UK residential property

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UK residential property Nov 2009
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Contents
Long term trends The recession Recovery Our
approach
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Edinburgh
London
70 of the worlds oil
70 of the worlds bagpipes
The ethical, green, UK student fund
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The worlds largest festival
1,000 Castles
A bit about Scotland
500 golf courses
700 islands
Europes 3rd largest financial centre
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UK property
Nottingham
Newcastle
Manchester
Dundee
Edinburgh
Bristol
Glasgow
Liverpool
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Long term trends
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Long term trends ownership.

• Residential
• The rental market remains small
• The Gov. aims to encourage its growth

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Long term trends size and ownership.

Residential a very large
asset class, with low UK Institutional
participation
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Long term trends residential performance

• Above Residential consistently outperforms
  other asset classes
• Below Residential has been less volatile in
  a downturn

UK asset performance to December 2008
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Long term trends price growth.
Source Halifax and Government

• Residential London and UK move in the same way

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Long term trends price growth.
Source Halifax and Government

• Residential Long term stable growth and low
  volatility

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Recession
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Recession overall impact (peak to trough)
Gm Residential
-11
-15
All Residential Property
-40
Shares
Commercial Property
-45
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Recession city by city performance
Land Registry Gm Funds Diff.
 
Edinburgh -10 -6 4
Glasgow -13 -7 6
Stirling -11 -7 4
Dundee -11 -4 7
 
Newcastle -13 -8 5
Nottingham -14 -15 -1
Birmingham -14 -12 2
Bristol -19 -13 6
Liverpool -13 -12 1
Salford -15 -14 1
Manchester -15 -18 -3
 
Grand total -15 -11

• Gm has outperformed the market by 30

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Recession recent international price trends
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Recession recent price trends

• Prices have risen for 7 consecutive months

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Recession a positive impact on the student
rental market

• Large / growing student market
• 175,000 students turned away!
• Shortage of student housing

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Recovery 4 stages

• House prices have risen for the past 7 months
  Nationwide

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Headlines
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Our approach
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What we do

• One stop solution
• Source
• Renovate
• Furnish
• Let / manage

Property funds
Private Clients
We outperform the market by 30
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About Grant Management

• Worldwide client base
• 12 UK cities
• 500m / 1,850 prop. under man.
• Lloyds Banking Group own 20

ARLA members / code of practice
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Traditional over new build?

• Shortage of supply
• Better locations
• Higher yields

Gross Yields
7
4
2
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How we add value

• Buying well
• Price, location
• Investment model

• Renovations
• On time 8 weeks
• On budget - fixed price

• Management
• Safety/ compliance
• Occupancy 95

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Case Study adding value

• Before After Diff.
• Value 215k 250k 35K
• Rent pcm 788 1,400 612
• Yield 4.4 7.6 72

2 (MD) Summerhall Square, Newington,
Edinburgh, EH9 1QD Bought Mar 2009
Renovation Costs 32,475
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Our homes
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The student market

• Large university cities
• Secure income (Joint leases/guarantors)
• Universities recession proof

Around 75 of our properties are let to students
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Summary

• Residential is a good asset class
• Gm offers a great solution for private clients
  and funds
• Student Market is large and growing
• Great time to buy

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Our aims

• To help new clients to enter the market
• To build partnerships
• To partner fund managers and sovereign wealth
  funds

Castles
Banks
Funds
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Long term trends The recession Recovery Our
approach
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Golf
10 second tour of scotland
Castles
Monsters