Real Estate Comment 30-01-2007 :  

Contrary to the many professional City operators calling the top of the market, in an ill-disguised effort to pause for breath and take profits on the recent surge in commercial property investments; stock and real estate management firms, it would appear that the retail investor is largely ignoring the advice. 

The attraction of REITs has largely not been lost on investors who have been enticed by the notion that many REITs status firms, are obliged to redistribute up to 90% of their profits back to their shareholders. 

Moreover, whilst for years the commercial property sector was seen as a slow burner, the irresistible prospects of rapid and well financed sector consolidation would appear to making the sector yields more sustainable and would appear to have a great elasticity of demand. 

My advice would be to ignore the myriad “professional” voices crying its all over….methinks that far too many “amateurs” are getting into the act, for the taste of the former, who would like to be the sole beneficiaries of this gold rush. 

Buy with a long term view.

Raser

Short: In a deal worth £72mn GBP the former headquarters of the Midland Bank (Now HSBC) have been bought by a former Russian Deputy Finance Minister Vladimir Chernuklhin.

The building located at 27-35 Poultry was sold through Knight Frank (the commercial Property consultant) and is expected to give co-owners Paul Kelmsley and HBOS a substantial profit.

Source

Footfalls

Construction group Galliford Try will hold their AGM on Friday

source www.gallifordtry.plc.uk/

Short: US hotel operator Hilton Hotels Corporation is expected to exchange contracts for the sale of its Hilton Metropele Hotels in London and Birmingham for £420 mn GBP to Tonstate Property Group.

Tonstate are said to be keen to retain the operator as de facto manager/operator after the purchase.

Source

Footfalls

Tesco, the UK’s largest retailer is to trial a scheme to build homes for its staff. In what many might see as a olive branch to accusations that it has been using its considerable land in an allegedly anti-competitive manner presently being reviewed by a government commission, the retail behemoth is to build 250 homes and other social developments in Streatham South London, alongside one of ts flagship stores.

One hundred of the new homes are earmarked for “key workers” (essential staff who cannot afford London property prices).

Whilst 13 of the new homes will be specifically allocated on first refusal to Tesco workers the remaining units are to be sold to a local Housing Association for the purposes of day to day management.

The company says that if the scheme is successful, it intends to pursue further such developments. 

Sopwith Camel