Ian Houston
Singapore Spring
Singapore Spring

Changing Sentiment

  • All the recent political and economic upheaval has unnerved investors and encouraged them to disappear off on early, and extended, summer holidays.

  • Whilst holding steady for now, asset valuations are under scrutiny, not least as rising borrowing costs are eroding on net income.

  • As one of the key drivers of real estate activity, Private Equity firms will be particularly susceptible to less favourable debt markets. Yet, there is a record amount of PE ‘dry-powder’ seeking a home.

  • Unsurprisingly, Bull recommends that investors should hold their nerve and wait for decent buying opportunities. Bear is more faint-hearted.

 FOLLOW THEIR CHAT HERE

Leisure - Play Time?

  • After a week stuck at home due to train strikes, Bull and Bear meet up in their usual pub to discuss the hospitality sector and explore whether it should be on investors’ buy-lists.

  • The hospitality sector represents 10% of UK employment, 6% of businesses and 5% of UK GDP.

  • According to UKHospitality, more than 10,000 pubs and restaurants are at risk of closure. Lots of independent operators are already handing in their keys and walking away.

  • According to Knight Frank/MSCI, between 1981 and 2020, Leisure Parks considerably out-performed virtually every other mainstream property asset class, delivering an annual average total return of +11.2% (All Property +8.6%, All Retail +8.0%).

  • The current spread in yields between leisure and the other main sectors is pretty eye watering.

FOLLOW THEIR CHAT HERE

World Cities | Happiness

  • Bear is not happy. He has been overcome by the recent deluge of bad economic, financial and political news.

  • Bull tries to cheer him up with good news on three fronts - world cities, the happiest places and the most environmentally friendly countries.

  • London tops St Bride’s Annual World Cities chart again. This is the tenth time in a row.

  • But bad behaviour could be costly to London’s international reputation.

 FOLLOW THEIR CHAT HERE

Drones - Ready for take off?

  • After witnessing the capability of drone technology at the spectacular Jubilee light show over Buckingham Palace, Bull & Bear discuss why the property industry is yet to harness the full potential of these autonomous flying vehicles.

  • They review drones' current uses in the industry and the likely areas for potential drone expansion, particularly in the warehouse and logistics sector where they have the potential to revolutionise inventory management.

  • Are we really moving towards a world where thousands of drones buzz over our towns and cities every day delivering groceries and parcels? Or will the inherent risks of flying vehicles, and the regulatory minefield in which they'll have to operate, limit the extent of their commercial use?

 FOLLOW THEIR CHAT HERE

A Cunning Plan

Bull: Hey Bear, I have a cunning plan.
Bear: What?
Bull: Let’s skip this week’s edition of The Weekly. With all the celebrations going on, I bet no-one will even notice!
Bear: Now, that's a great idea. We can still show a ‘Click Here’ box below to fool everyone, but, if anyone does try it, it won’t actually lead to anything, other than a photo of our street party. We can blame it on an unfortunate IT fault.
Bull: Smart thinking! What are our chances of getting away with it? You don’t think St Bride’s will get all grumpy and dock our pay?
Bear: No chance. I know for a fact that they are all out celebrating the Queen’s Platinum Jubilee. And I do wonder whether they are likely to be in a fit state to read it, anyway!
Bull: Okay. Let’s do it. Or rather, let’s not do it!
Bear: Agreed. In which case, let’s get back down to the party with the rest of the gang.
Bull: Great. Enjoy your Sunday!

FOLLOW THEIR CHAT HERE