Post on 02-Jan-2016
description
transcript
The Eaton Active
Special Opportunity
Property Fund
Market UpdateMay 2009
“Market Turning”
• The Current Market Opportunity• The Eaton Fund - Adding Value
Contents
The Current Market Opportunity
An Abrupt Correction
2009
Real initial yields at historic highs Inflation adjusted initial yields
Property Yields v Cost of DebtHighest Since 1991
Market Sentiment Changing
Prime Yields Hardening
The Buying Opportunity
| 2009 |
The Current Market – DealsExamples of current high yield investment grade propositions
Significant Players Back In The Market
• Mould & Vaughan (London and Stamford)• Nick Leslau (Prestbury)• John Caudwell (Phones4U) • David Whelan (JJB, Wigan Athletic)• WW Advisors (Middle East Investors)• Stenham UK Property Fund• BP Pension Fund• Moorfield • Mars Pension Fund• AFIAA (Swiss Pension Fund)• IAK (German Pension Fund)• J P Morgan
The Current Market
• Prime Yields may have ‘topped out’• Investment Grade Yields available 7.5 – 9%• Market Bottoming Out• Asset Management and Planning Angles still overly
discounted• Bank finance - terms easing – low fixed rates• Competition for best deals increasing• Smart Money and Institutions back in the Market
The Eaton Fund
Adding Capital Value
The Eaton Fund – Adding Value
• Takes Advantage of Exceptional Market Conditions • Highly Experienced Team with Good Track Record• Adding Capital Value (not passive hold)
• Asset Management Angles• Planning Consents
• High Rental Yields• Cash Generative • Opportunistic but with Defensive Qualities
Summary
• Abrupt market correction (25-30%)
• Inflation adjusted yields now at a post war high
• Prime Rental Yields hardening
• Bank finance easing
• Smart Investors (and Institutions) back in the market
• Market turning (very best deals possibly gone?)
• Eaton – benefit of high rental yields and actively adding
capital value