Why Invest in Prime Central London
Why Invest in Prime Central London Globalised housing market in central London has created a chasm in property performance CAPITALS HOUSING OVERSUPPLY AND DEMAND Source: The Financial Times Page 01 BEAUCHAMP Capital October 2012 BCC London Property Fund I Confidential This document is compiled from sources believed to be accurate, but accuracy can not be guaranteed. The presentation is for information purposes only and is not a solicitation to invest in our fund. Any unauthorized reproduction or distribution of this document is strictly prohibited. Why invest in prime central London? UK Interest Rates too low for London Quantative Easing Safe Haven HNWs’ Asset Allocation FOREX Rates Prime Central London property: Liquidity, Transparency, Contractual and political stability Decline in number of ‘sellers’ Global Property ‘Super Brands’ Deregulated market Rental growth Restricted geographic area Historical indicators signaling a BUY Historic performance Page 02 BEAUCHAMP Capital October 2012 BCC London Property Fund I Confidential This document is compiled from sources believed to be accurate, but accuracy can not be guaranteed. The presentation is for information purposes only and is not a solicitation to invest in our fund. Any unauthorized reproduction or distribution of this document is strictly prohibited. Factors that make London an attractive place to live and invest WHAT ATTRACTS HNW INDIVIDUALS TO INVEST IN A CITY HOW DO HNW INDIVIDUALS RATE LONDON (1 BEING MOST INFLUENTIAL) Quality of Life 4 Freedom of Speech/Press 3 Vibrant Art Scene Excellent Transport Network 2 Excellent Healthcare Services 1 Easy Access to other Cities International Diverse Residents Economic Activity Political Influence Knowledge & Influence 0 Excellent Education System Presence of other HNWI Availability of Luxury Housing Social stability Economic Openness Political Power Personal Security and Safety 0 10% 20% 30% 40% 50% 60% 70% ALL HNW London Paris Washington DC Singapore Geneva Beijing New York Boston Hong Kong Shanghai Source: Knight Frank Wealth Report 2012 Page 03 BEAUCHAMP Capital October 2012 BCC London Property Fund I Confidential This document is compiled from sources believed to be accurate, but accuracy can not be guaranteed. The presentation is for information purposes only and is not a solicitation to invest in our fund. Any unauthorized reproduction or distribution of this document is strictly prohibited. A global demand for prime central London property Split of overseas buyers by value in PCL 2007-2011 Nationality of Residents in PCL 47% UK 47% UK 38% NON-EU 38% NON-EU 15% EU 15% EU Nationality of residents in Uk 25% WESTERN EUROPE AND NORDIC 25% WESTERN COUNTRIES EUROPE AND 26%NORDIC EASTERN COUNTRIES EUROPE AND THE 26%CIS EASTERN EUROPE AND THE CIS Source: Savills Page 04 21% MIDDLE EAST AND NORTH21% AFRICA MIDDLE EAST AND NORTH 3% AFRICA AFRICA 3% AFRICA 88% UK 88% UK 10% SOUTH ASIA SUB-CONTINENT 10% SOUTH ASIA SUB-CONTINENT 5% CHINA 5% CHINA 4% AFRICA 4% AFRICA 02% PACIFIC ASIA & AUSTRALIA 02% PACIFIC ASIA & AUSTRALIA 8% NORTH AMERICA 8% NORTH AMERICA 8% CHINA 8% CHINA BEAUCHAMP Capital October 2012 BCC London Property Fund I Confidential This document is compiled from sources believed to be accurate, but accuracy can not be guaranteed. The presentation is for information purposes only and is not a solicitation to invest in our fund. Any unauthorized reproduction or distribution of this document is strictly prohibited. How does prime central London compare with the world’s major cities? CHANGE IN THE VALUE OF PRIME RESIDENTIAL PROPERTY (to 2012) FIVE YEAR CHANGE ANNUAL CHANGE 120% 20% 14% 15% 96% 12% 10% 10% 8% 77% 0% -10% -3% Paris 59% -5% -3% -18% Mumbai 3% 64% 60% 60% 5% 4% 5% 69% Monaco 80% Shanghai 100% -6% -5% 40% 29% 32% 29% 21% 20% 32% 29% -10% 24% KL Jakarta Beijing S'pore HK NY St P'burg Moscow London KL Jakarta -20% Mumbai Beijing S'pore HK NY Paris Monaco St P'burg Moscow London 0% Shanghai -15% Annual change Five-year change Source: Knight Frank Wealth Report 2012 Page 05 BEAUCHAMP Capital October 2012 BCC London Property Fund I Confidential This document is compiled from sources believed to be accurate, but accuracy can not be guaranteed. The presentation is for information purposes only and is not a solicitation to invest in our fund. Any unauthorized reproduction or distribution of this document is strictly prohibited. House prices in prime London boroughs have historically outperformed the major indices House prices vs.HOUSE ftse all-share index PRICES VS. FTSE ALL-SHARE INDEX 70.00% HOUSE PRICE bank VS. DEUTSCHEBANK COMMODI house price vs. deutche commodity index 90.00% QE/€ 1. Nov 2008 – QE 1 ordered by US Federal Reserve 50.00% 70.00% 3. 2010 B of E Asset purchase programme increases 3 times to the end of the year at £200bn 30.00% 4. Nov 2010, Federal Reserve ordered QE2 10.00% 2007 2008 2009 2009 2010 2011 -10.00% 2012 5. Oct 2011 B of E increases asset purchases from £75bn to 275bn 50.00% % change from base value % change from base value 2. Mar 2009 – B of E announces £75bn of QE 30.00% 10.00% 2007 2008 2009 2009 2010 2011 2012 -10.00% 6. 2009-2012 Europeans seek safe havens for their money -30.00% -30.00% -50.00% -50.00% House Price Index report - London Region House Price Index report - London Region House Price Index report - City of Westminster House Price Index report - City of Westminster House Price Index report - Royal Borough of Kensington And Chelsea House Price Index report - Royal Borough of Kensington And Chelsea FTSE All-Share Deutche Bank Commodity Index Source: Land Registry Office & Bloomburg Page 06 BEAUCHAMP Capital October 2012 BCC London Property Fund I Confidential This document is compiled from sources believed to be accurate, but accuracy can not be guaranteed. The presentation is for information purposes only and is not a solicitation to invest in our fund. Any unauthorized reproduction or distribution of this document is strictly prohibited. How does prime central London compare with the world’s major cities? AVERAGE PRICE (£) PER SQUARE FOOT FOR PRIME RESIDENTIAL PROPERTY Q4 2011 AVERAGE £ PER SQ FT FOR PRIME RESIDENTIAL PROPERTY Q4 2011 4,000 £ per sq ft 3,500 3,000 2,500 2,000 1,500 1,000 Meribel Val d Isere Sydney Zurich Sardinia NY (Manhattan) *House ** Apartments Moscow Singapore Cannes Paris Hong Kong** Geneva St Tropez Gstaad St Moritz Courchevel Hong Kong* London Cap Ferrat 0 Monaco 500 Source: Knight Frank Wealth Report 2012 Page 07 BEAUCHAMP Capital October 2012 BCC London Property Fund I Confidential This document is compiled from sources believed to be accurate, but accuracy can not be guaranteed. The presentation is for information purposes only and is not a solicitation to invest in our fund. Any unauthorized reproduction or distribution of this document is strictly prohibited. The future... WHERE DO AGENTS THINK THE MARKET IS GOING? 9.0% 8.0% WHERE DO AGENTS THINK THE MARKET IS GOING? Savills Knight Frank Cluttons Jones Lang LaSalle ACTUAL 12-MONTH % CHANGE IN PRIME LONDON PROPERTY 16.0% 12-month % change 14.0% 12.0% 10.0% Annual year on year change 7.0% 6.0% PCL already outperformed Estate Agents forecasts 5.0% 4.0% 3.0% 8.0% 6.0% 2.0% 4.0% 2.0% 1.0% 0.0% 0.0% Page 08 2012 2013 BEAUCHAMP Capital October 2012 BCC London Property Fund I Confidential 2014 2015 2016 This document is compiled from sources believed to be accurate, but accuracy can not be guaranteed. The presentation is for information purposes only and is not a solicitation to invest in our fund. Any unauthorized reproduction or distribution of this document is strictly prohibited. Disclaimer The following notes should be read in conjunction with the attached document Past performance is not necessarily a guide to future performance. The value of investments, income and capital can fall as well as rise and is not guaranteed. You may not get back the amount originally invested. Levels and the basis of taxation may change from time to time. The views expressed do not constitute investment or any other advice and are subject to change. Information and opinions are derived from sources believed to be reliable at the original date of publication but the presenter of this document makes no representation as to their accuracy or completeness. This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any funds and has not been prepared in connection with any such offer. This material is for distribution to Professional Clients (as defined by The Financial Services Authority Rules). Page 09 BEAUCHAMP Capital October 2012 BCC London Property Fund I Confidential This document is compiled from sources believed to be accurate, but accuracy can not be guaranteed. The presentation is for information purposes only and is not a solicitation to invest in our fund. Any unauthorized reproduction or distribution of this document is strictly prohibited.
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