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Crisis Investing in Europe
Crisis Investing in Europe
Crisis Investing in Europe
Crisis Investing in Europe
Crisis Investing in Europe
Crisis Investing in Europe
Crisis Investing in Europe
Crisis Investing in Europe
Crisis Investing in Europe
Crisis Investing in Europe
Crisis Investing in Europe
Crisis Investing in Europe
Crisis Investing in Europe
Crisis Investing in Europe
Crisis Investing in Europe
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Crisis Investing in Europe

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  • 1. Crisis Investing in Europe Toronto June 2010 SCHEDULE • Who are Torcana Ltd? • How is the economic crisis affecting European property markets? • The UK market and our latest discounted investment • The German market and property types we target • Questions
  • 2. Crisis investing in Europe Who are Torcana Ltd? A Dublin, London and Florida based investment specialist We promote a variety of real estate & energy investments in Germany, USA & UK No offplan, no tourist rentals Focus only on cash flow positive, high quality assets with very solid management in place and a clear resale market Further details and company profile available on Torcana.com
  • 3. How is the crisis affecting Europe Crisis Investing in Europe? (diff pic) Ireland, Spain, E. Europe, The United Kingdom • Prices doubled roughly every 5 years for 15 years between 1993-2007 • Construction industry represented unsustainable level of GDP • Almost every part of society / media became obsessed with property • Young people under a lot of pressure to get on the property ladder • Huge numbers of amateur buyers lost money • Financial institutions have made massive write downs on their loan books
  • 4. The United Kingdom The United Kingdom
  • 5. UK Economic Overview Overview The United Kingdom – Economic Worlds sixth largest economy with a population of 62 million The UK has a diverse economy, strong domestic market, stable government and sophisticated financial systems Service sector makes up 73% of GDP London is the most visited city in the world by a considerable margin A combination of the credit crunch, property downturn, demographic trends and dramatic slowdown in housing starts have all lead to serious supply shortages in major urban areas Torcana knows where these shortages will be most acute and use our contacts in the banking and construction industry to get huge discounts on cash flow positive properties within them
  • 6. The United Kingdom contd. UK Economic Overview • Areas and Types of Properties Available - First time buyers - 1 – 2 bed properties - Either central or commuter belt • What you should avoid - Offplan Properties - Very large properties - Areas with oversupply - Extremely large developments
  • 7. UK Economic Overviewrecovery The United Kingdom – Road to GDP GROWTH RATE – Gross domestic product increased by 0.3 per cent in the first quarter of 2010.
  • 8. W4 Wolverhampton (very near Birmingham) • 55 one & two bedroom luxury apartments • Just 5 minutes away from the city centre • 15 units have been set aside for Torcana investors • 38% discount off developer list prices • A selection of 1 and 2 bedrooms ranging from 556sq ft to 606 sq ft • Prices range from $79,000 - $119,000 • Net yields from 5.7% - 7.3% • 60-65% UK financing available
  • 9. W4 Wolverhampton (very near Birmingham)
  • 10. Germany Germany
  • 11. German Economy Worlds 3rd largest economy with a population of 82 million Safe haven for investors due to economic and asset price stability Out of recession Aug 09, 2010 growth forecast at 1.4% Unemployment 7.5% (Spain 20%, France 10.1%, USA 9.9%) The hub of the European economy
  • 12. German Property Market No property “bubble” in recent years means no “bust” in 2009-10. Strong banking sector German residential and commercial rents are up to 20% -50% lower than in other leading economies .... But yields are the same €100,000 in June 2010 costs $122,000 (USD) €100,000 in June 2009 cost $142,000 (USD) Commercial property transaction volumes in Q1 2010 up 175%
  • 13. German Deals We favour multi-tenanted properties with strong leases in mature areas We target established assets rather than new build. Existing properties are available at 50% - 80% of the build cost of a similar property Our target commercial tenants are the small and medium sized family/private businesses that are the heart of the German economy.
  • 14. German Deals These businesses (and half of all Germans) prefer to rent The preferred investment period is 5-7 years to take advantage of renewal of leases The properties pay their way each year after all costs and payment of full interest and capital to the bank
  • 15. Investing in Europe What Next? Come and talk to me Collect some handouts and detailed brochures Register your interest and receive detailed project information Come back at 4.50pm to hear more detail on my “Top three cash flow positive investments” Many thanks for listening... Colin Murphy Managing Director Torcana Ltd

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