London property company collapses into administration

A London property business selling and developing overseas homes has collapsed into administration.

It is thought that creditors could include many British buyers who have put down substantial deposits for properties that have yet to be finished.

Aston Lloyd & Partners International, together with its sister company Aston Hotel Sofia, specialised in ‘emerging markets’ such as Bulgaria, Turkey, Slovakia and Northern Cyprus.

At the time of administration, Aston had over €70m-worth of developments under management including properties ranging from luxury villas to a four-star hotel, with sites in various stages of development.

Real estate in emerging economies outperform Eurozone and UK

Property markets in the more dynamic economies of South America, Asia and Eastern Europe are outperforming those in the UK and Eurozone, says the RICS Global Property Survey for Q2 2010.

Occupier demand is rising in the majority of countries across the globe with the notable exception of the UK and Eurozone countries where the tough measures that have been taken to reduce fiscal deficits appear to be having a more pronounced impact on the appetite of businesses to take up new space.

Significantly, France is bucking the negative Eurozone trend with more material signs of an upturn in sentiment towards real estate reflecting, in part, the relatively resilient performance from the domestic economy. Significantly, surveyors in the US reported a rise in tenant demand across all three sectors for the first time in three years.

Brazil is leading the way with the net balance of surveyors reporting a rise in occupier demand moving from 70 percent to 85 percent with markets in Peru and China also performing well. By way of contrast, demand in the UK turned negative for the first time in a year with the net balance falling from a positive 14 percent to a negative 4 percent while the net balances in Spain, Germany and Greece are all in negative territory.

Transactions fell in the UK for the first time in a year with the net balance of surveyors reporting a fall in activity sliding from a positive 24 percent to a negative 5 percent. More surveyors again reported a drop (than a rise) in activity in the UAE and Greece.

Indicators in China still remain strong despite measures introduced by the Chinese government to address the property boom. Indicators for occupier demand, rental expectations and the number of investment bidders per property all remain firmly in positive territory.

Elsewhere in Asia, the latest numbers from India suggest a strong showing from real estate in the second quarter despite the increase in interest rates.

Looking forward into the third quarter of 2010, sentiment towards capital values is particularly strong in France, Peru and Brazil while surveyors are most optimistic on rental increases in Brazil, Hong Kong and Peru.

Other key points include:

• New development starts are rising in Brazil, Peru and Argentina
• Surveyors report first declines in Japanese yields since 2007 on uptick in investment demand
• Investment bidders per property rose at a faster pace in the US
• Capital values are still declining in Ireland, Spain and Greece
• Occupier enquiries are strong in Brazil and Republic of Ireland
• UAE indicators are less negative than in Q1
• Rents are now increasing in the Ukraine

The real estate world continues to be split broadly speaking between the emerging and developed economies. Strong growth in many of the former, including the likes of Brazil, Hong Kong and India, is continuing to boost demand for new space from occupiers as well as encouraging investment activity. Meanwhile in many of the latter, fiscal retrenchment allied to bank deleveraging continues to place significant obstacles in the way of a meaningful recovery in the commercial property market.”
Simon Rubinsohn, RICS chief economist

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Foreign Property Investors Committed to the US but London Emerges as Top Spot,

Foreign investors in real estate are committed to the US as their preferred property investment opportunity, it is claimed in a new survey.

The sentiment is underscored by a dramatic increase in the number of respondents identifying the US as best for capital appreciation. Over half, some 51%, said so in the 18th annual survey from the Association of Foreign Investors in Real Estate (AFIRE). This is up from 37% in 2008, 26% in 2007 and 23% in 2006.

The survey of the association's 200 members that own more than $842 billion of real estate globally including $304 billion in the US, also found that the last time respondents' perceptions for US real estate were this strong was in 2003 when the percentage was also 51.

The UK is the second best investment prospect for capital appreciation, receiving 30% of votes, with China in third at 10%.

'Although foreign investors expressed every intent to resume investing in 2009, like everyone else, their plans were sidelined by a paralyzed marketplace with no precedent and limited investment opportunities,' said Werner Sohier, AFIRE chairman.

'However, new money is becoming available and the survey points to an increased focus and interest in a few select markets for 2010, especially London and in the US, where prospects appear to be brightening,' he added.

Investors also said that they plan to increase US allocations above 2009 levels by 62% for equity and 83% for debt and at least half the survey respondents report a stronger appetite for both debt and equity investments in the US than in other countries.

US cities representing the best investment opportunities were named as Washington DC in first place followed by New York, San Francisco, Boston and Los Angeles in fifth place.

The top five emerging markets were named as China, Brazil, India, Mexico, and Turkey. However green attributes are becoming more influential. Some 14% said green issues significantly influence their decision‐making when considering a property while 70% said green attributes were somewhat of an influence. In the 2009 survey, the numbers were 12% and 60% respectively.

World Cup Impact on Property Investment

From the opulent millionaires' row on Cape Town's beachfront to the modest homes of Soweto township, South Africans are dreaming of a bonanza of cash from next year's World Cup.

Some are preparing to move out of their homes in the hope of renting them to well-heeled visitors for a one-month flood of foreign cash.

Prices for some private apartments in Johannesburg and elsewhere have rocketed recently to three, four and even six times normal, even before most fans have decided where to stay.

In Cape Town's "golden mile" along the beach, some owners of luxurious mansions overlooking the sea and Table Mountain were looking for rents of 90,000 rand ($12,100) or more per day, said Samuel Seeff, one of South Africa's top estate agents.

Such homes, offered to big corporations and in particular World Cup sponsors, would house five or more executives and provide swimming pools, jacuzzis, home theatres and decks from which to admire the stunning views, he said.

The spectacular houses are also protected from South Africa's frighteningly violent criminals with state-of-the-art security measures that are routine among the wealthy here.

At the opposite end of the scale, owners who converted their houses into bed and breakfasts in the historic center of Soweto township are also expecting plenty of World Cup tourists next June and July, but plan to charge as little as 350 rand ($47) per night, with none of the huge price hikes seen elsewhere.

"I don't have World Cup rates," said Dolly Hlophe, who runs a neat bed and breakfast from her home, shaded by a beautifully tended garden on a street in Soweto near Archbishop Desmond Tutu's home.

BIG PROFITS

Although big profits are undoubtedly there to be had -- 450,000 visitors are expected for the World Cup -- experts say the hopes of some property owners could be misplaced as demand slumps below expectations in certain cities, depending on where big teams such as Brazil, England and Germany play.

Like everything else about the World Cup, including plans for where to deploy a fleet of planes, trains and buses, everything is hanging on the tournament draw on December 4, when the location of each team's first-round matches will be decided.

Even before the draw, authorities and some more thoughtful South Africans are worried that too much greed will alienate the visitors and dash hopes that a successful World Cup will stimulate a flood of future tourists by introducing fans to spectacular sights from game parks to glorious beaches.

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