| Dear Investor,
It’s been a while since the last newsletter as we’ve been busy with seminars in Dublin and London and meetings with clients around the country. The pace at the moment is very quick.
In London we met with a client from overseas who wishes to invest £50 million in UK distressed assets. He is one of a number of overseas clients who has identified the weakness of sterling and the present prices through banks, administrators and LPA receivers as an opportunity not to be missed.
It is always interesting to sit down with someone from another country and hear their reasons for investing in the UK right now – it is interesting how many people living here do not see the huge opportunities in the present market.
We have put forward a number of offers recently and have had some success. Investing “off market” as such is not conveyer belt investing and takes patience, time and lots of due diligence. We have the services of a solicitor who investigates and legally approves all of our purchases.
Shortly we will be selling properties in London, on behalf of an administrator, with substantial discounts and yields between 6% and 9%. Some properties have secured leases for a number of years with a third party which guarantees cash flow. These properties are excellent value for money and will be sold very quickly.
If you are not a member of Distressed Assets and wish to receive details of the repossessed properties we have access to, then phone Alun on 0151 243 5431 from the UK or +44 151 244 5656.
Personally, I have been busy working with a professional property management company to take over responsibility for our newly acquired office block. We are literally starting from first principles and I am now fully briefed on things like lift insurance and the nuances of commercial property management. The best bit of advice I received from a friend was to outsource completely the management of this property, including lease negotiations, rent reviews etc, and I have now done this.
Economically, I think the worst of the “credit crunch” is now behind us and we will see some form of weak recovery 4th quarter 2009. It is difficult and somewhat foolish to try and look into a crystal ball, but I think the base rate factor combined with an improvement in sentiment will eventually kick in.
In terms of property, we have seen prices rising in the “off market” sector which should be a precursor to stability in the main market. Only time will tell, but if you are putting off an investment decision, I wouldn’t wait too long!
Regards
P.S. Joyeux Quatorze Juillet |
