Real Estate Investment Soars in Northern Ireland
According to property agents CBRE, around 300,000 square feet of office leasing activity will be signed off in Belfast in the final three months of this year, making it one of the busiest quarters since the recession and bringing property investment over the year to £500m.
The report says the office market has been buoyed by the fact that City Quays 2 is now under construction and a number of new schemes are in the planning process which will eventually see much-needed grade A office space being provided.
Recent significant investments include Fairhill shopping centre in Ballymena, which sold for £45.8m reflecting a yield of 8.43% as well as the Bloomfield centre in Bangor which has a sale agree close to the £54m asking price.
Other real estate investments currently being marketed include Damolly Retail Park in Newry with a guide price of £33.5m, Tesco Extra at Craigavo asking £25m and Lisnagelvin shopping centre in Derry at £17m.
Retail vacancy rates have diminished in 2015
The retail sector has had a number of boosts in Northern Ireland this year with national retailers including Yours Clothing, Bon March and Schuh Kids opening in CastleCourt shopping centre. Dunnes Stores is due to revamp and extend its flagship store at the Abbey Centre where Next will be carrying out a similar project.
Retail vacancy rates have diminished in 2015, with Donegall Place fully let and the former Barrett’s store reportedly let to Inditex brand, Stradivarious. Boux Avenue recently opened in Victoria Square and CEX and Uberfone have leased accommodation at Rushmere shopping centre.
Industrial rents have increased for the first time in several years in Northern Ireland due to a shortage of prime accommodation. Prime headline rents are now in the order of £3.50 per square foot.
The hospitality sector has a number of promising schemes in the pipeline with Ten Square Hotel in Belfast applying to build a 71-bed extension, permission granted to convert Windsor House into a 200-bed four star hotel for the Hastings Group and Nightclub El Divino, currently for sale at £1.75m.
Brian Lavery, managing director at CBRE Belfast said: ” Now entering the final two months of the year we are set to see considerable activity in the local commercial property market. As we have seen over the last number of years, there is a tendency for a large amount of transactional activity to conclude in the last few weeks of the year “.
” The increasing surge in the office market and rising rents has coincided with upward pressure on rents in the industrial and retail sectors. We recently hosted a conference at our London HQ where we were able to highlight the investment opportunities in the Northern Ireland market due to the notable pricing differential between Belfast and competing UK cities “.
” Despite any political uncertainty and on-going negotiations, Northern Ireland is set for a busy two months ahead as the usual clamour to get deals signed by year-end kicks off. Indeed CBRE have moved into our new office at Linenhall Street and we look forward to welcoming our clients to our new premises in the coming weeks and months “.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Turkey Emerges as Top Golf Destination in 2015
The Turkish Airlines Open has been referred to as the latest and most exciting addition to the European Tour calendar, becoming the penultimate event of the high profile International golfing tournament in 2015.
A report published by auditors KPMG during the Turkish Airlines Open identifies Turkey as a rising star among golf destinations, following a phenomenal surge in the country’s golf tourism over the past decade. The Open is set to continue as part of the European Tour’s Final Series for at least another three years and KPMG’s research reveals considerable potential for golf to continue to grow in Turkey as more courses and facilities are created.
According to the report, golf has played a pivotal role in the remarkable growth of tourism in Turkey , particularly over the last decade, moving from 12th in the world in 2004 to sixth in 2014 in terms of the number of tourists the company welcomes. Turkey now receives 12% of its GDP through the travel and tourism sector and golf plays a significant role in the country’s appeal to tourists. The report states: ” Turkey has led the way among emerging markets in developing a competitive and attractive golfing offering “.
The report shows that golf in Turkey remains focused on the area known as the ‘Golf Coast’, which is located around Antalya. Belek has become particularly popular and is an area that has experienced ‘extraordinary growth’ in the past ten years compared to the rest of Europe. Since 2004 the number of golf clubs in the area has tripled and the number of rounds played is now over two and a half times higher. In 2014 a whopping 513,000 rounds of golf were played in the region and KPMG found that Belek now ranks as the top performing destination in the Mediterranean.
The growth of the game in Turkey, although primarily fueled by tourism is also stimulating golfing talent among Turkey’s population – in particular with younger golfers. The Turkish Golf Federation has a 45% junior membership, representing the highest proportion of young players of any federation in Europe.
Ahmet Ağaoğlu, the president of the Turkish Golf Federation, said: ” It has been my pleasure to see the growth of this great sport in my country over the past few years. The report’s findings are no surprise to me, as I see every day the enthusiasm and excitement people get from playing golf in this beautiful country. I look forward to seeing the continued growth of Turkey as golf’s rising star “.
The global head of sport at KPMG, Andrea Sartori, said: ” Our findings show that Turkey has great development potential. With a progressing tourism industry, fantastic climatic conditions, a highly successful junior program, and the commitment of stakeholders and sponsors to continue to support the game, golf in Turkey looks to have a very bright future “.
Golf tourism remains a significant pull for visitors throughout Europe, particularly in Spain and Portugal where there have been many world-class golf courses attracting tourists for decades. However, the emergence of Turkey in the international golfing calendar as a destination for world champion players is set to place the country very much under the radar of golfers around the world seeking new challenges at the exciting courses available there.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Bahrain’s Investcorp Targets Push into European Property
Investcorp, one of the biggest foreign buyers of US real estate and an early backer of luxury brands like Gucci and Tiffany & Co., is planning to buy European property for the first time, said its recently appointed executive chairman.
” We want to do things we haven’t done before within our areas of expertise. We’re thinking about Europe now, ” said Mohammed Al Ardhi, who took over the top job at Investcorp in June, in an interview with the Wall Street Journal. He added that Investcorp is assessing the right opportunities to target in European real estate, particularly in the UK and Germany.
The asset management firm is considering whether to buy an existing European real estate investment business or build one itself, he said.
Investcorp has$2bn invested in real estate assets on top of more than $8bn in hedge funds and private equity and has poured around $1bn into American property in the past year, including student housing in California and Florida and commercial property in the Northeast. It currently has no real estate investments outside the US.
Investcorp will focus on commercial and residential real estate but not on the trophy assets targeted by many overseas investors, particularly in central London and the firm will continue to expand its US property portfolio.
Investment in European commercial real estate is surging. In the 12 months through the end of the third quarter, investment volumes reached nearly €238bn ($263bn), the highest level on record, according to data from broker Cushman & Wakefield . The previous high of almost €235bn for the comparable period was in 2007.
With interest rates low, returns on property appear attractive compared with other asset classes like bonds and demand for real estate in Europe shows no signs of slowing. Investcorp’s push into Europe will also involve trying to target more investment from the region’s ultra-high net worth individuals and families, Mr Al Ardhi said.
Earlier this month, the firm bought eight residential properties in Las Vegas, Denver, Chicago, Atlanta and Dallas for approximately $400m. All eight were so-called multifamily rental properties, a sector Investcorp has been involved with in the past.
For property investors in Europe with smaller budgets, the entrance of big players into the arena indicates there is still value to be had in real estate markets, particularly in central London and in the five big cities of Germany where Investcorp are zooming in.
It’s always worth making particular note of investment activity in commercial markets to find the best value in residential property. As labour markets expand and companies fill newly constructed office buildings, retail and industrial sites, demand for residential property naturally increases as a result and a dynamic is created that presents value to savvy buyers.
The principal interest for large-scale investors in residential property has been in income generating assets in 2015. Properties that provide homes to specific groups like students, hospital staff and low-income families are generally the vehicles of choice for consistent rental yields.
Article by +Roxanne James on behalf of Propertyshowrooms.com
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