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.