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The Brief.
Property Investment News that matters

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As the holiday season draws on and the
Olympics come and go, we’re looking
forward to a return to normality and to
renewing conversations with a lot of our
Members. September, of course, sees the
first One-2-One event in London and a great
chance to meet many of you in person.
All sessions are now nearly at capacity, so
please don’t hesitate to let us know if you’re
thinking of attending. It’s important to us,
so space will be made as necessary. See the
final page in this edition of The Brief to find
out more.
Contents
02 contents
Welcome from our International Sales Manager
03 Home suite hotel
The Cavendish Hotel to become luxury
serviced apartments
05 on the up…
Dubai property market conditions improve
07 Back to the future
London property prices supported by housing shortage
08 rising tide
Florida property recovery insight
10 a room with a view
Growing UK hotel investment volumes
12 a tale of two cities
Prime central London prices hit new high
but pace of growth slows
14 IPIN one2one
Meet the IPIN Member Relations,
Sales Progression and Portfolio Advisor teams
Mike O’Riordan
International
Sales Manager
The Brief.
The Brief.

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The company will manage the 230-room hotel
from the fourth quarter of 2012 and will
subsequently transform the property into serviced
apartments under the premier Ascott The Residence
brand, renaming it Ascott St James London.
The Cavendish Hotel to become
luxury serviced apartments
The Cavendish Hotel in
London is to be turned into
a luxurious serviced residence
after being acquired by Ascott
Limited for £158.8 million.
Home suite hotel
The Brief.

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Aquisition of The Cavendish London increases Ascott’s
central London portfolio to seven properties. The hotel
transformation and rebranding will mark the expansion
of the Ascott brand in London and enhance the company’s
presence in Europe where it currently manages over
5,000 units across 45 properties in 20 cities.
The Cavendish London is well-located on Jermyn Street in
the St James’s area of Mayfair for business or leisure. Its rich
heritage dates back to the 1960s and it is surrounded by
some of London’s finest cultural, dining, shopping and leisure
attractions. In the immediate vicinity are The Royal Academy
of Arts, Fortnum Mason, Bond Street and the bespoke
tailors of Jermyn Street and Savile Row. West End theatres
and cinemas, Buckingham Palace and the relaxing open
spaces of Green Park and St James’s Park are also close by.
At The Cavendish London, guests can choose from 230
stylish rooms and suites that offer some of the best views in
London. For business travellers, there are five state-of-the-
art meeting rooms offering carbon-neutral meeting package
options and a business centre equipped with Apple iMac
computers. Wireless internet connection is also available
throughout the property.
The Cavendish London offers a choice of dining in the award-
winning Petrichor Restaurant, the chic Lounge and the
comfortable Lobby Bar. It also provides 24-hour concierge,
porter and room services and a car park.
Its rich heritage dates back to the 1960s and it is
surrounded by some of London’s finest cultural,
dining, shopping and leisure attractions
The Brief.

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Dubai property market conditions improve
On the up…
There are growing signs that the Dubai property market is firmly
on the road to recovery following the 2008/2009 crash that hit
Dubai investors during the international financial crisis.
The Brief.

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Property prices in Dubai have plummeted
by up to 70% over the past three years, as a
consequence of the economic crisis, a lack of
mortgage liquidity and a severe oversupply
of housing. But a closer look at the market
suggests that conditions are improving.
Property prices across parts of the emirate,
particularly at the high-end of the market,
are rising once more, led by Emaar’s
Arabian Ranches, where residential units
have appreciated by 24% over the past
year, according to a report from property
management company Asteco.
The villas in the Springs, which is part of the
Emirates Living community, and apartments
in Dubai Palm Jumeirah, traditional expat
communities, saw capital growth of 19% and
17%, respectively.
“After three years of declining rates and
limited sales activity, the real estate market
is on the way to recovery, with established
quality communities showing increases in
values and higher transaction volumes,”
said Elaine Jones, CEO at Asteco.
A separate report by CBRE also shows
that the rental maket is also improving
in Dubai – an attractive proposition for
buy-to-let investors.
CBRE data reveals that Dubai apartment and
villa rents increased by 2% in the second
quarter of this year, with the outlook for the
rest of the year described as steady.
The property firm reported that rents in
popular locations such as Downtown Dubai
have increased by between 5% and 8%.
Other locations have not fared so well,
however, with rents in Jumeirah Village
depreciated by 5%.
CBRE stated: ‘Although there are major villa
projects in the pipeline expected to enter the
market in phases during the coming months,
it is unlikely that this new supply will have
a significant impact on lease and occupancy
rates in established locations.’
Property prices
across parts of
the emirate,
particularly at
the high-end of
market, are rising
once more
The Brief.

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Back to
the future
London property prices
supported by housing shortage
Over the last decade London’s population
has increased by 850,000 whilst only 197,000
new homes have been built in the capital over
the same period, CBRE revealed in its latest
residential report. London is therefore bucking
the UK house price trend, and the wider
recession, with the significant supply and
demand imbalance continuing to push prices
higher across many parts of the capital,
as well as continued strong interest from
overseas investors.
Unless there is a sudden hike in the volume of
new homes being built, residential property
values in London will almost certainly increase
further, as demand continues to grow, on the
back of a rising population.
Jennet Siebrits, head of residential research,
CBRE, says that she expects the housing market
to remain subdued over the Olympics period
with attention firmly focused on sports rather
than property. But she describes London as “
a bright spot in the UK residential market”.
She commented: “Whilst it is hard to distinguish
the impact of one-off events such as the
Olympics and Jubilee on the housing market,
it is clear that the housing market is flat with
mortgage approvals edging downwards and a
corresponding dip in new lending.
“However, London is still a bright spot in the
UK residential market with a lack of supply and
strong interest from international buyers looking
for a safe haven for their money underpinning
house prices.”
The Brief.

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Florida property recovery insight
Rising tide…
Just five years ago, Florida was one
of the hottest property markets in the
world, attracting a large number of
national and international homebuyers.
But the sector was hard hit by the
collapse of the USA’s sub-prime
mortgage sector, causing property prices
to plummet by up to 75%, on the back
of a severe housing glut, as housing
demand waned. But conditions appear
to be improving.
There are growing signs that the
Florida property sector is firmly on
the road to recovery, thanks to a
sharp fall in housing inventory levels.
The Brief.

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The Florida property
market is starting
to make a strong
recovery after a long
and brutal downturn
The latest data provided by Florida
REALTORS show that in June of this
year, there were 112,365 homes
for sale in Florida, down 31% from
the previous year, culminating in a
housing shortage in some areas.
It would take six months for the
market to absorb current inventory -
down from 10 months a year ago.
The hike in demand is unsurprising
when looking at some of the
attractively priced properties available
with apartments starting from around
$50,000 (£32,000).
Colin Murphy of Florida-based estate
agents Torcana said: “In short, the
Florida property market is starting to
make a strong recovery after a long
and brutal downturn. Year-on-year
sales in Florida are up 43% for single
family homes and 33% for condos
and townhomes.”
Data from thee Orlando Regional
Realtor Association (ORRA) show that
the average price of an existing home
in Orlando increased by 15.7% in
the first half of 2012, from $108,000
to $125,000.
Property prices are also booming in
Miami, on the back of strong sales,
which set a new record in 2011,
exceeding transaction levels during
the height of the real estate boom
in 2005.
“Miami properties probably will
be around 20% higher than 2008,
and due to the high demand from
South American investors, I can see
this market continuing to rise faster
than the median growth achieved
in Florida,” said Loxley McKenzie of
property firm Colordarcy.
The Brief.

10. 01 02 03 04 05 06 07 08 09 10 11 12 13 14
A room
with a
view
The hotel investment sector in the UK was once again the most
liquid market during the first half of 2012 with hotel transaction
volumes amounting to £1.2, reflecting 37% of total EMEA
transaction volumes, according to Jones Lang LaSalle Hotels.
Growing UK hotel investment volumes
The Brief.

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Hotel investment volumes totalled
£3 billion, a 12% decline compared to
sales volumes in the first half of 2011.
The majority of transactions were single
asset sales, accounting for 64% of total EMEA
transaction volumes.
During Q1 2012 France remained the second
most active market with hotel transaction
volumes totalling £320 million, 11% of total
EMEA transaction volumes. Investment activity
was strong in Paris and nine hotels were sold
with a total value of £260 million.
In Germany, hotel transaction volumes totalled
£140 million, 5% of total EMEA transaction
volumes. Significant transactions included a
portfolio sale of two hotels in Berlin, the 4-star
153 bedroom Hotel Indigo Berlin and the
4-star 242 bedroom Holiday Inn Berlin Centre
both located at Alexanderplatz. Both properties
were sold by the Azure Property Group to Invesco
Real Estate for £48 million.
Christoph Härle, CEO Continental Europe, Jones
Lang LaSalle Hotels, said: “We observe continued
growth in trading fundamentals in many key
European hotel markets despite the economic
turmoil and uncertainty in the EuroZone.
Leisure travel remains buoyant and is fuelled
by continued growth in inbound tourism from
emerging markets in Asia and South America.
With demand growing and a decreasing number
of hotels in the development pipeline, a further
improvement in trading performance can be
expected in the short to medium term. This
should result in more attractive returns for
owners and underlines the attractiveness of
hotels as alternative real estate investments.”
We observe continued
growth in trading
fundamentals…despite
the economic turmoil
and uncertainty in
the EuroZone.
London accounted for 59% of UK
investment volumes or £632 million,
where activity was primarily driven by the
acquisition of eight upscale hotels in the
capital, including the 4-star 208 bedroom
Hoxton hotel which was sold for £64.5
million to private equity firm Ennismore
Capital and the 5-star 62 bedroom
Number 11 Cadogan Gardens that was
acquired for £31 million by
The Cadogan Estate.
However, despite strong demand in the
UK, hotel investment activity in EMEA
slightly weakened in the first six months
of 2012 when compared to the same
period in 2011.
The Brief.

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A tale
of two cities
But there are signs that the pace of capital
growth is starting to slow, particularly at
the high end of the market, where higher
stamp duty and the uncertainty surrounding
proposed tax changes for houses worth
£2m+ begin to weigh on the market.
The central London property market retained
its dominance in July, with a 0.5% increase
in average prices taking the value of prime
property to a new record high. However,
July’s pace of growth marks the most modest
monthly rise since October 2010.
Prime central London prices hit new high but pace of growth slows
The average price of a home in prime
central London is now 13% higher
than the previous market peak in
early 2008, as the capital remains a
key destination for investors looking
for ‘safe-haven’ assets.
The Brief.

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London still remains
a key destination
for investors looking
for safe-haven assets
So what is causing this slowdown? Knight
Frank’s Liam Bailey says that while focus
of the world may have turned to London
during the Olympics, the Eurozone
turmoil is still rumbling on with Spain
becoming the latest country to feel the
pressure.
“As such, London still remains a key
destination for investors looking for
‘safe-haven’ assets, a fact reflected
in the continued rise in interest from
prospective buyers, up 23% in the three
months to July compared to the previous
quarter,” he said.
“Rather it is developments closer to
home which are preoccupying those
in the market, namely the stamp duty
rises and proposed property tax changes
announced during the Budget in March,”
he added.
There is emerging evidence that the
rises in stamp duty are having an
impact on the market. And the on-going
consultation on the annual charges and
Capital Gains Tax which will be levied on
property worth £2m+ held in company
structures, is creating uncertainty and
causing some would-be buyers and
sellers to adopt a ‘wait and see’ attitude.
The final decision on the consultation will
be announced in this year’s pre-Budget
report or next year’s Budget.
July’s snapshot of the prime central
London market indicates that activity is
starting to recede from record heights
seen over the last year or two, to a more
moderate pace, indicating that price
growth may also slow over the coming
months.
The Brief.

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IPIN one2one is your opportunity to meet the IPIN Member Relations, Sales Progression and Portfolio Advisor teams
and in addition, key BridgePoint Ventures representatives.
Please contact your IPIN representative TODAY to book your place and avoid disappointment. Full agenda to be sent prior to the event.
The Brief.