mena ppt november 2009
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![Page 1: MENA PPT November 2009](https://reader036.vdocuments.site/reader036/viewer/2022062511/54ba4a294a795911568b460f/html5/thumbnails/1.jpg)
UK residential propertyNov 2009
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Contents
Long term trends
The recession
Recovery
Our approach
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The ethical, green, UK student fund70%+ of the world’s bagpipes 70%+ of the world’s oil
Edinburgh
London
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The worlds largest festival
1,000 Castles
Europe’s 3rd largest financial centre
A bit about Scotland…
500 golf courses700 islands
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UK property
BristolGlasgow Liverpool
Newcastle
Manchester DundeeEdinburgh
Nottingham
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Long term trends
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Long term trends – ownership.
Residential:• The rental market remains small• The Gov. aims to encourage its growth
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Long term trends – size and ownership.
Residential
a very large asset class, with low UK Institutional participation
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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
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Long term trends – price growth.
Residential: London and UK move in the same way
Source: Halifax and Government
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UK Property
London Property
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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
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Recession
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Recession – overall impact (peak to trough)
-40% Shares
CommercialProperty
All ResidentialProperty
Gm Residential
-15%
-45%
-11%
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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%
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Recession – recent international price trends
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Recession – recent price trends
Prices have risen for 7 consecutive months
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Recession – a positive impact on the student rental market
+10%
• Large / growing student market• 175,000 students turned away!• Shortage of student housing
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Recovery – 4 stages
‘House prices have risen for the past 7 months’ – Nationwide
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Headlines
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Our approach
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What we do
Property funds
We outperform the market by 30%
Private Clients
‘One stop solution’
• Source
• Renovate
• Furnish
• Let / manage
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About Grant Management
Worldwide client base
12 UK cities £500m / 1,850 prop. under man.
Lloyds Banking Group own 20%
ARLA members / code of practice
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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%
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How we add value
Buying well Price, location Investment model
Renovations On time – 8 weeks On budget - fixed price
Management Safety/ compliance Occupancy – 95%
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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
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Our homes
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The student market
Large university cities Secure income (Joint leases/guarantors) Universities “recession proof”
Around 75% of our properties are let to students
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• 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
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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
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Long term trends
The recession
Recovery
Our approach
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10 second tour of scotland
Golf
Monsters
Castles