The document discusses opportunities in the UK real estate market post-Brexit. It notes that while Brexit has introduced uncertainty, investors dislike uncertainty and some asset prices may have overcorrected, creating mispricing opportunities. Specific opportunities mentioned include increased demand from private equity seeking higher yields, growth of build-to-rent developments, availability of patient capital for public sector projects, potential for distress in some sectors like housing, and redevelopment opportunities from insolvencies.

1. Getting over Regrexit
Post Brexit Real Estate
Opportunities
13th July 2016
Bruce Dear
Head of London Real Estate

2. The World of the Unexpected…

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Plans!?
"Any plan beats no plan"
Timothy Geithner - 2008
“The prime minister should have had a plan“
Iain Duncan-Smith - 2016
"Any plan beats no plan"
Mark Carney - 2016

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Canaries and Reasons to be Cheerful
− Be thankful for the Great Financial
Crisis of 2008
− Most investors dislike uncertainty
− The canaries are coughing
− Austerity is Posterity!

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Opportunities
PR engagement -
not just with the
obvious suspects
Product Provision
for People
Remaking the
Regulatory,
Business and Legal
Landscape

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Over correction as values decline
Mispricing
REPG Partner Away Day
*
* Not the worst performing Sterling…

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Sterling
Effect on inward investment…
Weak
sterling
Low
interest
rates
Falling
prices
*If they believe the UK story…

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Private equity
• Uncertain economies
bring higher yields
• Higher yields bring
private equity houses
• If they believe the
long-term UK story
Build to Rent
• Vital part of US and
European housing
solutions
• High land prices and
Help to Buy held it
back
• BTR’s big moment?
Patient Capital
• Government may not
be spending
• Patient institutional
capital
• Public sector must
create investible
propositions
• Keynsian Conversion
London market
• Buyers’ market?
• Declining occupier
demand?
• Passporting and
relocation issues
Housing
• Government policy was
to support the market
• Some price correction
likely
Distressed
opportunities
• A more conventional
downturn than 2007/8
• Insolvencies, pre-packs,
loan to own
• Development and
valuation risk

15. eversheds.com
©2015 Eversheds LLP
Eversheds LLP is a limited liability partnership
Bruce Dear
Head of London Real Estate