Saturday, 19 November 2016

What does Brexit mean to UK Property Investors & Developers?

A commentary from Rick Nicholls, Managing Director, Bastien Jack Group Ltd, UK property developer.
In short, we have opportunity.
Initial shock at the prospect of leaving the EU sent the markets into decline, but have they not reacted pretty much as anticipated? Never letting a crisis go without opportunity, selling high to force a low, and then buy back? Since then there has been some indication stability is returning to the markets though GBP to USD and Euro are still trading lower. This is a good thing for UK exports, making them more competitive, assisting those companies that rely on export markets to grow. The UK vote for Brexit probably doesn’t mean that the housing market in the UK is about collapse either. While some uncertainty in the short term may reduce house price growth, for the longer-term property investor, this could be a good opportunity for investing.
The foreign property investor has a boost in value-for-money
In the 24 hours after the Brexit vote, the value of sterling fell on foreign exchange markets. Not by as much as predicted but by around 6% against the euro and 8% against the dollar. As I’m writing this, the pound is now worth €1.11. This fall means the European property investor has more sterling to spend.
Demand for property, specifically in London from foreign investors is still likely to increase, interest has been high from China and Asia as their currency exchange has automatically allowed them a discount on current prices. This though is likely to bea short window of opportunity as we see markets recover from the initial shock.
Domestic demand will remain strong
Demand from home buyers and renters probably won’t collapse either.
There is concern that demand for housing will fall in London and the UK. However, parliamentary research produced for the 2015 Parliament put demand at between 232,000 to 300,000 new housing units per year through to 2020. Demand for new homes is exceeding supply by around 150,000 every year. This demand, fed by the number of new households created each year, is unlikely to fall below the level of supply.
 Immigration will probably remain strong
One of the main negotiations the UK and EU will have to discuss is the free movement of people. Despite the ‘Leave’ campaign suggesting a limit to immigration, we now understand there needs to be movement but objective negotiations will have take place. This will form a significant part of the negotiations to leave the EU.
Outside the EU, the Prime Minister’s current visit to India has the subject of immigration firmly on the agenda for a post Brexit trade deal.
Fundamentals of the UK Property Market
The uncertainty of the exact outcome of Brexit may cause the property investor a little nervousness, but the fundamentals for UK property remain strong.
In terms of capital growth, there are a number of comparable data choices but the Real House price tracker provides more meaningful guide to house prices and has been adjusted for the effects of inflation over the same period. Results confirm the increases in house prices have risen faster than inflation, and includes the last recession where the fall can be seen as a correction when compared to the overall property performance.
There has been widespread comment as to the likely effects on house prices, with falls of between 5% and 10% for areas outside London, though little evidence can be found to support this so far.
The BTL investor has also seen positive movements since 2001 with the size of private renters beginning to grow again.
Annual rent rises too have accelerated in recent years and these are not limited to London. Bristol and Brighton both enjoyed increases, averaging circa 18% in 2015 compared to the previous year. The insurer Homelet reported similar rises in the North (Newcastle upon Tyne and Edinburgh) with around 16% over the previous year. Ultimately the increases are attributable to what’s happening in their specific area and will be influenced by strong fundamentals. Perhaps Hull can expect some positive growth when it is crowned City of Culture?
Rents in London have continued to rise with greater pace than other areas in the UK but have slowed since 2014, therefore a narrowing of the rent inflation gap between London and the rest of the UK.
Even with the recent policy change for buy-to-let investors paying additional stamp duty, more people have turned to BTL investments perhaps as an alternative to low interest rates, bolstered with the knowledge the pace of house building has not kept up with demand therefore sustaining their investment. At the time of the referendum result, there was speculation the base rate would reduce from 0.5% to 0.25% which did take place in August. The Bank of England indicated they would consider reducing further if the economy worsened, which so far has not been the case. It was also confirmed at the time, they also would add money to support confidence and restrict banks freezing liquidity, if not this would probably cause a further credit crunch and restrict mortgage finance. The governor of the Bank of England, Mark Carney, confirmed the reserve of £250bn can be made available if required.
Carney further commented the substantial capital held and large liquidity gives banks the flexibility to continue to lend to businesses and individuals even during challenging times. This suggests provision and safeguards are in place to maintain current lending to suit demand.
Since the referendum, the markets have rallied well and only recently fallen as investors are perhaps concerned that central banks around the globe are easing up on the monetary policies given the uncertainty of the US election result.
In the UK, mortgage approvals by the main banks increased in September after a 19-month low in August. They were lower than the year before but speaking with our local agents, they suggest it’s down to a lack of supply of new build property rather than purchasing confidence.
There are four main areas for focus as we get to grips with the prospect of the UK outside the EU.
1) Calm – we have some indication this is already with us; the markets do seem to have calmed. This is probably due to all the positions the markets took on ‘Remain’ have now well and truly played out. It’s not over yet though, the volatility is set to continue until Article 50 has been triggered and a new directional plan from the government for the UK to leave is known.
2) Change – Nothing ever stays the same, what works for today may not be right for tomorrow. A pertinent example is Kodak, they tried to ignore new technology hoping it would go away by itself on the basis of it being too expensive, too slow, too complicated etc. It wasn’t and their market changed irreversibly in a relatively short period of time, moving from wet film to digital technology.
3) Opportunity – Leaving the EU does provide opportunity. With price correction, there is opportunity to procure better land deals than prior to the referendum, as there may be fewer developers with available funding. Contractors had full order books and build costs had become very high prior to the referendum. We are aware some development contracts have been cancelled as a result of Brexit. Therefore, there might be more opportunity to reduce build costs as price elasticity plays out. The current volatility will ease. The fact the UK has to build more houses to meet demand won’t change.
Bastien Jack Group Ltd has a strong project pipeline and always procures sites which have strong fundamentals and in areas where people want to live. There is a huge amount of due diligence which goes into every site appraisal including courting many local agents and advisors to confirm local demand and Gross Development Values. Speaking with agents in our pipeline areas, they have confirmed confidence is still strong and enthusiastic house viewings are still going ahead. As long as lending is still being offered and liquidity remains within the economy, there remains a great opportunity for us to progress.
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For more information on Bastien Jack Ltd investments please visit https://www.bastienjack.com.
To arrange an interview or comment from Rick Nicholls, MD, please contact Liam Thompson at lthompson@sks-london.co.uk , http://sks-of-london.com, or on +44 (0) 20 3290 6001.

Wednesday, 16 November 2016

INVEST SMART INTO UK PROPERTY DEVELOPMENT



Strange days in the investing world at the moment?
Worried about the effect of current global events on your portfolio? Who isn’t?
Many investors are now turning to safer investments to protect themselves from market risk.
Introducing Bastien Jack Ltd., an established UK property developer who can tick all the boxes for you, within individual property developments and also a new offering across multiple UK developments.
Using state of the art property development techniques, Bastien Jack offer you investments centred around established UK property methodologies and assets, and where almost all risk is mitigated for you.
Investment highlights:
* Uncomplicated private investment into a specific development, OR:
* Into a group of developments
* Exclusive JV funding considered
* Fixed investment term to suit (from 1 year)
* Minimum investment £100,000.00 GBP
* Significant returns
* Tax benefits included
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To register your initial interest for your Investor Pack and Due Diligence, please simply complete the form here.

Thursday, 27 October 2016

Private Banking - Alternative Investments – Mitigating Risk


Private Banking - Alternative Investments – Mitigating Risk
Private banking is an industry currently undergoing something of a renaissance. As the balance of economic and geopolitical power between East and West has shifted over recent years, there has been an explosion in demand for private banking services across the Asia Pacific region. The emerging markets of China, Malaysia and elsewhere pushed total global assets managed by the private banking industry in 2015 to $20.3 trillion, up from $18.5 trillion in 2013 and the growth of China into a global power has led to an explosion of wealth within its sphere of influence. Recent analysis by the World Wealth Report1 for example, reveals that the number of individuals with investible assets worth $1 million plus in the Asia Pacific region increased by 17% in 2013, to 4.3 million people. The total wealth held by this group also increased correspondingly by nearly a fifth, to $14.2 trillion.

This growth in the market for private banking has been further assisted by tighter regulation in the post-crash world. Scrutiny and regulation have forced many mainstream and high-street banks out of investment banking, leaving the field open for more specialist and investment driven banks.

Regardless of these dynamics however, striking the right balance between return and risk remains key in the private banking sector.

Building investments…
In the wake of the 2008 crash, and the age of low interest rates and quantitative easing which it ushered in, property has remained the most attractive investment for those looking for significant returns. The reasons for this are clear. Recent research from Savills2 revealed that the total value of property worldwide (currently around $217 trillion) is 36 times more valuable than all the gold ever mined (worth approximately $6tn), 2.3 times the value of outstanding securitised debt ($94tn), and 3.9 times the total value of equities ($55tn). The same report estimated the growth rate of this global asset class to be 1.77%, so there are returns to be made and growth rates in local markets often far exceed this. 

Recent data from MSCI shows that US commercial property funds in 2015 grew a staggering 15.6% according to the PREA/IPD US Quarterly Property Fund Index3. Even more impressive is the fact that investments in US commercial property have seen a cumulative return of 129% over the past six years.

There are downsides to property investment however. Property requires regular maintenance for example and while, on the whole, tenants can be relied upon to not mistreat a property and pay the rent on time, bad tenants can turn an investment into a full time job. Politics can also weigh large in the minds of property investors and housing and property is for many a significant political issue. This ensures that the market is often the subject to policy interventions, and property investors can need to be aware of the political contexts in which they make their investments. Investors in one development in London, for example, have been singled out in the media as being representative of rising property prices and the political frustrations which follow4.

As a result of this kind of rhetoric, rent caps are being considered or implemented in cities including Dublin, New York and Berlin – despite all the evidence against such market intervention.

At the other end of the scale, larger investments through Real Estate Investment Trusts (REITs), while generating decent returns, are not as high yielding as direct investment can be. The fact that these investments are managed by large corporations and investment houses also means that there is often a potential disconnect between returns, and the allocation of those returns to investors. Indeed, a recent report from a research team in Toronto found that, while REITs had the highest net returns amongst a sample of asset classes, investors in REITs saw the lowest allocations – just 0.6% of total asset value5.

…and making them work

Despite the politics property investments continue to outperform other asset classes and so remain popular. Looking again at the US for example, we see that commercial property as an asset class has outperformed US bonds (up 4.39% over the period 2011 to 2015), stocks (up 13.45%), corporate bonds (up 4.72%) and commodities (down 10.93%)6.

So what’s the best way to maximise returns, while minimising risk?

Rycal Group have developed a niche which is proving to be increasingly popular with investors. The opportunity is centred around the Carlton James Group, an investment portfolio with a focus on the US’s hospitality sector. Over the last five years this portfolio has seen average returns of 17% per annum. With a strategy based upon wide-ranging geographical and market intelligence, Carlton James look also for additional revenue generators – for example taking into account a development’s proximity to highways, malls and economic infrastructure – as well as local economics.

Simon Calton, Co-Founder and CEO of the Carlton James Group, says: “Private banks and their clients define themselves by their willingness to consider alternative investments – finding the opportunities that others miss. Making alternative investments work for clients however requires depth of knowledge and understanding in any given market. A portfolio such as ours is a perfect partner for investors looking for opportunities in the US that others have yet to capitalise on.

“The secret of Carlton James’ success has been the ability to take a 360-degree view of any investment. We recognise that, to a large extent, the residential property market is saturated, and economists from many global cities are talking about local housing bubbles. Property used for hospitality however is a growth market, and will continue to be so in an economy geared ever more towards the service sector.

“Our expertise also extends to considering the local infrastructure around the properties we invest in. How near is closest freeway or shopping centre? What future developments are planned in the local vicinity? These questions and more are key to the long-term success of our portfolio and guide our decision making processes.”


Carlton James is proud to sponsor the Spear’s Private Banker of the Year Award at the Spear’s Wealth Management Awards (WMA) November 1st at The Dorchester, London, UK.


For more information on the Rycal Group and Carlton James investments please visit http://www.rycalgroup.com/newinvestors. To arrange an interview or comment from Simon Calton, CEO, please contact Liam Thompson at lthompson@sks-london.co.uk , http://sks-of-london.com, or on +44 (0) 7890 315 537.




Tuesday, 4 October 2016

PROPERTY INVESTING – MITIGATING RISK


Since the crash of 2008, property has been the asset of choice for investors looking to make returns. Regardless of stock market turbulence and currency crises, the value of property, and the returns available for investors, have been on an upward trajectory. For everybody from international real estate investors, to retirees investing in buy-to-let as a pension alternative, property has been the goose that lays the golden egg.
A recent report issued by MSCI highlights the potential rewards investors can reap from property investment. Their data shows that US commercial property funds in 2015 grew a staggering 15.6% according to the PREA/IPD US Quarterly Property Fund Index1. Even more remarkably, investments in US commercial property have seen a cumulative return of 129% over the past six years.
Despite the good news however, there are downsides that need to be considered before investing in property. Property for example requires regular maintenance – and while on the whole tenants can be relied upon to look after your property, and pay the rent on time, bad tenants can be a real headache, turning your investment into a full time job. Recent data from the UK for example, shows that a total of nearly 43,000 tenants had to be evicted from privately rented properties in 2015. And with geopolitical uncertainty such as Brexit and elections in the US, France and Germany on the horizon putting downward pressure on economic performance, these figures have the potential to grow.
Property investors also need to consider legislative interventions. Housing across the western world is a key political issue, the reason being, there isn’t enough of it. As such landlords can often find themselves in the political cross-hairs. Landlords in the UK for example, have seen stamp duty increased on buy-to-let purchases, as well as new limitations on the amount of tax relief which can be claimed against rental income and the upkeep of rented property. Likewise, rent caps are becoming increasingly popular in cities across the world including Dublin, New York and Berlin. The new mayor of London has also recently floated the idea of limiting the rent which can be charged on privately rented property.
At the other end of the scale are larger investments, such as Real Estate Investment Trusts (REITs), which, while generating decent returns, are not as high yielding as direct investment in the private rented sector can be. The fact that these investments are managed by large corporations and investment houses also means that there is often a potential disconnect between returns and the allocation of those returns to investors. Indeed, a recent report from a research team in Toronto found that, while REITs had the highest net returns amongst a sample of asset classes, investors in REITs saw the lowest allocations – just 0.6% of total asset value2.
Is property worth still it?
There is no doubt that property investments continue to outperform other investments. When we look at US commercial property for example, we see it has outperformed US bonds (up 4.39% over the period 2011 to 2015), stocks (up 13.45%), corporate bonds (up 4.72%) and commodities (down 10.93%)3. Market fundamentals would indicate that this situation is unlikely to change any time soon.
Given the concerns outlined above however, is property still worth it? Set against bad tenants and political scapegoating, the returns available on property may begin to look rather less impressive.
The question is, is there a way to ‘have your cake and eat it’ and enjoy the returns available on property investments but with less of the potential risks?
A novel approach
One opportunity to do so are the investments from the Rycal Group, offering entry to the Carlton James fund which has an investment portfolio focused on the hospitality sector in the US. Carlton James has been investing in this market for a while now, delivering returns averaging 17% for the last five years. With a strategy based upon wide-ranging geographical and market intelligence, Carlton James look also for additional Revenue Generators – for example taking into account a development’s proximity to highways, malls and economic infrastructure – as well as local economics.
Simon Calton, CEO of the Carlton James Group and Rycal Group, says: “Property remains an investment of choice for investors around the world, delivering yields which are difficult to achieve elsewhere in the low interest rate era we find ourselves in. Traditional property investments however can be quite demanding and are subject to risks and influences which are completely beyond the control of investors.
“Property investments are typically slower to move than other investments, such as stocks and shares, so exiting a property investment can also be difficult, leaving investors exposed. There are alternatives however, to small scale personal investment – the landlord route, and larger scale, institutionally led investment.
“At Rycal we work to capture the yields which make property investment so appealing, while also mitigating the downside risks. We achieve this by employing wide ranging and detailed intelligence, about everything from the performance of comparable assets, to the proximity of our developments to infrastructure such as roads and railways. We also ensure that detailed exit strategies are in place and ready to be deployed so that, should the worst happen, our clients are protected.”
“With a diverse portfolio of properties and deep investment intelligence, Carlton James offer a genuinely novel approach to property investment, and one we expect to grow in popularity over coming years.”
For more information on the Rycal Group and Carlton James investments please visit http://www.rycalgroup.com/newinvestors. To arrange an interview or comment from Simon Calton, please contact Liam Thompson at lthompson@sks-london.co.uk , on +44 (0) 7890 315 537 or via http://sks-of-london.com.
  1. https://www.msci.com/documents/10199/e667cc74-b4e2-4f72-8d8a-8b88e283b211
  2. http://www.pionline.com/article/20160627/PRINT/160629891/reit-returns-strong-allocations-remain-low-study-finds
  3. https://www.bullionvault.com/guide/gold/Annual-asset-performance-comparison

THE LUXURY PROPERTY SHOW LONDON 14-15 OCT.


The Luxury Property Show London 14-15 Oct.


For VIP contact SKS on E: introductions@sksmedia.co.uk

#sks8

Friday, 19 August 2016

HIGH NET WORTH MARKETING – WHAT AND WHY?


What’s an HNWI? Anyone know for sure?
This is the abbreviation used for ‘High Net Worth Individual’. Why is this important to your marketing? Most CMOs will tell you that the best way to blow away a target CPA number is to market to high net worth individuals, i.e. promote your wares in front of an audience who can instantly afford whatever it is your company does, not waiting for next pay check, not waiting for a business partner, just ‘I like it, so I’ll have it’. Not only this, but HNWIs have a habit of purchasing goods and services in multiples. This is usually music to the ears of most Sales Directors, ergo the Board.
HNWI definitions vary according to where in the world you happen to be. For example, Investopedia has it as:
“The most commonly quoted figure for membership in the high net worth “club” is $1 million in liquid financial assets.” 1
… whereas other countries have lower definitions, and some specialist agencies significantly higher.
In particular, one regulatory body defines high net worth for investment purposes as having an annual salary over £100,000.00 per annum, whereas an international high net worth agency may define this as high as £5M liquid assets, sterling.
To classic marketers the realm of high net worth marketing may seem like a mysterious target to reach. Many companies have tried and become disillusioned with trying to reach HNWs for a variety of reasons, not least of which is the size of the budgets necessary to achieve it as a standalone firm. Most approach it in the spirit of a customised B2C campaign, or even a B2B campaign if the targets also own significant businesses. However, these approaches have historically reaped minimal success if executed only once or twice.
Depending on your company’s offerings, most HNWs are highly likely to have an advisor, or even several advisors, with whom you must ‘pass muster’ before you will be allowed access directly to them. This can be frustrating for most sales forces, and, unsurprisingly, most sales forces give up due to the fact that they have more pressing targets to meet, thus contributing further to the HNW project challenges.
However, for those lucky to have good timing, or a well-known product and suitably attractive service, direct access can be gained and very quickly they discover what all HNWs have in common. They are all ‘time poor’. They will want to be convinced of your offering, although rarely have time to address it, and are much more likely to stack up a few good things with one of their trusted advisors and crash through them in an afternoon at the Dorchester. So we see also that knowing and cultivating their advisors is key.
You will also quickly discover the immense complexity of each HNWs set up in terms of tax, holding structures, estate planning, philanthropy and more. So be prepared. It might also be wise to have senior sales personnel assigned to these tasks, preferably from a background with which your target HNWs will be familiar. Likewise, it may be beneficial to have in your arsenal several possible offerings as during the cultivation phase of your fledgling relationships you will be uncovering actual needs from your HNW which you may be able to fulfil for them quickly and efficiently. Needless to say, personalised attention, and lots of it, is an absolute must, which leads us to the next challenge.
Time is money, and these approaches take up an inordinate amount of person-hours. If you are unable to commit these kinds of resources to your HNW project, you might consider also a high net worth marketing agency, of which there are surprisingly few, although one of two of them do actually deliver excellent results.
In addition, you may find that most HNWs are averse to risk, especially with the current global economic considerations. Once you have your first HNW client, it’s advisable to spend as much time on and with them as you are able. HNWs usually travel in the same circles, holiday in similar places, know a lot of the same people, and from this first account you may be able to segue others by way of referral. As we all know, word of mouth is the best marketing tool on the globe.
Furthermore, in the early stages of your new relationship with your first HNW you might want to consider taking every conceivable opportunity to demonstrate exclusivity, loyalty, and a willingness to always ‘go the extra mile’. Remember too that discretion is a big word in this space, so not the best of ideas to naturally assume your new HNW client might want to mingle with others, including other HNWs, for many reasons.
Ian Gordon, Head of Banks Research at Investec commented recently:
“In theory at least, your high net worth customer ought to be a source of new business account possibilities,”
“It is about making the whole worth more than the collective individual parts.”
That’s all very well you may think. But this still leaves most companies with the problem of how to start their active efforts in the high net worth marketing stakes. And how to get past the immense effort and number of person-hours required to get things moving properly.
John Winters, a Senior Director at SKS Media Singapore, a global high net worth marketing agency comments:
“We are familiar with the challenges facing most companies looking to enter or expand within the high net worth marketing space globally. It can indeed be daunting at first due to the immense efforts required, which is why many clients come to us to help get them started…..”
As an example, SKS Media have one of the largest high net worth databases on the globe which can be included in client campaigns for HNW attraction in a variety of sectors including luxury goods and services, asset and wealth management, private banking, real estate, and investor attraction for various top drawer offerings. Adding in to the digital efforts, SKS also have a sizeable ‘agent base’ globally who carry client offerings directly to their individual ‘black books’, thus generating interest through this direct one-on-one engagement, and various other channels designed to attract interest to a specific offerings. Digitally, these also include ‘Intellipost’, invented and invested by SKS in 2010 whereby client messaging is left if highly targeted areas of the web known to be fertile for a cause, often exploring new niches for which clients are unlikely to have resource e.g. polo, super yachts, golf, luxury cars, and certain types of financial instruments only ever used by HNWs and UHNWs. They also sport a sizeable HNW social network globally through which client messages can reach their HNW targets, and a HNW Partner Network to match. Interestingly, SKS also offer the PCN (‘Private Capital Network’), through which clients can receive direct referrals via ‘word of mouth’. Also offered are the TV, Radio, Outdoor, Events, PR and Partner Development areas as a full service advertising agency, albeit only in the HNW space.
But given the subject matter, what about the ‘personalised approach’?
Winters continues:
“Once significant interest is collected for a particular client, the strength at SKS is in the pre-qualification and individual ‘old school’ follow up we afford each potential new prospect for a client. In the HNW space this is both expected and prerequisite to any campaign. In this regard we are extremely ‘granular’, as this is proven to be a superior option for direct ROI to the client. Many clients prefer to use us as their ‘marketing/direct sales arm’ for the HNW space as we have been doing this so long now……”
So it may be of some reassurance that whether you are starting out in the HNW space, or looking for increased exposure and direct sales from this potentially lucrative area for your business, there is help at hand so that you don’t necessarily have to incur the enormous cost of doing it alone.
Either way, high net worth marketing is still extremely attractive for many reasons. In fact, it you are going to promote anything it is good common sense to put it in front of an audience who can instantly afford whatever it is, right?
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For more information on SKS Media or any of the commentary above please visit  http://sks-of-london.com
To arrange an interview or comment, please contact Alison Daff at skpr@sksoflondon.net or on +44 (0) 203 290 6001.

US COMMERCIAL PROPERTY VS OTHER ASSET CLASSES. INVESTABLE? Commentary with Simon Calton, CEO, Carlton James and Rycal Group


With the world still coming to terms with a major reformulation of the political order in Europe, and preparing for what promise to be unpredictable electoral contests in Germany and the US – investors currently face an uncertain world. Increasingly frequent terror attacks in Europe and elsewhere are fueling a rise in right-wing populism and protectionism that threatens to destabilise the global economic order.
The confirmation of real estate mogul Donald Trump as candidate for the Republican Party in the US is a case in point, with Trump threatening to pull the US out of the World Trade Organisation in order to protect jobs in the US from the forces of globalisation.
In Europe also, protectionist instincts will need to challenged as new trading arrangements are determined with the UK and negotiations continue around the troubled Transatlantic Trade and Investment Partnership with the US.
The picture is not clear then, and there are many moving parts which look set to disrupt markets over the medium term. So where should investors looking to hedge against current uncertainty turn?
Building confidence
While there is much uncertainty, and while stock markets globally took a hit following Brexit and are watching developments nervously, recent data from leading investment house MSCI could give pause for thought for those who think the days of double-digit returns are over.
A report issued by MSCI in February revealed that US commercial property funds in 2015 grew a staggering 15.6% according to the PREA/IPD US Quarterly Property Fund Index1. Even more remarkably, investments in US commercial property have seen a cumulative return of 129% over the past six years.
In fact, US commercial property has outperformed other asset classes, including US bonds (up 4.39% over the period 2011 to 2015), stocks (up 13.45%), corporate bonds (up 4.72%) and commodities (down 10.93%)2.
Simon Fairchild, an Executive Director at MSCI puts it like this;
“U.S. real estate open-end funds have produced double-digit returns for six straight years. This period encompasses the remarkable recovery from the doldrums of 2008/2009.”
But Brexit happened, a Trump Presidency looks far less unlikely than it did at the beginning of the year and growth continues to slow in China – surely these themes will change the dynamic?
A key skill for any investor is being able to recognise opportunity – even in times of uncertainty. Market watchers should note of recent announcements from Juwai – China’s biggest international property portal – which is reporting interest in UK property having climbed 40% since the Brexit vote.
So, what is driving growth and interest, even against a backdrop of such uncertainty?
Market fundamentals
While uncertainty abounds, savvy investors realise that market fundamentals don’t change on the back of a single political development. And as in the UK, the fundamental forces at work in the US’ commercial property market create a sound environment for investors.
Global pressures and uncertainty are likely to keep interest rates in the US low over the medium term, ensuring a steady flow of foreign money into the US economy. This in turn will continue to drive demand, and ensure good returns for those willing to invest in supplying this dynamic.
One opportunity to do so is the investment from the Rycal Group, offering entry to the Carlton James Group who have an investment portfolio focused on the hospitality sector in the US. Carlton James been investing in this market for a while now, delivering returns averaging 17% for the last five years. With a strategy based upon wide-ranging geographical intelligence, Carlton James look also for additional Revenue Generators – for example taking into account a development’s proximity to highways, malls and economic infrastructure – as well as local economics.
Simon Calton, CEO of the Carlton James Group and Rycal Group, says: “Geopolitical upheaval and changes of government have an immediate impact on share prices and investor confidence and can lead to rapid and unnerving market fluctuations. We saw this in the immediate aftermath of Brexit and we should expect more as November’s Presidential elections in the US draw nearer.
“What we have also seen in the subsequent weeks however, is these fluctuations correcting themselves as they adapt to the new reality. The lesson is that investors should keep an eye on the longer-term, and the market fundamentals.
“The US economy remains buoyant and, with the world unsure as to the status of relations between the UK and the EU, is likely to benefit from investors looking for a greater degree of certainty than is currently available in Europe.
“Rycal have a strong track record of making our investments work by developing detailed exit strategies, a diverse portfolio of properties and deep investment intelligence, and we expect Carlton James  to be a real source of growth over coming years.”
For more information on the Rycal Group and Carlton James investments please visithttp://www.rycalgroup.com/newinvestors. To arrange an interview or comment from Simon Calton, please contact Liam Thompson at lthompson@sks-london.co.uk , via http://sks-of-london.com or on +44 (0) 203 290 6001.
  1. https://www.msci.com/documents/10199/e667cc74-b4e2-4f72-8d8a-8b88e283b211
  2. https://www.bullionvault.com/guide/gold/Annual-asset-performance-comparison