LONDON, July 14 (Reuters) - Britain's economic slowdown heralds a wave of forced commercial property sales that could yet tip a downturn in real estate markets into a 1990s-style property crash.
Some new buildings could be left empty, while others could be taken over by creditors, causing the all-too familiar drag effect that haunted the industry for more than a decade last time around.
It took almost 13 years for UK commercial property values to regain their 1989 highs, according to Investment Property Databank.
Far fewer new offices are going up in London than was the case almost 20 years ago, and creditor banks have learned that foreclosure can make a bad property situation worse, but property derivative traders sense trouble ahead as occupier demand begins to wilt.
Much like UK housing index derivatives, commercial property index derivatives have priced in expectations of a total drop in values of about 35 percent from last summer peaks to 2010/11.
Insolvency experts are also gearing up for an expected surge in commercial property-related business, even though any debt-related distress has so far been limited to overstretched buy-to-let speculators and regional residential developers.
Tuesday, July 15, 2008
Thursday, July 10, 2008
Huntons builds real estate with LG hire
Marshall, who will head Hunton’s City property offering, joined this week from LG, where she has been a partner since 2002.
Prior to joining LG, Marshall worked at Scots leader McGrigor Donald as well as a stint in-house at Pearl Assurance.
Her clients include Scottish Mutual Assurance, for which she advised on the sale of 81-100 Kings Road, Chelsea, to Allied Irish Bank for £55m. She also advised Scottish Mutual Assurance on the sale of 11 The Strand, which comprised a freehold mixed office and retail building totalling approximately 47,167 sq ft. Her other clients include Zurich Assurance, Halifax Bank of Scotland and Capmark.
Prior to joining LG, Marshall worked at Scots leader McGrigor Donald as well as a stint in-house at Pearl Assurance.
Her clients include Scottish Mutual Assurance, for which she advised on the sale of 81-100 Kings Road, Chelsea, to Allied Irish Bank for £55m. She also advised Scottish Mutual Assurance on the sale of 11 The Strand, which comprised a freehold mixed office and retail building totalling approximately 47,167 sq ft. Her other clients include Zurich Assurance, Halifax Bank of Scotland and Capmark.
Thursday, July 3, 2008
London property prices tumble
Property prices in London have continued to fall as the slump in value intensifies, according to a leading property consultancy.
The price drop accelerated in June and properties in the capital are now worth 1.7 per cent less than they were in May, said Knight Frank.
Amounting to a loss of 3.1 per cent in value over the last three months – the largest quarterly fall since 2002 - the trend is expected to continue.
The price drop accelerated in June and properties in the capital are now worth 1.7 per cent less than they were in May, said Knight Frank.
Amounting to a loss of 3.1 per cent in value over the last three months – the largest quarterly fall since 2002 - the trend is expected to continue.
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