House Of Fraser’s iconic headquarters in Howick Place, London has been sold to AIM listed property developer for a fee of £60mn GBP.

In an effort to limit the considerable damage caused by the country’s government stated policies aimed at controlling the inflow of foreign monies, the Thai government was quick to temper the rules on foreign small holding property investors.

The new rules had originally sought to put the damper on the large capital inflows into the country’s capital markets, which is then taken out as soon as the profit target had been achieved. Such large capital outflows could have potential disastrous impact on the capital infrastructure.

On the upside this drove equity prices to some of the strongest levels in south east Asia. On the down side, the same dynamic is also driving inflation into the countries currency, making the exports more expensive.

The Thai government has viewed the recent boom in the country’s equity markets as driven by speculators (and who would argue with that). However, whilst this type of foreign investment is viewed as detrimental, the steady flock of small holding property investors represents a sturdy source of non inflationary economic stimulus and the authorities have been keen to let such investors know that these measures h were not designed to apply to them.

The holiday home industry in Thailand has become one of that country’s greatest economic drivers and provides considerably employment for locals.’

Franz Pederson

©   FP Realty Press

Personal Comment :

Hence the rampant scepticism and contempt with which many self aggrandising “experts” scorn the policy explanations emanating from central bankers and therein the latter’s decisions are based around. 

Evidently no expert worth his/her salt predicted the latest “shock” 25 basis point increase implemented by the UK central bank today. 

The white noise from the financial reporting community about what a “shock” the quarter point rise represented, implied that they knew nothing about this eventuality, since most predicted rates on hold for at the first quarter of 2007. Yes folks these are the same fools that predicted, a housing market crash in 2006….which by all accounts the world is still awaiting…). 

The shock is that anyone trust the judgements of these people who speak of “black holes”, unreliable figures, poor projections etc when they do not possess all the facts. 

The litany of overpaid smartarses that made grandiose predictions about rates on hold for the near term must have seen their careers flash before their self important eyes…indeed the cries could be heard throughout the City Of London! I

ts all very well slagging off the Politicians and bureaucrats, but at least have an alternative and accurate base of your own. Otherwise the egg on your face will assume gargantuan proportions. Still don’t expect tea and sympathy form the gathered ranks of armchair economists…their predictions were not wrong or ill informed….the Bank’s monetary policy committee is at fault, you know!  

Oh yes there is simmering revenge afoot…you just wait! They’ve [monetary policy committee] all gone mad and so the media pundits spin will go: we were right all along! 

Meantime the land regales in copious New Year mirth whenever we read a headline resembling: City Economist Buys Prime Real Estate With Annual Bonus……[Ed: You’re just jealous, that your stupidity does not pay as well!] 

The UK’s interest rates now stand at 5.25%. Whilst still historically low, this represents quite a wake up call to already overstretched homeowners, though is unlikely to make a dent in the premium real estate market where price elasticity that a small interest rate hike such as this represents.

You can please some of the people some of the time, but cant please all of the people all of the time….it is something of a well worn cliché, but never more appropriate than when 90% of your shareholders are perfectly happy with matters and there is one that just aint best pleased.

The Countrywide Board’s approval of the £940 mn GBP management buyout leveraged by private equity firm 3i, seemed far to smooth. It is no surprise then that major shareholder Artisan Partners, US investment giant recently complained that the agreed sale price of the firm was “undervalued” and clearly “inadequate” citing all manner of measures to underline the point.

In an attempt to assuage these allegations, Countrywide chairman Christopher Sporborg has countered that should the deal fall through then the shares will tumble saying: “It is this or back to 400p-a-share, the implication therein, that the deal values the shares at an attractive 30% plus premium of what the market thinks.

The vote to approve the deal occurs later this month, where the board is expected to get the 75% quorum in favour of the buyout.

TBrewer

People have begun to realise that installation art and practical illuminations can be used just as easily in residential spaces.

More homeowners are choosing fibre optics, glass and woven metal light sculptures for their homes. It seems that home improvers and we amateur interior designers and decorators see no limits to how far, we are willing to go, to own and instal unusual lighting technology.

NB