20
time to INVEST IN LONDON an opportunity to develop property in the world’s capital
| Date post: | 27-Mar-2016 |
| Category: |
Documents |
| Upload: | kreado-kreado |
| View: | 221 times |
| Download: | 1 times |
time to INVEST IN LONDON
an opportunity to develop property in the world’s capital
INVEST IN LONDON
CONTENTS
introduction
london overview
kreado services
collaboration profile
profile
a capital place for investors
how we can help
sidell gibson architects
london by numbers
medium scale case study
key people
top 10 reasons to invest
project process
large scale case study
6
8
14
18
12
16
7
9
15
17
3
4
5
“You find no man, at all intellectual, who is willing to leave London. No, Sir, when a man is tired of London, he is tired of life; for there is in London all that life can afford.”
Samuel Johnson (English poet, critic and writer)
View of the Thames River with the London Eye and the Houses of Parliament
6
introduction
profile
kreado is a UK-based company located in central London providing consulting services for property development and architectural design.
As London is considered the “World’s Capital” for many industries, with significant foreign-interest activity easily sus-tained within, it is the ideal location to invest in the property sector.
Development opportunities arise within this high-speed busi-ness environment at a spectacular rate.
We act as a representative to our clients abroad for their development projects in London and monitor the entire pro-cess that is particular to the building industry in the UK. We ensure that the investor benefits from a profitable return and also enjoys a rich experience through the design process.
This brochure is meant to give an impression of “why” and “how” to approach investing in London property and ex-press the services that kreado can provide to help.
contact
Holford Mews, Cruikshank StreetLondon, WC1X 9HWUnited Kingdom
+44 (0) 203 602 3181
INVEST IN LONDON
introduction
7
Alper has practiced architecture in the UK for over a decade, work-ing on prestigious high-end residential, commercial and mixed-use schemes. In 2008 he cofounded kreado to help clients abroad develop their investments in real estate within the UK.
Alper Gohkan ERDEM M.Sc., B.Arch, Managing Director
Dogan KARALAR M.B.A., BE.con, Managing Director
Gavin FUNG BSc(Hons), DipArch RIBA, ARB, MRIAI, Associate
Anthony KWAN B.Arch, B.E.S., Associate
Dogan is an economist who has developed businesses in Turkey and the UK. As cofounder, he represents the financial components of the company and is responsible for market research and analysis. He has created close relationships with leading property agents in London to find the best value for potential developments.
Gavin is a chartered architect with over 17 years of experience in mas-ter planning, urban and architectural design and has worked in the UK, Ireland and Hong Kong. He specializes in environmental design engi-neering. Gavin’s highly sustainable approach has won several awards for its implementation in housing schemes.
Anthony is responsible for much of the creative aspects of the company including architectural design, graphic design, marketing and visualiza-tion. With over 8 years of architecture work in the UK, in addition to 6 years international experience, he can design and deliver schemes at an exceptional speed.
key people
Our team is a composition of talented individuals with com-plementing skill sets. Our extensive experience in varying sectors allow us to provide a quality service to our clients that is a unique combination of financial savvy and design excellence.
london overview
8
a capital place for investors
The UK capital has opportunities for all investors: from those seeking core returns to those with an appetite for risk. Their enthusiasm is strengthened by London’s simplicity, transpar-ency and efficiency.
International investment is a solid feature of London’s prop-erty market, maintaining its presence even in the depth of the financial crisis – overseas investors spent almost £10bn on commercial property in 2008 and 2009. Overseas buy-ers accounted for half of all investment into central London in the first half of 2011. We are confident that this trend will continue.
One Hyde Park,
located in Knightsbridge, London,
completed in March 2009,
by Project Grande (Guernsey) Limited
The Shard,
located in Southwark, London,
completed in July 2012,
by Sellar Property Group
© C
an
dy a
nd
Ca
nd
y
INVEST IN LONDON
london overview
9
top 10 reasons to invest
reliability and low risk
predictability
international high de-mand with over 50 na-tionalities investing in the property market
prime triple-A credit rating
majority of property invest-ments are from overseas and independant from the general UK economy
sustained demand from UK financial sector buyers
insufficient property supply
attractive tax regime for overseas investors
simplicity and efficiency of the UK legal system and market practices
cash buyers, not dependant on mortgages
1
2
3
4
5
6
7
8
9
10
The Shard,
located in Southwark, London,
completed in July 2012,
by Sellar Property Group© T
he
Vie
w F
rom
Th
e S
ha
rd
10
© Renzo Piano Building Workshop 11
12
75%
480
15.2m
7.83m
£11.7bnThree quarters of Fortune 500 companies have a London office.
Investment volumes reached £11.7 billion, 41% ahead of the 2011 annual total. Activity has been driven by overseas equity, notably Asian investors accounting for 20% of the to-tal, the highest on record.
London is home to more than 480 overseas banks, more than any other city in the world. There are more Japanese banks than in Tokyo and more US banks than in New York. More than half of the businesses in the FTSE 100 and over a fifth of Eu-rope’s largest 500 companies have their headquarters here.
London continues to be a vibrant tourist destination, attracting 15.2 million in-ternational visitors in 2011, 3.4% more than in 2010.
Source: The BNP Paribas Real Estate Guide; Jones Lang lasalle The Central London Market Q3 2012
London’s population has grown every year since 1998 and stood at 7.83 million at the end of 2010. The upward trend is expected to continue until 2031.
13
London by Numbers
UK House Price ForecastsSource: Jones Lang LaSalle, Nationwide
It is a great time to make an invest-ment in the UK property market as house prices rise immediately from the time of purchase at a significant rate.
Central London House PricesSource: Land Registry
During the recession central London house prices showed great resiliency. It remains strong through times of insta-bility.
UK GDP Growth Above Trend by 2013Source: Jones Lang LaSalle, Oxford Economics
The UK economy is recovering from the recent recession. This recovery is large-ly fuelled by London’s business confi-dence.
© Jason Hawkes
kreado services
14
how we can help
Our team is assembled to successfully manage and com-plete every stage of a building project for investment in Lon-don. We can be involved from the onset of the process to the very end. Among other responsibilities, we are adept in searching sites to satisfy our client’s needs, negotiating con-tracts, appointing solicitors and third parties, testing sche-matic designs, creating production drawings, conducting tender actions, handling contract administration and finally selling the development.
We closely initiate and monitor these key operations on be-half of our clients to achieve impressive and controlled re-sults.
INVEST IN LONDON
kreado services
15
project process
The property development pro-cess is unique to every project and client but can be generally sum-marized by this diagram, which is the framework for our practice.
BRIEFdetails of our client’s
requirements are essential to search for
the right project
TENDER
SALE
MARKET RESEARCH
we especially concen-trate on “off-market”
projects
FEASIBILITYinitial study of the scheme
PRODUCTIONdetail design of the entire scheme
MARKETTING
CONSTRUCTION
BUYINGformal process that can be shortened for “cash buyers”
OFFERoffers are placed on
behalf of the client andnegotiations begin
DESIGNevaluation of the general
design to suit our client’s needs
kreado services
16
medium scale case study: chester street
This medium scale development opportunity is a Grade II Listed Freehold house in Belgravia. It benefits from hav-ing full planning permission for significant upgrades on the property. In order to eliminate our client’s risk on revenues, we aim to develop permission granted schemes that short-en the overall period of the investment. This particular ex-ample is minutes away from London’s well-known embas-sies zone. The planning permission allows for extensions in the rear of the house, the construction of a basement, and further amenities such as a new lift, garage, swimming pool, and extra terraces.
The new gross internal area (GIA) would be 7,000-7,250 sq ft; with a potential sale value of £2500-£3000/sq ft depending on the interior specifications. Our estimate of sale is over £20 m, with a return on investment ratio above 50%.
Basic Financial Analysis
Site Purchase Price: £ 9.5 mProject Cost*: £ 4 mEstimated Sale Price: £ 21 mReturn on Investment: %55
*including construction, services, legal fees
street view of
existing property; drawings of
proposed changes
INVEST IN LONDON
kreado services
17
large scale case study: kingsway
This prestigious development project is centrally located op-posite to the London School of Economics. Representing a rather large scale development opportunity in London, the building now features 13000 m2 of mainly office accommo-dation. High-spec residential units are located at roof level and reputable restaurants are at ground and basement levels.
The developer currently rents all floor area for a yearly in-come of £8M. This generates a very successful 13% yield as the overall development costs were £60 m including prop-erty purchase, construction and services.
This particular case is a good example of how to develop an existing building in central London by retaining the façade, rather than finding empty sites away from Central London.
collaboration profile
18
sidell gibson architects
kreado and Sidell Gibson Architects collaborate on projects that demand high levels of resources and coordination. This relationship allows an expanded team of professionals to respond to our client’s requirements.
Sidell Gibson Architects has been practicing in the UK for the last 35 years, holding many prestigious awards for its suc-cessful projects, many of which are located in central Lon-don. Mainly specialized in office and residential-use, SGA is capable of delivering complex mixed-use schemes such as the recently completed, award-winning, One New Change project located adjacent to London’s cherished St. Paul Cathedral.
Bartholomew Lane, London
One New Change, London
INVEST IN LONDON
Holford Mews, Cruikshank Street
London, WC1X 9HWUnited Kingdom
+44 (0) 203 602 3181
