Liquid Real Estate Issue 07
| Euromoney Liquid Real Estate Issue 07 The growth of CBRE’s outsourcing business is helping to propel the company through one of the toughest trading environments in its history. Chief executive Brett White explains how the global real estate services firm will emerge from this downturn on the up and up. Rachel Wolcott reports. |
Euromoney Liquid Real Estate Issue 07
Property derivative volumes have rebounded, surpassing pre-credit crunch levels. This surge is driven mainly by hedge funds and institutional investors. However, the group of end-users that could benefit the most from these instruments has largely stayed out of the market. Have direct property owners missed a trick? Rachel Wolcott reports.
Euromoney Liquid Real Estate Issue 07
Axa Reim has an impressive track record of mining gems from unpropitious soil and has identified real estate sectors it feels investors should be entering now with an eye to a market upturn. Duncan Wood reports.
Euromoney Liquid Real Estate Issue 07
It’s been all change in the real estate market since the last Euromoney/Liquid Real Estate poll was published. The cast of characters is largely the same, despite market turmoil. CB Richard Ellis has regained the top spot in global advisory and consultancy from Jones Lang LaSalle. The Los Angeles-based firm dominated in the global categories, such as valuation, letting, corporate real estate services, topping six. It also made a strong showing in western Europe and Asia.
Euromoney Liquid Real Estate Issue 07
Euromoney Liquid Real Estate Issue 07
The firm’s long-established research operation, with a worldwide network of analysts, enables it to offer client-driven information on the whole range of real estate sectors. Laurence Neville reports.
Euromoney Liquid Real Estate Issue 07
The firm has consistently proven itself in Chinese real estate in recent years, whether underwriting IPOs, advising on M&A, or making acquisitions in its own right. Chris Wright reports.
Euromoney Liquid Real Estate Issue 07
Goldman Sachs’ strong client relationships and creative flare have enabled its real estate investment banking business to strengthen its franchise while competitors struggle to stay afloat. Rachel Wolcott reports.
Euromoney Liquid Real Estate Issue 07
Bahrain-based Ahli United Bank’s real estate interests are not confined to the Gulf region. It is a growing powerhouse in property investment in Europe and an established force in Islamic mortgages in the UK. Elliot Wilson reports.
Euromoney Liquid Real Estate Issue 07
The pall that has settled in over most of Europe has weakened the growth outlook for the Nordic region, home to NCC Property Development. The Stockholm-based company is performing well and Peter Wågström, its president, says there is no lack of opportunities. Laurence Neville reports.
Euromoney Liquid Real Estate Issue 07
Indian property company DLF is expanding from a base of strength in a Delhi suburb to other booming cities. Returns will contract as interest rates and land prices rise but its high-quality product should keep it at the top of the heap. Elliot Wilson reports.
Euromoney Liquid Real Estate Issue 07
Immoeast’s recent purchase of Constantia Privatbank’s real estate division has set the stage for the next act in the Austrian investment manager’s growth story. Rachel Wolcott reports.
Euromoney Liquid Real Estate Issue 07
“This is the least costly path,” US Treasury secretary Hank Paulson told Sunday morning talk-show viewers when he was out selling his $700 billion bail-out package at the end of September. At the time, details of his plans for the US Treasury to buy impaired residential and commercial mortgage assets from banks were scant and concerns about the so-called Troubled Asset Relief Program’s (Tarp) wider impact were great.
Euromoney Liquid Real Estate Issue 07
The government bailout of mortgage agencies Fannie Mae and Freddie Mac has made the case for covered bonds in the US less compelling. After the collapse of the government sponsored entities (GSE), the need for alternative funding methods should have been clear. Instead, with the debt of both entities tightening post-bail-out and the parallel tightening in Federal Home Loan Bank’s (FHLB) debt, covered bond issuance looks comparatively expensive.
Euromoney Liquid Real Estate Issue 07
The UK non-conforming mortgage market – colloquially known as sub-prime – was the only fully fledged non-prime mortgage market in Europe. It was one of the first sectors to suffer contagion from the US sub-prime crisis. Indeed, spreads on non-conforming RMBS began to widen in March 2007 – well before the generally acknowledged beginning of the credit crisis in August of that year. What has now become of that market? Can it ever be revived?
Euromoney Liquid Real Estate Issue 07
The future of US mortgage agencies Fannie Mae and Freddie Mac is in the hands of politicians. Hours after the $200 billion bailout was announced in early September, Senate Democrats were calling for hearings to analyse the causes of the government-sponsored entities’ (GSE) demise. How the agencies look after the credit crunch abates – if they survive at all – will largely depend on whether the Republicans or Democrats are in charge after the November election.
Euromoney Liquid Real Estate Issue 07
The FTSE Group, in conjunction with the European Public Real Estate Association (Epra) and the National Association of Real Estate Investment Trusts (Nareit), is readying a new family of real estate indices for emerging markets. The indices, made up of listed property stocks, will be launched in December.
Euromoney Liquid Real Estate Issue 07
Royal Bank of Scotland’s Vesteda Residential Funding II commercial mortgage-backed securitization has shown that there is appetite for high-quality paper from well-known issuers. The €150 million five-year deal, executed in July, is the only externally placed CMBS in Europe this year, according to RBS. The single tranche of AAA-rated bonds was priced at 100 basis points over three-month Euribor.
Euromoney Liquid Real Estate Issue 07
Australia has come out of the credit crunch reasonably well: its biggest banks show no danger of collapse, it has been insulated by its heavy concentration of big resource stocks, and its housing finance industry has been built on more stable foundations than that in the US. One area that has taken a hit, though, is the listed real estate market.
Euromoney Liquid Real Estate Issue 07
Conditions are turning tough in Japanese listed real estate. The Topix Real Estate index dropped 23% from mid-May (its peak so far this year) to the end of August, and the TSE Reit index is down 32.2% year to date.
Euromoney Liquid Real Estate Issue 07
Concerns have been mounting in recent months that the liquidity schemes offered by the European Central Bank and the Bank of England are being misused by borrowers and are thwarting the recovery of market-based funding, including the MBS market. Announcements from both central banks in September addressed those concerns but their respective timing – one coming before Lehman Brothers’ collapse and AIG’s rescue and the other afterwards – has resulted in a divergence of policy.
Euromoney Liquid Real Estate Issue 07
HDG Mansur has added two funds to its roster. The HDGM International Property Fund is modelled after HDG Mansur’s HSBC Amanah Global Properties Income Fund launched in 2002. This closed-end income fund will invest in a global portfolio of properties initially targeted in markets throughout the US and Europe. Denominated in US dollars, the fund’s core investment strategy will be to invest in single- and multi-tenant properties leased to major corporations with stable or improving credit. The fund will be targeted to high-net-worth individuals and institutions and will aim to raise in excess of $200 million.
Euromoney Liquid Real Estate Issue 07
TriAlpha has brought out a property fund of hedge funds called the TriAlpha Global Property Strategy fund. It seeks to invest in hedge fund managers specializing in the global property sector. Its portfolio includes funds from Credit Suisse, Thames River and New Star.
Euromoney Liquid Real Estate Issue 07
KBC Asset Management UK will launch a Japan fund to take advantage of perceived future growth prospects. The seven-year closed-ended fund will invest principally in office, retail and industrial market sectors in Tokyo, Fukuoka, Osaka, and other big Japanese cities.
Euromoney Liquid Real Estate Issue 07
Bernd Knobloch has left Eurohypo, where he had been chief executive and chairman of the board of managing directors. Frank Pörschke who joined the German real estate lender in September 2007 has been tapped to succeed Knobloch.
Euromoney Liquid Real Estate Issue 07
GE Real Estate has appointed Mark Hutchinson to be president of the newly created GE Real Estate International, covering operations in Europe and Asia.
Euromoney Liquid Real Estate Issue 07
ING Real Estate has appointed Robert Houston as chairman and chief executive of its global investment management business. Houston has replaced David Blight who has resigned to return to Australia. Houston is a founder of ING Real Estate’s investment management business in the UK.
Euromoney Liquid Real Estate Issue 07
GMAC Financial Services and its subsidiary Residential Capital (ResCap) announced the elimination of 5,000 jobs in the US as part of its survival plan as the downturn in the credit and mortgage markets persists. The move is part of ResCap’s plan to cut back its operation and adjust its lending to refocus its resources on strategic lending and servicing.
Euromoney Liquid Real Estate Issue 07
Michael Neal has joined Henderson Global Investors as director of property for its £1.2 billion UK Retail Warehouse Fund. He comes from Goodman Property Investors, where he was responsible for the fund management of Goodman’s two retail park funds: the £550 million Goodman UK Retail Parks Trust and the Two Rivers Trust valued at over £200 million. Neal has spent over 14 years within the retail property industry, primarily working in the retail warehouse sector. He has also held positions at Hammerson, Sainsbury’s and Homebase.
Euromoney Liquid Real Estate Issue 07