On The Threshold: The bricks of Brexit Britain can still build value for investors



By Alessandro Pasetti, 27 November.

It is not just me anymore.
“Europeans may not think much of the UK’s politics, but they still like the look of its real estate,” The Irish Times wrote earlier this month.
While the Irish are known for their sense of humour, this was serious stuff. It continued: “Brexit Britain will be the top destination for major European investors to snap up commercial property next year, according to a survey of executives managing more than £500 billion of real estate conducted by Knight Frank.” 

Relief

Firstly, it was a pleasure to find that, despite all the doom and gloom in the press, I am not alone in continuing to believe in UK real estate market opportunities, .

However, it would make for a big change if all the Brexit uncertainty disappears, mainly for the bears. Take this: “Britain has become cheaper than markets like France and Germany, where returns have shrunk in recent years as buyers have piled in,” The Irish Times added.

It makes a lot of sense, from a trade prospective, to be prepared to bite if you are selective. Outside the commercial real estate arena, whose prospects bode well for residential and other investments, there are also good signs of future heath in a market that needs more confidence as well as properties to satisfy demand, and where good deals could always entice foreigners ready to deploy capital. Warren Buffett is doing just that in the UK, in case you missed it.  

On the investment guru and his investment decisions, earlier this month Fortune wrote: “The tie-up with a luxury-property brokerage focused on London neighbourhoods including Mayfair and Hyde Park comes as Brexit hammers the UK housing market. Undeterred, the UK firm—now known as Berkshire Hathaway HomeServices Kay & Co.—plans to expand through acquisitions and joint ventures, and will add as many as 10 standalone offices in the next decade.”

Deals

Yes, the spotlight is on Brexit Britain, but the Inveztments team does not waste time on fluff: two brand new project entries, selected exclusively for you, have now formally launched. As the search of the best developers continues, so does a balanced risk/reward profile for the investment the team promotes.

Dealing with clients is not always easy, but the team does its best to satisfy all those needs that are central to the customer experience when they choose Inveztments.

Bearing this in mind, look at where the real estate investments if offers are located and the kind of upside these locations offer on a global scale.

IBM this year screened the world for cities that are true gems, based on several aspects. In its own words, research was performed based on “What factors are driving foreign direct investment and impacting economic growth around the world”; “Where is foreign direct investment originating and which countries and regions are benefiting”; “What must government and economic developers do to navigate the new era of Globalisation 4.0.”

The report, headed “2018 Global Location Trends” clearly identifies three cities where the managing directors of Inveztments have talked of and done real estate business for decades.

The one topping the list … drum roll … is London, which is slowing big time in terms of investment projects (the amount of capital and jobs it has attracted on various levels from foreigners, quantifiable as “FDI”), but is still the leader worldwide in terms of investing attractiveness. Then, look at Liverpool and Manchester, on the global scale. Even Birmingham made the list, although I doubt its Indian cuisine, arguably some of the best on the planet, had anything to do with the achievement.

(Source: IBM)

In terms of FDI, the UK has inevitably lost appeal, but it still comes fifth in the global rankings, ahead of Germany, Russia, France, Canada and a few others.

(Source: IBM)

The Inveztments portfolio of projects has been trimmed lately in a pursuit of true excellence.

The two latest additions are shown below

Full details can be found here and here.

In a nutshell:

A) Aura (Liverpool, student)

From £64,950
Net Yield – 8% per year for five years
Modern en-suite & self-contained studio apartments arranged in clusters
Desirable knowledge quarter location

B) Parliament Square (Liverpool, residential)

From £94,950
Net Yield – 7% per year for one year
One, two & three bedroom apartments plus 16th floor penthouse
Located in the Baltic Triangle

Why wait?

(This post was written by Alessandro Pasetti. Ale is the founder of Hedging Beta Ltd. He writes about investment strategy and assets valuation for European clients as well as Seeking Alpha, The Loadstar, Transport Intelligence and others. Based in London, he previously worked for about five years at Dow Jones/The Wall Street Journal, producing analysis for the IB community. Prior to that, he contributed to the launch of London-based Loan Radar, where he worked for three years. He had stints in equity research at Bear Stearns in London, HVB in Munich, and Unicredit in Milan.

It was edited by Gavin van Marle, managing editor of London-based The Loadstar. Gavin is also the author of the book Around the World in Freighty Ways: Adventures in Globalisation. He has won numerous awards, including the Seahorse Journalist of the Year 2011 and 2009, and Supply Chain Journalist of the Year 2010 and 2014.)