DUSSELDORF. Bargain hunters have in the past year, the initially very high returns on the UK property market quickly pushed down. You always paying higher prices at almost unchanged rents. "The prices of premium properties will rise in the UK in the first half of the year, as more investors enter the market. However, the increase will not be as strong as in the last six months," is George Tindley, a fund manager at Cordea Savills, a subsidiary of the international property services provider Savills, is convinced.
Now go in a second wave after the crisis fund on the market, their sponsors for safely losing any revenue above average returns. One such fund is the one billion pound ‘UK Income & Growth "by Cordea Savills, which today is officially launched. He is by Cordea Savills to 3.5 billion pounds of assets under management (raising about 3.1 billion euros). The Fund will annually distribute more than five percent.
The same group of investors is the "UK Property Fund," being prepared to address the Schroder Property. Schroder manages about 7.5 billion pounds of real estate assets. "It is crucial for the investment, the difference between the initial yield and the riskless interest rate," said Neil Turner, head of property funds management in Schroders in Frankfurt. The rental yield on purchase would yield in the UK of 7.25 per cent to 6.5 per cent, while the yield on ten-year British government bonds will climb from currently around four to up to five percent, he says. Although a ten-year British government bonds is not entirely risk-free paper, it serves as a benchmark for investments in the UK property market.
That they have denied their clients through the late late entrants in the UK upside, neither see nor Tindley Mr Schroder-Turner. Rather, their customers, such as pension providers, six months ago, the risk of a UK investment was still too high.
When Cordea fund the planned low level of debt falls to 30 percent. "Our discussions with potential investors have shown that they want core properties with far less debt." "Core" systems called the real estate industry buildings in prime locations with excellent facilities that are rented to long term tenants with good or very good credit rating.
The low proportion of debt in Cordea funds means that investors hochzuhebeln refrain from using its return on equity remains low interest rates. More typical of funds to focus on insurers and pension providers, a ratio of equity to debt financing from one to one. According to this model is the Schroder funds with a total volume of 600 million euros knitted. He also wants to keep down the risk posed by the acquisition of core objects.
Cordea and Schroder are so trendy. INREV, the European association for non-listed real estate investment vehicles, a survey has found that nearly 70 percent of preferred institutional real estate investors, "core" fund. A year ago there were only 38 percent.
Both funds are positioned so that they are in German insurers to homes ratio – an important sales argument. Cordea has acquired the first three investors already, Schroder Property wants to start as soon as additivity of pledges for the UK Property to 100 million euros.
How great is the confidence in the British market is now showing other examples. Aberdeen has just property-UK chief executive John O? Connor announced that he hoped in the next few months in Britain to invest 500 million pounds for its customers. And the real estate developer Irvine Sellar wishes for 2012 to cope hending, "Shard" ( "shard") baptized largest skyscraper in Western Europe an annual rent of up to 70 pounds per square foot (qf) require. Eleven qf are about one square meter. These are about 60 percent more than at present for top office space is paid. No wonder that now the developers are active again. Land Securities, Britain’s largest real estate corporation has announced to put 655 million pounds in the construction of three objects in London’s West End.