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1. 01 02 03 04 05 06 07 08 09 10 >
The Brief.
Property Investment News that matters
EDITION SIX

2. Wesly Jay
IPIN Portfolio Advisor
01 02 03 04 05 06 07 08 09 10
So Christmas is practically upon us.
Another year for reflection at IPIN and
interesting to see how our Secure Exit
Strategy™ has progressed since its first
application back in 2009. Not only has this
year seen the most new projects launched,
but we’ve also seen the SES applied to
4 different asset classes – Care Homes,
Student Accommodation, Hotel and Serviced
Apartments. Our developments are constantly
increasing in value and sited in increasingly
high-demand locations, both synonymous with
success in the construction industry. With some
of our highest profile projects to date in the
pipeline, 2013 promises to be an exciting year.
Contents
02 welcomE
From Wesly Jay – IPIN Portfolio Advisor
03 ON THE RIGHT TRACK
UK Crossrail project to push up local
property prices
04 PLAYNG THE WAITING GAME
End of Olympics boosts London housing activity
05 THE TOWERS OF LONDON
Changing the city skyline
06 THAT’LL TEACH YOU!
UK student housing is top property asset
07 life’s little luxuries
More shoebox homes needed in world cities
08 goOd things come to those who wait
Investors snap up distressed properties in Ireland
10 the last word
New Secure Exit Strategy™ Application
The Brief.

3. 01 02 03 04 05 06 07 08 09 10
UK Crossrail project to push up
local property prices
On the
right track
Residential property prices along the £16 billion
Crossrail route could appreciate by up to 25%
over the next decade, according to a study by
property consultancy GVA.
If accurate the rail link, from Maidenhead in the
west to Shenfield and Abbey Wood in the east,
could add as much as £5.5 billion to property
values by 2021.
The research looked at residential and
commercial developments within 1km of new
stations on the route and found properties
in places such as Farringdon, Whitechapel,
Custom House, Woolwich and Abbey Wood,
Southall, Ealing Broadway, Southall, Hayes and
Harlington, could benefit the most from the
new link.
Meanwhile towns at either end of Crossrail,
in Berkshire and Essex, could expect to see
property prices rise by 20% above the baseline
trend, the study showed.
According to the report, as many as 57,000
new homes and 3.25m square metres of
commercial space could be built by developers
close to the new stations.
A total of eight new stations in central London
and Docklands and almost 120km of track will
link Maidenhead and Heathrow with Shenfield
and Abbey Wood. Up to 24 trains an hour
will operate in the central section between
Paddington and Whitechapel during peak
periods, with each train able to carry 1,500
passengers. Crossrail services are due to get
underway in 2018.
The Brief.

4. 01 02 03 04 05 06 07 08 09 10
During almost six weeks of the Olympic and
Paralympic Games in London, the amount of
people out looking at property fell as many
Britons spent time watching sporting events
instead.
Research conducted by the Royal Institute of
Chartered Surveyors reveals that during the
Olympic Games 9% more surveyors reported
falls in demand, in comparison to 4% in July,
illustrating the fact that the Olympics were a
genuine distraction for potential buyers.
“Understandably, the amount of people out
looking at property fell away slightly,” said
Ian Perry of the Royal Institute of Chartered
Surveyors.
However, with London’s golden summer now a
fading memory, more people have turned their
attentions back to property resulting in greater
activity, particularly in the prime Central London
property market.
The latest Cluttons Residential Investment
Monitor report shows that activity in the prime
Central London property market has risen
sharply since the Olympic Games ended helping
to push property values higher.
The average price of a home in London
appreciated by 3.1% during the third quarter of
this year, Cluttons said. Home prices in prime
Central London are now 7.1% higher than the
corresponding period last year.
Activity in the market has been fuelled by high
international demand, with many homebuyers
coming from across Asia, Russia, Western and
Eastern Europe.
Sue Foxley, head of research, Cluttons,
commented: “Despite the promising growth in
rental values this quarter, we expect average
rents in prime Central London to end the year
marginally negative, or flat at best. This is
due to a market re-adjustment following the
unusual and unsustainable pace of growth
recorded in 2011. However, as demand is
still outpacing available properties, we are
expecting a slight adjustment rather than a
significant decrease.”
“Central north west London was the best
performing London region during Q3 2012, with
an outstanding upturn of 7.5% in capital values
being recorded. Calculated yields in Maida
Vale and St. John’s Wood are consistently high,
reaching 6.38% and 6.36% respectively.”
Playing
the
waiting
game
End of Olympics boosts
London housing activity
The Brief.The Brief.

5. 01 02 03 04 05 06 07 08 09 10
Changing the city skyline
The Towers of London
With a wide selection of tall residential and
mixed-use towers set to be developed in London
over the next few years, the capital’s skyline is set
to alter dramatically, a new report shows.
The study, released by Knight Frank, EC Harris and
Barton Willmore, examined all recently completed
developments, as well as residential and mixed-
use towers that are either under construction or
in planning or pre-planning stages across London,
and found that towers are now a key feature of
the city’s planning pipeline.
With space restricted in London and the cost of
land rising, more house builders are now opting to
build high-rise schemes in the city in an attempt
to tackle the growing housing shortage.
The report, Tall Towers, reveals that there
are currently 25 residential or mixed-use
developments with towers of at least 20 storeys
currently under construction. A further 78 schemes
have been given the green light to be developed.
Unsurprisingly, the majority of the tower schemes
in the capital will feature luxury apartments
to meet growing demand from national and
international homebuyers.
The report also found that the average price of an
apartment in a tower block in the city rises by 1.5
per cent per floor as the views of the city improve.
Chris Brett, Partner at Barton Willmore,
commented: “In a thriving city such as London,
tall towers work and are recognised as having
an important role to play. They allow many
thousands more people to live and work in the
central zone and near major transport hubs and
have tremendous power to regenerate the area
around them.”
The Brief.

6. 01 02 03 04 05 06 07 08 09 10
That’ll teach you!
With rental values rising, student housing
has emerged as the best-performing
property asset in both the UK and the USA,
with many investors achieving double-digit
returns, fresh data shows.
According to IPD, student housing funds in
the UK have returned close to 12% since
the start of the year, compared with 1.2%
for all property, 8.2% for equities and 4.9%
for gilts, according to data from IPD, the
benchmark property index.
The top performing US funds, meanwhile,
are generating returns of up to 35%,
according to Jones Lang LaSalle (JLL), the
property consultancy.
‘The student housing sector has ballooned
from a fringe investment 10 years ago to
a global market worth $200bn today’, said
a Financial Times report. The growth has
been underpinned by an increase in the
volume of students enrolling on university
courses, up from 98 million in 2000 to 165
million in 2011.
Philip Hillman, director of student housing
and higher education at JLL, commented:
“Not so long ago, investors looked at
student housing as an alternative property
type. It is hard to justify that now, as it is
becoming a must-have investment for most
large funds.
“It tends to do well in times of economic
downturn because students will stay longer
at university trying to get skilled-up rather
than entering the job market.”
UK student housing is top property asset
The Brief.

7. 01 02 03 04 05 06 07 08 09 10
New build homes in London are often slammed
for being ‘shameful shoebox homes’ which are too
small for living, but it would seem that they are not
small enough.
Large growing populations and limited land supply
mean the world’s major cities, such as London,
are battling to provide affordable and accessible
homes for their working ‘squeezed middle’. So why
does the development of small, purpose-built units
for young singles and couples, so-called ‘shoebox
units’ attract such controversy, asks global real
estate services provider, Savills?
In its new report, Shoebox units – Is small smart or
is bigger better?, the firm champions the role the
shoebox unit can play in the residential markets
of key world cities, demonstrating that homes as
small as 250 square feet can successfully meet
the demand for city centre living amongst young
professionals, for whom affordability is severely
constrained.
The report contrasts the ‘new world’ markets
of Asia, where prime central shoebox unit
developments have proved popular and successful
in attracting premium values and the ‘old world’
cities where such units have attracted dissent.
So while Asian cities such as Hong Kong, Singapore
and Tokyo have not been squeamish about small
unit living, Savills points out that old world cities
like New York, Sydney and London have not yet
embarked on the experiment of high quality micro
unit developments in prime central locations which
are designed to target owner-occupier buyers,
investors and renters.
Yolande Barnes, director of Savills World Research,
says that it is now time for the old world to make
up its mind about the pay-off between size,
affordability and centrality in its cities.
“Opposition to shoebox developments as a means
of accommodating large numbers of young
professionals and key workers in central locations
has its roots in history,” said Barnes.
She added: “Many major cities have a horrible
legacy of poorly conceived small units – the
cramped tenements of New York and the ‘caged
homes’ of Hong Kong, for example. But while
some cities, particularly in Asia, have successfully
shaken off this heritage and created well-designed,
desirable units, policy makers and planners
in old world cities have been more reluctant
modernisers.”
Life’s little luxuries
More shoebox homes needed in world cities
The Brief.

8. 01 02 03 04 05 06 07 08 09 10
Investors snap up distressed properties in Ireland
Good things cometo
thosewho wait…
It was standing room only in October at
the largest ever Allsop Space auction at the
Shelbourne Hotel, Dublin, which attracted in
excess of 2,700 bidders. With the room full to
capacity, measures had to be taken to relay bids
from the street as investors took advantage of
heavily reduced property prices by snapping up
distressed homes across Ireland.
Aside from those in attendance, there were
also bidders who registered phone and Internet
bids from the USA, Australia, Nigeria,
Japan, Israel, Switzerland and the UK.
A total of 110 properties went under the
hammer (93% success rate) raising close to £15
million in the process, reflecting the fact that a
growing number of investors now believe that
the Irish property market is ripe for investment
following one of the most spectacular property
market crashes in the world.
The Brief.

9. 01 02 03 04 05 06 07 08 09 10
The first ever Irish real estate price register
has finally been launched in an effort to boost
transparency and install greater confidence in
the market.
The propertypriceregister.ie site allows users
to see how much properties in the country
have sold for since 1 January 2010.
The website also contains the price paid for
individual Irish real estate units and contains
details of all residential sales - both cash sales
and sales with mortgage.
It also includes the date of sale and the
address, including the house number, of each
residential property sold.
The information will be regularly updated by
the Property Services Regulatory Authority
(PSRA) using stamp duty figures from the
Revenue Commissioners, with the aim of
publishing price details within a month of the
date of property transaction.
The register is designed to increase the
quality of information available on the Irish
real estate market.
First ever Irish real estate price register is launched
The Irish property market
is ripe for investment
following one of the most
spectacular property
market crashes in the
world…
Speaking after the sale auctioneer Gary Murphy commented: “This is our most
successful auction in Ireland since the inaugural sale in April 2011. It’s very encouraging
to see how enthusiastically Irish and overseas buyers are now competing. Our sales are
an accepted part of the transactional landscape in Ireland now. The transparency and
certainty is very refreshing.”
He added: “This is the broadest cross section of property types that we have offered.
Lots ranged from apartments and Georgian town houses to pubs and hotels and from
convents to quarries. Pricing has been very keen and buyers were attracted by the
opportunity to invest in a reviving market at affordable levels.”
The Brief.

10. Hotel Apartments
Woolmanhill, Aberdeen (UK)
NEW Secure Exit Strategy™
Application
The last word…
✔ 16% Annulised ROI ✔ Max. 3 year term
✔ Deposit Protection ✔ Limited availability
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