Briefings in Real Estate Finance最新文献

A successful launch for a property development project has direct implications on the profitability of the development company. This paper examines the impact of news on the take-up rates in property development launches on the stock prices of publicly listed property development companies. The implications of a study on stock price reaction to news on property development launches are clear. The property company could view good market response as an opportune time for raising financing in terms of equity as well as bonds or for refinancing. More fundamentally, a favourable market response can be viewed as a market endorsement of the financing structure for property development companies where project financing is widely used. When good take-up rates are announced in the press, one expects the stock price of the development company to react positively. Empirical evidence from Singapore suggests that the cumulative average abnormal returns (CAARs) are flat on days subsequent to the announcement dates, but there exist significant movements some weeks after the condominium actual launch dates. When the launch date is used as the event date, the CAARs over the period following the launch date are positive for projects that sell well and negative for projects that do not. In addition, the cumulative returns correlate positively to the percentage of units sold over the launch period. Copyright © 2002 Henry Stewart Publications

This paper outlines how capitalisation of real estate has changed in the last 20 years, especially for development projects. Capital providers have also changed, and the type of provider generally indicates the level of acceptable risk tolerance for a transaction. The paper looks at the different structures used by developers and capital sources in structuring development transactions, which includes the advantages and disadvantages of each structure. Copyright © 2001 Henry Stewart Publications

Despite the recent downturn in the US economy, real estate has remained an extremely attractive investment class. Although the market has softened, property investors have, to date, been largely insulated from distress. Commercial real estate provides investors with cash flow; a hedge against price instability; low correlation to other asset classes; and low volatility of returns. While of these characteristics provide investors potential refuge, they need to be managed, particularly in difficult economic times. Credit risk, leverage risk, geographic market risk, and exit risk are all important elements. Although the US real estate industry, for once, has not been a cause of the recession, understanding and managing these risks is important for the commercial property market to escape the effects of the current downturn. These facts have placed stress on the property market and forced new roles on all participants in the capital structure of real estate investments. This paper will outline various dangers in the current real estate market as well as highlight tools that the industry can use that may mitigate these risks. The paper will also attempt to quantify today's property market dynamics in an effort to plot the current phase of the cycle. Copyright © 2002 Henry Stewart Publications.

Most property valuations ignore tax issues as instructed to do so by the valuation guidelines. This paper highlights the cash savings that are available in some properties from the tax relief generated from capital allowances, and how they affect the return on investment. As the driver for investment in the commercial property market in the UK is shifting from capital growth to income, the post-tax position becomes more important. This paper therefore makes a case for looking beyond the ‘Red Book’ valuation when re-examining loan to value ratios in a changing market. Copyright © 2004 Henry Stewart Publications

This paper is intended to give the reader an overview of the current funding possibilities for small residential property developers in the UK. The main focus will be on developers of new homes but most of the principles apply to those involved in the conversion and refurbishment business who are likely to rely upon broadly similar funding arrangements. It is accepted that some smaller developers are able to finance their schemes out of their own cash flow without the need for borrowings; however, even if they are in this fortunate position, many of them opt to borrow so that all of their cash resources are not tied up in land and work in progress. Their own spare funds are then available to take advantage of opportunities to acquire land, and to secure options and conditional contracts etc. The vast majority of developers borrow to ensure that they have projects in the pipeline and at various stages of maturity. Copyright © 2004 Henry Stewart Publications

Abstract This paper examines the main tax issues which need to be considered when setting up a property joint venture, whether for development or investment purposes. The paper starts with the initial questions that must be asked of all parties to the joint venture before a suitable structure can be identified. It then briefly considers some of the key tax issues that arise in joint ventures before looking at the main joint venture vehicles available. Finally, a short case study is used to consider how some of these issues may be considered and resolved in practice. Copyright © 2001 Henry Stewart Publications

The focus of public–private partnerships (PPPs) and private finance initiatives (PFIs) remains, as it has from their inception in 1992, firmly on the provision and maintenance of public sector property assets such as schools, hospitals, social housing and civil engineering projects including ‘Design, Build, Finance and Operate’ roads. Many of the techniques used in financing PPP and PFI transactions are common to real estate projects. It is likely therefore that the tax issues and consequent solutions developed for PPP and PFI transactions will have increasing relevance to the property investment industry, particularly as the principles of PFI become more common in the private sector. The purpose of this paper is to explore the different approaches to taxing PPP and PFI project vehicles and provide an update on the latest developments in their taxation. This is a topic which has been brought into focus by the high tax rate suffered by early PFI projects which are now reaching maturity and the consequent effect this has on shareholder returns. In response, the industry has, in partnership with the Inland Revenue, sought greater certainty over the tax treatment of PPP and PFI projects. Changes to key parts of PFI contracts and the way in which services are delivered can result in a much lower effective rate of tax for PPP and PFI projects. Copyright © 2004 Henry Stewart Publications

This paper looks at legal and practical issues which may arise for prospective lenders in relation to secured property loans concerning property in France. While the issues discussed are necessarily subjective, and appropriate legal advice should be taken in all cases, it is hoped that the paper will provide initial guidance in respect of transactions undertaken in France, relative to the typical expectations of a lender in respect of a similar UK deal. Copyright © 2004 Henry Stewart Publications

The slowdown in global economies, exacerbated by the 11 September attacks, together with the hesitancy, inconsistency and intransigence of both governments and lenders in dealing with non-performing loans (NPLs) has deepened the problems for Asia's already troubled economies. As the number of Asian NPLs has skyrocketed to an estimated US $2trn (an increase of 33 per cent in the last two years), the authors examine the reasons for the increase, discuss new exit strategies being tested in these markets and offer a prognosis for foreign investors in North Asian real estate. Copyright © 2002 Henry Stewart Publications.

This paper explores the trend of Irish investment in the UK commercial property market, which has been particularly prevalent in recent years. It discusses the quantum of Irish investment spend (private and institutional) in the UK commercial property market over recent years, outlining the reasons why Irish investors typically choose to invest in the UK property market as opposed to their domestic market. Sectors and locations which are particularly appealing to the Irish investors in the UK are explored and examples of some recent deals are outlined. The paper goes on to discuss the rationale for funding Irish investment purchases in the UK, outlining in particular the factors which an Irish lending institution will typically take into account when lending on UK commercial property purchases. Copyright © 2004 Henry Stewart Publications