REVIVAL
OF REAL ESTATE WILL CONTINUE IN 2011: BOOMING IN PARIS FOLLOWED BY A PART OF THE
EUROPEAN MARKETS  | | Paris
place de la concorde. |
In Paris 20% INCREASE FOR THE YEAR 2010. price has been announced at € 7 500 per
Sqm. for residential in Paris downtown up to € 20 000 for high standing properties,
like in Avenue Montaigne or in other best locations as well as 7e Paris district,
or the famous Ile St Louis. According to the Notary Chamber, 2011 could continue
the growing of real estate. In France others cities like Lyon, Nantes, Bordeaux,
Cannes have seen the cost go up of 15%. COMMERCIAL
REAL ESTATE Similar
effect on the commercial real estate for buildings in prime location with latest
standards in term of technologies, energy saving facilities and services. The
trend for revival in Europe is also seen in others cities like , Milano, Berlin,
and more recently London where the market is in revival. Berlin has attracted
several major companies for establish their European head quarter in the German
capital with strategy to gain Eastern European markets, like Sony Music-BMG, Daimler-Benz,
Universal, Siemens, or IBM.
ABOUT LONDON While
sales prices fell 30% during the last two years of crisis experienced by London
estate, real estate rental it rather well, with an average increase in rents of
about 20% over the same period. With the rebalancing of the pound sterling to
the euro, the economic crisis makes the London property market particularly attractive
to Foreign investors, which had not happened long ago. This record low for interest
rates is not restricted to the UK; they seem to have hit rock-bottom around the
world. The current Bank of England interest rates are being held at 0.5% and despite
growth forecasts to 1.7%, the BoE has been urged to hold the interest rate at
the current low during 2011, to ensure a steady and sustainable recovery. | . | A
SPECIFIC MARKET OUTSIDE THE EURO ZONE: SWITZERLAND The
real estate market increase dramatically in Geneva and Zurich where the economic
world crisis makes the market particularly attractive. The country is a very heterogeneous
market especially in Geneva, due to a largest demand for foreign individuals and
companies arriving in the country boosted by the European chaotic situation and
a poor offer of real estate. The cost for each Sqm is identified from CHF 9000
to CHF 30 000. About from Euro 6000 to Euro 25 000 and more for very luxurious
units. In Zurich, head of the majors banks and Swiss companies, the real estate
situation is in good position with an larger offer as Geneva and Romandie region.
Price are similar as the world prime locations with a relative secured market
for investors. MONACO
A UNIQUE MARKET The
specificity of Monaco is the limited space for urban development and a unique
location including a sumptuous see view, a tax event for residents and a secured
life style. In counterpart the price of real estate is at the highest of the privileges:
so, a sumptuous 174sqm in a prime location is proposed at € 91000 per Sqm. that
makes Monaco one of the most expensive location in Europe. SITUATION
SPECULATIVE OR LONG TERM STRATEGY? The
crisis is not yet closed, involves transforming the loss of confidence in the
strategy of aggressive management. So in this view real estate has always been
the best choice for investors alongside art and market values outstanding. Today,
many projects in new locations are probably destined to succeed tomorrow in a
medium and long term strategy.
WHAT ABOUT THE EURO? Fall?
the rebound? nobody is really able to give clear information. Although the state
of disaster is not in our view, they still have to wonder what would be the profitability
of real estate bought on the eve of a drastic fall in European money.
To conclude in a not stabilised situation in Europe, buy properties in London,
Paris, Singapoor Geneva or Zurich is a incontournable decision for investor: | | |
|
EGYPTIAN
ORASCOM DEVELOPMENT achieves
CHF 62 million of reservations in the Andermatt project in Switzerland  | | Cube
villa for Andermatt resort: Philip Loskant architect was elected to design, among
others, two types of private residential mansions. |
By
the end of Q3 2010, total value of reserved units in the Andermatt project amounted
to CHF 62 million for a total of 24 reserved units, exceeding 60% from the twelve
month targeted value of sales of CHF 100 million. These sales represent more than
half of the first two apartment buildings "Hirsch" and "Steinadler" and one villa.
As a result of that, Andermatt Swiss Alps, the Group’s Swiss subsidiary decided
to place two more apartment buildings on the market. The
program must be completed in 2012 | JUST
CREATED,
KALLISTEM IS A FRENCH RESEARCH UNIT DEDICATED TO THE SEARCH TOXICITIES ON THE
MALE FERTILITY Just
created under the impulse of Professor Phlippe Durand,
of the Institute for Functional Genomics of Lyon France, Dr Hervé Lucas,
physician and biologist specialised in embryology and reproductive medicine, and
Dr Christophe Grenet, Kallistem is a research unit dedicated to the search toxicities
on the male fertility. The
center located in Lyon, is supported by the French governmental organisations
INRA, CNRS, and The Ecole Normale supérieure of Lyon. For
several months Prof Durand, several named in the press for its works worked closely
with his co initiator Dr Hervé Lucas who was one of the most talented young
physician and biologist specialised in embryology and reproductive medicine who
was associate director of its french laboratory specialised in assisted reproductive
technologies ART. 
SWATCH
GROUP: 2010 SALES EXEED CHF 6 BILLIONS FOR THE FIRST TIME Record
year for the Swatch Group with Group sales of CHF 6 440 million, an increase at
constant exchange rates of +21.8% over 2009 and +12.7% over the previous record
year 2008, despite capacity bottlenecks and adverse exchange rates. Expected
earnings 2010 and Outlook 2011 The
Group expects an improved operating margin and a higher net profit for the financial
year 2010 compared with the previous year. This improvement will be visible in
all areas of the Group. The record figures expected in absolute terms will be
attenuated by the extremely strong Swiss Franc. The outlook for 2011 remains positive,
despite a negative foreign currency development, particularly in the US Dollar
and the Euro, against the Swiss Franc. The Swatch Group will further generate
dynamic and organic sales growth in 2011 and continue investment in its distribution
and the expansion of its production capacities. The latter applies to both standard
products as well as new products which were launched in the markets very successfully
at the year-end of 2010, such as the New Gent from Swatch, the Ladymatic from
Omega and the world exclusive «Type XXII 10 Hz» chronograph from Breguet. Other
product launches are planned for spring 2011. s.
INVESTMENTS
IN THE US MARKET Numerous
recent surveys, as well as the 2010 AFIRE Association of Foreign Investors in
Real Estate , survey, indicate that the US is viewed as a prime target for real
estate investments by international investors. Yet, transactions by foreign investors
so far this year are barely above 2009 levels. |
AXA
REAL ESTATE INVESTMENT MANAGERS ANNOUNCES THE FIRST CLOSE OF ITS PAN-EUROPEAN
FUND, DEVELOPMENT VENTURE
III  | | The
new Axa Building, to be completed in 2010, named Tour First CB31 in Paris la Défense,
the most important European Business District, |
AXA Real Estate Investment Managers “AXA Real Estate”, the leading real estate
manager in Europe and second globally* with €38.2 billion of assets under management,
announces the first close of its pan-European development fund, Development Venture
III (the “Fund”). At
first closing, €230m had been raised from four European investors, together with
co-investment from insurance companies of the AXA Group. There remains a strong
interest from other investors resulting in a slightly higher amount for a second
closing, which has been earmarked for September. Overall the fund equity raising
will be capped at €600m with a target IRR of 25% gross. The
Fund is an opportunistic vehicle which will invest in green and brown field sites,
existing properties which require extensive redevelopment and development joint
ventures. Targeting
mainly offices, but also retail, logistics, hotels and mixed used real estate,
it will have a significant focus on Paris and will also make use of the specialist
local development expertise of its teams in London, Milan, Madrid and in major
German cities. Individual development projects are expected to have a minimum
end value in excess of €300m. Development
Venture III is the third development fund launched by AXA Real Estate to date,
following on from the successful performances of the previous two development
funds, launched in 2001 and 2004. These
funds combined, have completed in excess of €2.3bn of developments across Europe,
providing its investors with IRRs in excess of 40% pa on a project level. AXA
Real Estate has a dedicated pan-European development team of over 25 people located
across major European cities, responsible for managing all stages of the development
process, from sourcing and deal execution to engineers and architects. The
development team has completed in excess of 250 projects with a combined value
in excess of €7bn over the last 10 years, including 15 major corporate headquarters.
Dennis Lopez, AXA Real Estate’s Global Chief Investment Officer, commented: “Development
Venture III builds on the highly successful track record of our two previous development
funds, which have provided our investors with exceptional returns. With a well
established in-house team of professionals experienced in managing every stage
of development, we will seek to secure a broad range of opportunities, ensuring
we retain an appropriate risk profile for the Fund. “
Eric Stampfli, AXA Real Estate’s Development Funds Director added: “We believe
that the launch of this development fund at this stage in the market cycle will
enable us to deliver both speculative and pre-let assets into targeted markets
where we see restricted supply and strong tenant demand, offering the potential
for strong value creation for our investors. Source
Axa investment managers
| |
STARLING
HOTEL NEW BRAND IN SWITZERLAND New
brand for hotels and resorts created in Switzerland: Crown Plaza Geneva became
from January Starling Hotel which is the larger hotel in Switzerland with 486
rooms.is the second hotel managed by the new brand after the EPF hotel in the
campus of the Lausanne university.
CREDIT
SUISSE GROUP CS SOLD OFF A $2.8 BILLION COMMERCIAL PROPERTY LOAN PORTFOLLIO TO
APOLLO MANAGEMENT FOR $1.2 BILLION Founded
in 1990, Apollo is a recognized leader in private equity investing, having invested
more than $14 billion since its founding. Since its inception, Apollo has raised
more than $25 billion in capital, primarily from institutional investors. Apollo
traditionally has focused on companies that it believes are undervalued yet have
successful business models, strong cash flows and prospects for value creation.
The Apollo investment professionals’ disciplined, value-oriented strategy has
sought to identify opportunities in all investment environments, selecting from
a range of approaches, such as corporate partner or traditional buyouts, distressed
debt buyouts or more liquid, non-control distressed debt investments. The Apollo
investment professionals have sought through this strategy to provide investors
with attractive returns while minimizing the risk of capital loss throughout economic
cycles. WestImmo
London provides bilateral financing in the UK and Continental Europe
WestImmo London provides
bilateral financing in the UK and Continental Europe. In addition to WestImmo’s
strategy of medium to large scale debt arrangement, the London Branch continues
to provide clients with tailored bilateral solutions across Europe. During
recent weeks, WestImmo has arranged and underwritten the following acquisition
loans. €31m to assist in the purchase by Resolution Properties of the Galeria
Pomorska shopping centre in Bydgoszcz (Poland), a modern retail scheme with over
100 shop units built in 2003. £32m supporting the acquisition by Rockspring Property
Investment of two shopping centres in Aberdeen and Blaydon (United Kingdom). The
Mall Shopping Centre (Aberdeen) comprises 190,000 sq ft of retail accommodation
with 24 retail units while the The Precinct (Blaydon) comprises of 47 retail units
(93,200 sq ft) and 4 small office suites (3,300 sq ft). £23m for the purchase
by a private overseas investor of 15/17 Long Acre, part retail (18,406 sqft) /
part office (24,121 sq ft) building in the Covent Garden area of London (United
Kingdom). Peter Denton, Head
of the London Branch said “It is as important for the bank to bilaterally support
our UK investor base across Europe as it is to take core roles in larger transactions.
Our activitiesover recent
weeks underpin this.”
| |
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