British Land has bolstered its leading retail park portfolio with £240 million worth of acquisitions, reflecting a strong blended net equivalent yield of 7.4%. These strategic acquisitions align with the company’s plan to reinvest the £360 million from the sale of its stake in Meadowhall Shopping Centre into expanding its retail park footprint. These acquisitions are set to enhance British Land’s earnings, with projections indicating an increase in FY26 earnings per share by 0.7p, fully offsetting the dilution from the Meadowhall sale. Pro forma leverage, following the Meadowhall disposal, was 34.6% for FY24, with the new acquisitions raising this by 1.8%. The six retail parks acquired since April feature an impressive weighted average unexpired lease term of five years. They are let to strong multi-channel and essential retailers, known for their stable financial performance: Simon Carter, Chief Executive of British Land, commented on the acquisitions:“We’re seeing great opportunities to invest in retail parks, and we’ve quickly delivered on our plan to fully offset the earnings dilution from the £360 million Meadowhall sale with the acquisition of £240 million in high-quality retail parks at attractive yields. With low capital expenditure requirements and 99% occupancy, our retail parks portfolio is generating strong rental growth and offers attractive cash returns.” British Land’s investment in these prime retail parks highlights its commitment to capitalising on opportunities within the retail sector, ensuring strong returns while continuing to grow its portfolio across the UK. Building, Design & Construction Magazine | The Choice of Industry Professionals
Maidstone-based housing association Golding Homes has successfully renegotiated changes to agreements with its funders and investors to increase investment into existing homes. This enables the delivery of the Board-approved asset management strategy to spend £60m over the next three years to invest in improving its existing homes and help deliver significant benefits to its customers. Finance Director David Hart said: “Getting these deals over the line is a fantastic achievement which will deliver our robust asset management strategy so that we can make a real and lasting difference to our customers. “Some of this work is already underway; homes are getting new roofs, kitchens, bathrooms, and replacement doors and windows. These improvements will transform the environmental performance of these homes and help reduce energy use and costs for customers. “Successfully securing these revised agreements with Barclays, Lloyds Bank, NatWest, and Santander UK is a wonderful achievement and we’re thrilled. It’s a testament to the strong, positive partnerships we have with our funders, and I’d like to thank everyone who’s worked so hard for many months to make it happen, including our solicitors Anthony Collins and my inhouse team.” Kathrin Nash, Relationship Director, Barclays, said: “As always, it has been an absolute pleasure to work with the Finance team at Golding Homes on this strategic covenant relaxation to enable the association to undertake its important asset management strategy over the next few years. Barclays enjoys a strong relationship with Golding Homes and is proud to be a strategic partner of the association. This is another example of our renewed focus on supporting and lending to more businesses across the UK.” Chris Yau, Relationship Director Lloyds Bank, said: “Everyone deserves access to a safe, energy efficient and lasting home and so we are proud to support Golding Homes – as one of the largest landlords in Kent – in its efforts to provide good quality social housing to the local community.” Dean Holleyman, Director of Housing Finance, Commercial and Institutional, at NatWest said: “We’re pleased to offer Golding Homes a structure that allows for greater investment in its properties. We’re committed to supporting the creation of more affordable homes while ensuring that existing houses become more sustainable. It’s great news that Golding will deliver new homes, while people currently living in their properties will be able to enjoy more environmentally friendly homes.” Aradhna Lawson, Senior Relationship Director at Santander UK, said: “We are delighted to have been able to support Golding Homes through this process which will unlock additional capacity to invest in their homes for residents. We look forward to continuing to work together in the future.” Golding customer Steve said this about his new roof: “I moved in six months ago and am really happy here. I’m really pleased that the roof’s being done. They always let me know what’s going on and I hope it’ll make the house warmer come winter.” Building, Design & Construction Magazine | The Choice of Industry Professionals
United Trust Bank (UTB) has appointed Ben Jenkinson as Head of Product & Strategy in its Property Development division. Ben has over 20 years’ experience in real estate finance holding senior positions across both public and private sectors and with lenders and agencies including Nationwide, RBS and Homes England. Ben’s expertise extends to product creation, origination, credit, transacting and restructuring. In his new role with UTB, Ben will be working with Head of Property Development Adam Bovingdon and Head of Originations – Property Development, Paul DeCroos. The role will see Ben supporting the Bank as it aims to maintain its strong growth by assisting even more housebuilders and developers across England & Wales in their endeavours to build the many thousands of new homes the UK needs. Continuing its investment in people, and in response to greater demand for development funding seen since the start of the year, the Bank also announced the appointment of Kayleigh Simpson as Manager – Property Development. Kayleigh has worked in real estate and commercial banking for 11 years with lenders including Cynergy Bank and RBS. In her new role she is assisting housebuilders operating across the North West of England with a range of development finance and developer exit solutions. Adam Bovingdon, Head of Property Development – United Trust Bank, commented: “With the economy continuing to improve and demand for development finance growing stronger, we’re keen to provide housebuilders and developers with the products and service they need to seize opportunities and build their businesses. “We have never been busier supporting projects in the North of England and Kayleigh will ensure we maintain our high levels of service to customers whilst continuing to build awareness of UTB amongst housebuilders operating in the North West. “Ben’s extensive experience in creating innovative finance solutions will help us to create a suite of new products as we continue to evolve our proposition and service to meet the changing needs of housebuilders. The future is looking increasingly bright and UTB aims to be at the forefront of specialist development finance lenders as we encourage our customers to look ahead with renewed confidence and ambition.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Sunbelt Rentals, the UK’s largest rental equipment provider, has invested in an additional eleven X-SOLAR SECURITY towers. This latest acquisition will strengthen their existing stock of CCTV and security equipment available for Sunbelt Rentals’ customers to hire. The X-SOLAR SECURITY towers are manufactured and supplied by the lighting tower specialist, Trime. Sustainability is a top priority for Sunbelt Rentals. They remain committed to working alongside their customers to reduce their carbon emissions and achieve their own sustainability goals. This latest product investment is a testament to that commitment, aligned with their sustainability strategy, Our Planet. They initially committed to purchasing twenty-two X-SOLAR SECURITY towers which were immediately livered in the distinctive Sunbelt Rentals green branding and instantly went out on hire, providing increased security at events, site compounds, building sites and more. Commenting on this latest investment, Ross Gibbons, Sunbelt Rentals Business Unit Director – Safety and Communications – commented, “With these X-SOLAR SECURITY CCTV towers, we selected systems at the higher end of the market to ensure they meet our high standards and reflect the quality and longevity of products associated with Sunbelt Rentals. We also took into account that these products have to withstand transportation to the site and harsh weather conditions.” “Trime was already one of our trusted partners, who we have worked with over many years regularly utilising their high-quality tower lights, so we know the company meets our expectations when it comes to quality and service. As part of our purchase process, all products must undergo stringent examination in the form of a structured product review to ensure they meet our high standards. Trime ticked all the boxes regarding quality, quantity, cost and guaranteed delivery window. As the UK’s largest rental company, swift turnarounds from our suppliers are important to us as we have to be able to react quickly to our customers’ needs,” added Ross. The Trime X-SOLAR SECURITY has been designed around the Trime award-winning X-SOLAR lighting towers. The X-SOLAR SECURITY is powered by four solar panels that recharge an internal battery pack which ensures zero emissions and zero noise. The X-SOLAR SECURITY features a 6-metre vertical galvanized manual mast, hydraulically operated for simple rise and fall. The mast is also fitted with a T-Bar head ready to support a choice of security or monitoring equipment. Up to four X-SOLAR SECURITY towers can be fitted onto a single truck. It also has forklift pockets and a central lifting eye to simplify transport and storage. Trime has its’ headquarters in Cassinetta di Lugagnano, near Milan, Italy, and operates two production facilities. One is based in Cassinetta adjacent to their head office, and a further facility is situated near Pavia, just south of Milan. Aside from its security tower range, the company also manufactures a wide range of sustainable lighting towers, water-recycling equipment wash bays and dust suppression products. Trime UK is based in Huntingdon, Cambridgeshire. Sunbelt Rentals is the UK’s largest equipment rental provider, with 200 depots throughout the UK and Ireland. Building, Design & Construction Magazine | The Choice of Industry Professionals
Seventy Ninth Group, a prominent asset management firm, has introduced a new £500m real estate bond aimed at revitalising leisure and holiday parks across the UK. The Seventy Ninth Luxury Living Six (LL6) bond is specifically designed for professional private and institutional investors, targeting the acquisition and redevelopment of UK holiday assets. With over 50 years of experience in real estate asset management, Seventy Ninth Group plans to capitalise on the post-pandemic market by acquiring holiday parks at significantly reduced prices. The strategy involves redeveloping these assets, with some being sold to the holiday and investment markets while others will be retained within the group’s long-term portfolio. Jake Webster, Managing Director of Seventy Ninth Group, commented: “The launch of this £500m bond highlights the ongoing success and expansion of our real estate investment portfolio. With the UK residential buy-to-let market facing uncertainty and record-high interest rates, astute investors are seeking to diversify their real estate holdings. We believe LL6 offers an excellent opportunity for our global network of 2,500 partners to achieve strong returns, and we look forward to welcoming more qualified investors in the coming weeks.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Prologis UK, a leading investor, owner and developer of logistics property, has bought a highly sought-after Park Royal trophy asset, expanding its existing portfolio within the capital. The acquisition reinforces the company’s commitment to London and the South East, with the latest foreign direct investment taking Prologis’ Assets Under Management in the UK to $9.6bn (£7.4bn), of $199bn assets managed globally by the REIT. Located in the UK’s most sought after last touch market, Prologis Park Western Avenue is a highly prominent mixed-use logistics, industrial and retail park. Benefitting from exceptional transport links, the Park has an extensive frontage and direct access to the A40 dual carriageway, providing quick access to London’s inner orbital road, motorway network and the centre of the capital. Five underground stations are accessible within 15 minutes’ walking distance. Paul Weston, Regional Head of Prologis UK, said: “This acquisition is a significant milestone for Prologis. It reinforces our strategic investment commitments to the UK industrial and logistics market here in London, supporting the growth of our national economy. “Park Royal is the most successful logistics location in the capital. Through confident and swift work with everyone involved, we’ve secured a new park which will complement our existing portfolio, ensuring that we stay at the forefront of the UK’s logistics sector.” Totalling 288,523 sq ft across a contiguous site of 16.14 acres, the estate is currently leased to 21 customers. The acquisition increases Prologis’ presence at Park Royal, and features a mix of urban logistics and retail warehousing that will appeal to a broad range of customers. Kevin O’Connor, Senior Director at DTZ Investors said: “The asset was sold to fulfil the long term strategy of the Fund managed by DTZ Investors. This transaction reflects the continuing strength of demand for prime inner London Industrial estates required to serve the capital. The Fund acquired the West Five retail park in 2016, adding it to the existing Western Avenue Business Park holding and enhancing the overall attractiveness of the asset to potential investors.” The site offers potential for future redevelopment which could expand and increase density at the site, including data centres and logistics fulfilment centres. These plans could reinforce the digital and physical infrastructure needed to support London’s growth and be developed to Prologis’ high standards of quality and sustainability. Following the acquisition, two vacant units of 3,862 sq ft and 8,030 sq ft are immediately available. Prologis was represented by DTRE, DTZ Investors was represented by ACRE Capital Real Estate. Building, Design & Construction Magazine | The Choice of Industry Professionals
Trowers & Hamlins is delighted to have acted for Malaysian developer Gamuda Land in relation to a £100 million joint venture with Singapore-based Q Investment Partners, to establish a platform for investment into the UK purpose built student accommodation (PBSA) sector. Alongside structuring and documenting the JV, we assisted with the acquisition of the JV’s first asset, a site in Woolwich to develop a 299-bed PBSA scheme alongside Hurlington Capital. When complete, the project will be one of the first PBSA schemes within the Woolwich Royal Arsenal regeneration area. Jonathan Ding, Head of International Land Acquisitions from Gamuda Land commented: “We are delighted to have secured our first PBSA development project in London together with our joint venture partners, Q Investment Partners and Hurlington Capital. The Trowers team were dedicated to the project, showing expertise, tenacity and tact to bring a complex transaction to a successful closing.” Partners Geoff Allen and Tom Reynolds, who led the Trowers & Hamlins team between our Malaysia and London offices, commented: “It is fantastic and a privilege to have been able to support Gamuda Land as it continues to expand its UK real estate footprint across a range of asset classes. As the first international law firm to open an office in Malaysia many years ago, and having opened an office in Singapore earlier this year, our unique regional presence allows us to provide an enhanced offering to support the flow of capital from these two important markets into the UK. Supported by experts who have worked across our international and UK businesses for many years, this project also strengthens our long-standing track record of advising Malaysian developers and investors in relation to their UK real estate assets.” Specialist support was provided across our Malaysia, Singapore and London teams, in particular by Ian Dobinson, Sean Donovan-Smith (London), Abdulhaq Mohammed and William Barakat (Singapore) on corporate, financial services and structuring, Neil Biswas (London) on real estate, and Nicol Ong (Malaysia) on debt financing. Building, Design & Construction Magazine | The Choice of Industry Professionals
Leading regional housing association Bromford has retained its A+ stable credit rating from S&P Global Ratings. S&P highlighted Bromford’s “solid management expertise”, “prudent cost planning and financial headroom”, and “very strong liquidity” as key factors in their decision to maintain the A+ stable rating. The agency carried out its latest review of the Gloucestershire-based housing association earlier in July, examining the progress against its new strategy and business plan which sets out Bromford’s ambitions to build 11,000 new homes by 2032 and to invest £2 billion in maintaining and upgrading its existing homes, including improvements to make them more energy efficient. Bromford recently announced that it had entered into discussions with Flagship Housing Group to create one of the largest housing associations in the country, with 80,000 homes across the central belt of England and the capacity to build up to 2,000 new homes every year whilst maintaining a sector leading A+ / A2 credit rating platform. S&P Global have reviewed the combined organisation’s initial financial analysis and confirmed it continues to reflect an A+ rating, commenting: “Bromford’s currently strong financial indicators would mitigate pressure of the potential business combination, and hence we do not expect it to have an immediate impact on our rating on Bromford.” In the S&P report published yesterday, the agency pointed to the flexibility in Bromford’s robust financial plans around its investment in existing and new homes among the reasons for the housing association retaining its rating. The global ratings agency, said: “The affirmation of the A+ rating reflects our view that Bromford’s prudent cost planning and financial headroom, along with expected improvement in economic conditions, will support the group’s solid credit metrics.” The S&P report, added: “We view favourably Bromford’s flexibility over its investments in new and existing homes. With a proven track record, we expect the group to continue generating some cost efficiencies. This, along with the solid quality of the group’s existing assets, will provide Bromford the headroom to adjust costs, if needed.” Earlier in the year, the housing association held a dedicated workshop with the agency and a small group of its customers, who shared their experiences living in a Bromford home and discussed how this is taken into account by credit rating agencies. Bromford’s director of treasury Imran Mubeen said: “We’re delighted that S&P has recognised our performance over the past year by re-affirming our A+ rating with a stable outlook. The A+ stable rating is also testimony to the opportunity and capacity we can create through the proposed merger with Flagship, with £5 billion of new funding over the next 15 years delivering over 30,000 new, affordable, energy efficient homes perfectly curated within our existing financial framework and A+ rating envelope. We arrive here by design and through intent, with a full shadow credit analysis run on every iteration of the business plan we produce. This is particularly important at a time when we are seeing continued pressure in our sector and a migration to the weaker single A or BBB. “Throughout the rating process, we believe it’s important to showcase how we are delivering for our customers. It is also our responsibility to explain our business plan and treasury strategy to them. That’s why we were pleased to give S&P the opportunity to meet our customers during the year, allowing the agency to hear directly from customers about their lived experiences in their homes and their engagement with our broader services. “The confirmation of this rating, along with our A2 rating from Moody’s will support us when we return to the market to seek additional funds, helping us achieve our goals of tackling the housing crisis by building more homes, investing in our existing properties, and progressing towards net zero, all underpinned by sector leading funding deals.” Bromford has retained its rating after a year in which it has successfully unlocked its balance sheet capacity to deliver new funding through expanding its portfolio of revolving credit facilities to £450 million, securing new private placements with UK and US investors worth £100 million, and co-creating a new pathway to funding with Legal and General Investment Management worth £50 million. In June 2024, Bromford also completed a £200 million sustainability linked loan with key funding partner NatWest. Read the full report from S&P Global Ratings. Building, Design & Construction Magazine | The Choice of Industry Professionals
Chancerygate has sold two urban logistics in developments totalling 275,000 sq ft of Grade A accommodation to a private investor for an undisclosed sum. The developer has sold Vantage 41, which is located in Aston Clinton, near Aylesbury, and Broadway Central in Chadderton, near Oldham. Vantage 41 is a 165,000 sq ft development is located four miles east of Aylesbury, sitting directly off the A41 with excellent road connectivity to the M25 and M40. The scheme comprises 16 units ranging from 4,800 sq ft to 43,600 sq ft. Located in Chadderton, near Oldham, Broadway Central has eight unit totalling 110,000 sq ft. It comprises seven units across two terraces ranging from 7,600 sq ft to 18,200 sq ft and one stand-alone unit of 27,000 sq ft. The development s six miles north of Manchester city centre and a short drive away from the M60 and M62. It is part of the wider 121-acre mixed use Broadway Green, which is delivering 700,000 sq ft of employment space and 500 new homes. Both Vantage 41 and Broadway Central achieved BREEAM Very Good rating and all properties have a mixture of EPC A and B ratings. In addition, all units benefit from electric vehicle charging points and are constructed from high-performance building materials and 15 per cent roof lights to reduce CO2 emissions and occupational energy costs. Chancerygate senior development director, Matthew Connor, said: “These deals are testament to the hard work and expertise to develop Vantage 41 and Broadway Central and will help satisfy the strong demand for urban logistics accommodation in the respective regions. “The sales are also further evidence of our product’s sustainability credentials, flexible sizing and proximity to key infrastructure and transport hubs, which are attractive to both investors and occupiers.” Founded in 1995, Chancerygate is the UK’s largest urban logistics property developer and asset manager and the only one operating nationwide. The company currently has around 1.16m sq ft of urban logistics space under construction or ready for development across ten sites in the UK ranging from Edinburgh to Croydon. JLL advised Chancerygate on the sale of Vantage 41. For more information visit www.chancerygate.com Building, Design & Construction Magazine | The Choice of Industry Professionals
