Fri, 30 January 2015
Lord Deighton, commercial secretary to the treasury, has said investment in infrastructure has been hampered by short term thinking.
At a Whitehall lecture organised by the Cambridge University Land Society Deighton said that the UK is at the forefront of creative strategies for funding infrastructure but that the country needs to maintain cross party support to deliver vital projects.
Alex Horne spoke to Lord Deighton following his lecture about L&G’s recently launched investment fund for infrastructure.
Fri, 30 January 2015
London’s ability to meet projected demand for office space is beginning to worry the Greater London Authority.
Deputy mayor, Sir Edward Lister, said rising office rents in central London, and continuing office-to-resi conversions were beginning to “ring warning bells”.
Lister was speaking last night at the Lambert Smith Hampton Ski Challenge Business Forum in Courmayeur in the Italian Alps.
The forum included speeches by Lister and Urban Splash chairman Tom Bloxham.
“We believe in the pipeline at the moment that we have enough going through, but it is now reaching a stage where we’re starting to worry,” Lister told a crowd of 130.
“You can see that, because you can see the rent levels rising.
“The fact is, with the City running at about 7% vacancy rate, and the West End at 3%, you can tell we have a problem.”
Wed, 28 January 2015
In the first of a monthly new audio special, EG Radio brings you Real Talk with James Max. This month's show features Ares Management senior partner Bill Benjamin. Benjamin, who joined Ares through its takeover of Area Property Partners 18 months ago, shares his advice on how to find the perfect deal, how the British and the Americans have quite different definitions and how government holds the key to tackling London's housing crisis.
Tue, 27 January 2015
The Smithsonian has entered into official talks with the London Legacy Development Corporation to open a 40,000 sq ft centre at Queen Elizabeth Olympic Park.
If talks are successful, the project will be the Smithsonian’s first permanent facility outside the US in the institution’s 168-year history.
Targeting a 2021 opening, the Smithsonian, the world’s largest museum and research complex, would join the V&A, UCL, University of the Arts London, and Sadler’s Wells at the centre of a new 818,000 sq ft university and cultural district in Stratford.
The large-scale development of the area around the Olympic sports arenas, nicknamed “Olympicopolis”, is expected to deliver 3,000 jobs, 1.5m additional visitors and £2.8bn of economic value to Stratford and the surrounding area.
Mayor of London Boris Johnson said: “The Smithsonian is a truly extraordinary and unique organisation and I am absolutely thrilled that we are progressing talks regarding its involvement in the world-class arts and education quarter we are creating in Queen Elizabeth Olympic Park.”
David Goldstone, chief executive of the London Legacy Development Corporation, said: “To have the world’s largest museum and research complex taking such interest in the project shows the massive potential Olympicopolis has to offer. We look forward to very positive and productive talks.”
Mon, 26 January 2015
Podcast interviews from Estates Gazette's Manchester Focus Reception 2015. Estates Gazettes Lisa Pilkington asks what Manchester stands to gain from the Northern Powerhouse agenda.
Interviewees are: Matt Crompton, Muse Developments, Richard Wharton, JLL and Steve Goldstraw, Crosslane
Mon, 26 January 2015
Impact of election will not be as big as feared.
The property industry will see a slowdown in the run up to the election, but this impact should only last a few weeks.
This is what property delegates heard at the first Movers and Shakers breakfast of the year at The Dorchester hotel on Friday January 23.
“I think we will see a slowdown in early April as there is more uncertainty for the consumer,” said Mark Clare, chief executive of Barratt developments. “Then, when we come out with the result the party will realise that there are some substantial targets to be hit and the market will pick up again.”
Overall, the consensus for the year ahead is positive.
“It’s going to be a positive year, and there is no doubt that 2014 was better than anticipated ,” said David Atkins, chief executive of Hammerson. “I think that the momentum we have seen in the economy will continue over the next twelve months. I think we will look back on this era and think of it as a golden era for real estate.”
Tue, 20 January 2015
Whitechapel, Ealing Broadway and West Drayton are set to deliver the biggest Crossrail gains for residential developers, according to research by JLL.
The agent labelled Whitechapel its top build to sell location along the route, with a maximum score of 10, forecasting that house prices will grow 19% by 2020.
This is against average price increases of 8% along the whole of the route.
JLL looked at price growth forecasts, desirability to develop, development potential and development risk scores to come up with an overall build to sell score for each station.
It said, however, that markets such as Woolwich, Iver, Langley and Slough, which had attracted less attention from developers to date, could see rises in residential values and were worth investigating further. Longer term between 2021-2030 JLL pointed to Ilford, Forest Gate, Abbey Wood, and Southall as its top locations which offered more opportunistic potential but needed significant investment.
“This is all about areas capable of gentrification and regeneration which will drive an increase in value,” said Neil Chegwidden, JLL’s director of residential research and the report’s author.
“Locations such as Woolwich might not have been picked up by developers because they haven’t got a socio economic demographic. Ilford has the potential to be a Dalston or Shoreditch of the future, but it needs regeneration for its image to change,” he added.
Iver and Langley offered medium-term potential but a high concentration of greenfield land has so far put off developers. “Councils will come under pressure over greenfield land especially close to Crossrail stations, so it might be a no-go at the moment but don’t discount,” said Chegwidden.
Rents will rise by a slightly more modest 7% along the route, it forecast with the best performing market Whitechapel seeing rises of 15%.
Direct download: 150120_JLL_Crossrail_Adam_Challis_Neil_Chegwidden_AR.mp3
Category:general -- posted at: 1:55pm UTC
Fri, 16 January 2015
Commercial property markets may be undersupplied by 2017 unless developers start building now, Lambert Smith Hampton has warned.
Oliver du Sautoy, head of research at LSH, has highlighted an “acute” lack of quality office and industrial property in many regions, with a remaining supply “often spoken of in terms of just one year or 18 months”.
Speaking at a Hamptons International’s and LSH’s breakfast briefing this week, he said: “Developers have remained understandably cautious over speculative development. But bear in mind that a scheme kicking off now is unlikely to arrive much before 2017, by which time much of the market will be acutely undersupplied. Maybe it is a case of fortune favouring the brave.”
Ezra Nahome, chief executive at LSH, told attendees that rental returns could be 12% or more this year.
He added: “If I look around the country at the latency that exists of demand from occupiers to take good buildings, it is just not flowing through quite yet because the supply is not there.”
Du Sautoy suggested that the next 12 months could see the rise of the “alternative sectors”, with opportunities for investment in PRS homes, private rented healthcare and student accommodation.
Fri, 16 January 2015
Birmingham Question Time: Local authority cuts, HS2's impact on office rents, and marketing the city
Local authority cuts are the biggest problem facing the UK's second largest city in the face of an oncoming "tidal wave of development".
Speaking at Estates Gazette's Question Time event in Birmingham's Repertory Theatre, panellist Glenn Howells, of Glenn Howell's Architects, made the statement in response to a question from the floor.
Leader of Birmingham City Council, Sir Albert Bore, said an agreement had been reached with Solihull Borough Council and other local authorities for their planning teams to work together to create a critical mass of resources.
Listen to the full debate in this podcast.
The panel includes:
Fri, 16 January 2015
A major regeneration of the Chrisp Street area in Poplar, E14, will deliver a £300m new destination following an agreement by United House Developments and Poplar HARCA. Rick de Blaby, chief executive of United House Developments, talks to Estates Gazette about the plans and how he is experiencing life after stepping down from his role at the helm of MEPC last year.