Russell Millar

Today we published the CBRE UK Property Investment Yields for September 2024. We reported no change to yields as a pick up in deal volumes anticipated by many following the recent base rate cut is still awaited. A sector by sector summary is below. If you are interested in subscribing to our monthly yield publication or wish to discuss this further do reach out. Retail - Yields remain resilient for sub £5m lot sizes in prime locations. Secondary remains asset specific. Out of Town Retail - New opportunities awaited post summer as most existing stock now spoken for. Industrial - Most activity with multi let estates and opportunities where reversions are attractive. Offices - Slow pick up in transactions as stronger interest in larger lot sizes is awaited. Long Income - More stable yield categories as confidence improves. Hotels - No change in yields, however investment activity continues to gather pace fuelled by portfolio deals. Both the CBRE IP and Valuation teams are currently very active with significant mandates. Residential - Market continues to trend stable, with improved investment volumes anticipated following recent base rate cut and announcement of new Government. Student - Strong demand for the most prime properties, but purchasers pushing for meaningful discounts on non-core assets not meeting all best-in-class requirements.

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Arc & Co. has seen its volume of bridging loans arranged in H1 2024 rise to 43%, jumping from 29% in H2 2023. In the company’s Summer Real Estate Funding Report — based on the company’s completions across all elements of the business during the first half of 2024 — the firm reported that bridging was its largest loan type by volume, followed by commercial (accounting for 27% of all business) and marine (13%). Commenting on the results, Andrew Robinson, CEO at Arc & Co Group, said: "In the first half of 2024, the number of new clients we supported doubled." Read the full story at B&C: https://lnkd.in/eNPkT-X9

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Todays GreenStreet news leading article - mentioning again last weeks Urban Splash Residential Fund X Citu deal Reeves’ budget has also come in for criticism, with the £40bn tax hike and £30bn increase in borrowing savaged in the national press. Since Wednesday, UK 10-year Gilts have traded at around 20 basis points higher. For those who believe what the chancellor says, Reeves is stuck between a rock and hard place: wanting to spur investment, while plugging a pretty hefty funding hole. Yet the last seven days saw not just the announcement of a new £200m partnership between Urban Splash and Citu to deliver 600 single-family housing in Yorkshire, but also a £750m tie-up between Greykite and Gatehouse to build 2,500 homes around the country.  For those with ropey maths, that’s £950m invested into house building, and, following on from the news that CPP Investments and Howard Kennedywere planning to invest £1bn through a new single-family joint venture the week before, that means nearly £2bn in total.  It’s exactly the kind of investment the cash-strapped government wants: institutional cash, increasing house building, supplying a new tenure, at no cost to the exchequer, providing relatively affordable homes.

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Urban Splash Residential Fund and Citu partner for £200m UK housing deal By IPE 1 November 2024 The Urban Splash Residential Fund (USRF) has partnered with UK property developer Citu to secure a £200m (€237m) pipeline of sustainable homes in Northern England. The SURE Capital Partners-managed UK residential fund has agreed the partnership to enable it to gain priority access to Citu’s properties and single-family homes in Yorkshire over the next five years. The initial phase of the 600 homes partnership involves the acquisition of 52 homes in Leeds and Sheffield. Akeel Malik, partner at SURE Capital Partners, said: “This deal connects capital with regeneration, allowing us to play a pivotal role in creating vibrant new neighbourhoods. Leeds and Sheffield are exciting, transformative cities where people want to live, work and play, and we’re proud to help drive that change. “Our mission is to cultivate a portfolio of design-led homes for renters – an approach that aligns perfectly with Citu. We have found the ideal product in their award-winning homes and communities.” Tom Bloxham, partner at SURE Capital Partners, said: “SURE has investors ready to commit to design-led homes. It’s a concept that’s been proven with Urban Splash and now with Citu.” Bloxham said the partnership is another example of how SURE Capital is bringing UK and international institutional capital to work supporting UK “SME developers like CITU, Urban Splash and Javelin Block – with whom we completed a deal last year in Birmingham”. Jonathan Wilson, managing director at Citu, said: “Our growth strategy focuses on creating exceptional sustainable places with a variety of tenures, and we’re excited to introduce a rental offering to our developments both now and in the future, with a partner who shares our vision and responsibility. “This collaboration enables us to move ahead with confidence, and we look forward to the next steps.” We’re glad to see that you may be inspiring others with our journalistic content. We ask that you copy our content for personal use only, so as not to violate our Terms and Conditions. Otherwise, ask about our group memberships via [email protected]. Text copied from: https://lnkd.in/dxeEzxCx

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Finding the Perfect Commercial Space to Lease. Discover how a commercial lettings negotiator from Galaxy Real Estate can help you find the ideal commercial space for your business needs. 📞0208 004 1111 📧[email protected] #CommercialRealEstate #LeaseNegotiation #BusinessGrowth #SpaceSearch #GalaxyRealEstate

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#JDWJournal | Head of Sales, Jimmy Waight discusses how the peak of the spring market presents an opportune time for both buyers and sellers to make significant moves in the property market. Click here to read more 👇 https://lnkd.in/epF-zPwY #johndwood #spring #sales #estateagent #property #propertymarket

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Following last week’s piece on the Housing Bill, here are my thoughts on the Heat in Buildings Bill: EPC Ratings for the rental sector: Around 50% of properties on espc.com currently fall short of the proposed EPC rating of C. Despite previous delays. I believe the Government will still require this standard for rental properties by 2028. Labour’s target for England and Wales is 2030, but I suspect the SNP will want to lead the way on this. What this means for the lettings market and landlord sentiment remains to be seen. Clean Heating Systems: By 2045, all homes and businesses will need to transition to clean heating systems. Under the current proposal, from 2033, buyers of properties with gas heating will bear the cost of installing clean systems. However, I anticipate some flexibility on this. ESPC has long advocated for incentives, such as scrappage schemes and grants, to encourage earlier adoption. Shifting the full financial burden to buyers could impact the market, so I expect some adjustments. Summary: While the Government’s commitment to Net Zero by 2045 remains firm, the end of the Bute House Agreement with the Greens may lead to more consultation, softened targets, and potential deadline changes. We will of course continue to engage with Government on all of this and keep you posted! #Espc #Heatinbuildingbill #Change

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The latest RICS Residential Market Survey is out, highlighting growth around demand, sales, and new listings... https://lnkd.in/eaVNs7Qi #rics #surveys #homesurveys #growth #propertymarket

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