We’re finding the property market of increasing international and strategic interest for our clients. Commercial property in particular is attracting innovative approaches to short, medium and long term deals. As we’ve just bought our own property in Embankment, we offer a quick fire social media #propertyfocus on the last quarter insights we can see.
It’s not just Asian investors sweeping up big deals (as reported by The Telegraph), taking advantage of sterling’s weakness and looking beyond mounting economic uncertainties. Hong Kong-based CC Land Holdings buying Leadenhall for £1.15bn is one thing – but there are reflections of this in our mid-cap space too. Having looked at the property market over the last quarter, here are five #propertyfocus thoughts from a ReSolve point of view:
- Deals to be done. Deal flows show no sign of slowing down – if anything, we are seeing increases, and this may be related to a market which seems flush with cash (as reported in a previous Periscope article), whether from UK investment funds or overseas investors looking to take advantage of the cheap pound.
- Up and up. Prices are creeping up – reflected also in rates of return. The Guardian may be reporting a challenge on the value of living in London and the South East but the prices around commercial property appear to be holding firm or increasing. Such rises along with rates increases may mean more business, especially in London, struggle to make ends meet.
- I thought we had a deal? A challenge for small businesses is that new-to-market landlords (with a bottom line focus) have limited interest in deals that have been previously agreed and we can see this having an operational economic impact on the SM part of the SME sector. We support this sector with many services and we have to be increasingly innovative in our approach to investments and restructuring. Our aim is to provide growth and development opportunities for SME’s, especially with uncertainty after the very latest reports showing weakened near term growth compared to other EU countries such as France, Italy and Germany as we go through Brexit.
- Yes landlord. Whilst pressure from landlords is increasing there may be opportunities for businesses to consider taking on landlord responsibilities as part of their capital investment portfolio. This type of investment looks a good deal where these pressures are identified and we can see similar discussions being held in a number of mid-cap board discussions over the coming months
- DIY. If we think it’s such a good idea (see above), why don’t we do it? Well we did – we’ve made the plunge and now have our own property in Embankment. Come and see us at 22 York Buildings, John Adam Street, WC2N 6JU.
Agree or disagree with our #propertyfocus? Let us know on Twitter using the hashtag.