Saturday, January 1, 2011
Friday, February 5, 2010
Investment Triples in U.K. Property Mutual Funds, IMA Says
British mutual fund investors more than tripled the amount of money poured into real estate in the fourth quarter as record-low rates for savings accounts boosted the appeal of higher-yielding investments.
Savers put a net 1.39 billion pounds ($2.2 billion) in property mutual funds, up from 422 million pounds in the preceding three months, according to figures compiled by the Investment Management Association, a London-based industry group.
A 44 percent slide in U.K. property values in the two years ended in July revived investor appetite for income-producing investments such as real state that also offer some protection from inflation. The 1.81 billion pounds in total inflows to property funds in the second half followed more than a year of net withdrawals.
Money managers such as Aviva Investors, the unit of Aviva Plc that manages Britain’s largest real estate mutual fund, resumed purchases after being forced to sell buildings to meet fund redemptions. That helped double the value of U.K. commercial property deals in the fourth quarter from a year earlier to 9.7 billion pounds, according to Property Data.
Returns from property mutual funds that own buildings rose to 8.1 percent in the final three months, Investment Property Databank calculates, limiting the losses for the entire year to 3.5 percent.
Owners of commercial property got an annual return of 7 percent from rental income, December figures from IPD showed. That exceeds the 0.76 percent average return currently available from savings accounts, according to estimates on the personal finance Web site Moneyfacts.
Property funds jumped to No. 4 out of 34 in the rankings of the most popular vehicles for individual investors in 2009, the IMA’s report today showed. They were in second-to-last place in 2008, when net withdrawals, including sales to professional investors, totaled 1.16 billion pounds.
The 1.53 billion pounds invested in property vehicles last year represented 5.2 percent of the total money placed in U.K. mutual funds.
UK Capital Investments News, Feburary 2010
Savers put a net 1.39 billion pounds ($2.2 billion) in property mutual funds, up from 422 million pounds in the preceding three months, according to figures compiled by the Investment Management Association, a London-based industry group.
A 44 percent slide in U.K. property values in the two years ended in July revived investor appetite for income-producing investments such as real state that also offer some protection from inflation. The 1.81 billion pounds in total inflows to property funds in the second half followed more than a year of net withdrawals.
Money managers such as Aviva Investors, the unit of Aviva Plc that manages Britain’s largest real estate mutual fund, resumed purchases after being forced to sell buildings to meet fund redemptions. That helped double the value of U.K. commercial property deals in the fourth quarter from a year earlier to 9.7 billion pounds, according to Property Data.
Returns from property mutual funds that own buildings rose to 8.1 percent in the final three months, Investment Property Databank calculates, limiting the losses for the entire year to 3.5 percent.
Owners of commercial property got an annual return of 7 percent from rental income, December figures from IPD showed. That exceeds the 0.76 percent average return currently available from savings accounts, according to estimates on the personal finance Web site Moneyfacts.
Property funds jumped to No. 4 out of 34 in the rankings of the most popular vehicles for individual investors in 2009, the IMA’s report today showed. They were in second-to-last place in 2008, when net withdrawals, including sales to professional investors, totaled 1.16 billion pounds.
The 1.53 billion pounds invested in property vehicles last year represented 5.2 percent of the total money placed in U.K. mutual funds.
UK Capital Investments News, Feburary 2010
Monday, January 18, 2010
Capital Investments 'will help lead UK out recession'
EDINBURGH is one of the five cities which will lead the UK out of the recession, a study revealed today.
The report by the Centre for Cities said despite the collapse of HBOS and RBS, Edinburgh had the right ingredients to succeed, including a strong private sector and educated workforce.The Capital was second best in the UK for degree-level qualifications and third for knowledge intensive jobs.
Other top cities included Brighton, Milton Keynes, Reading and Cambridge.
Edinburgh Chamber of Commerce's deputy chief executive Graham Birse said sectors including IT, life sciences, retail and the creative industries were particularly strong.
He also pointed out that Tesco Finance, HSBC and Santander had all expanded their operations in the city recently.
He said: "What we need is investment for the city regions, such as Edinburgh, which are the drivers for new jobs and economic growth.
The study also revealed 77.1 per cent of the working age population in the Capital were employed in 2009, 12th highest in the UK.
UK Capital Investments News, January 2010
European commercial property investment on a rebound; UK capital growth in December 2009 highest in 16 years
European commercial property investment is on a rebound and rose 40% in the fourth quarter of 2009, to the highest level since the collapse of Lehman Brothers in 2008. Last Friday, London-based IPD, a global provider of property market indices, reported that the final month of last year delivered the largest monthly capital growth in IPD’s 23-year history, at 3.0%, according to December’s IPD UK Monthly Index. The figure beats the 2.9% delivered exactly 16 years earlier in December 1993, at the end of the last major property recession.
On the European property market, CB Richard Ellis, the commercial property consultancy, reports that more than €25.7bn of property deals were agreed in the fourth quarter of 2009, an increase of 42% on the previous quarter and double the levels traded in the first two quarters of the year.
In the first three quarters of 2009, there was about €41bn of investment activity in the European commercial real estate market. There has been a steady increase in activity each quarter since the low of €12bn in Q1 2009. The full-year total of €70bn, compares with €121bn in 2008.
Michael Haddock, director, EMEA (Europe, Middle East, Africa) Capital Markets Research, CB Richard Ellis commented: “The recent upturn in investment activity suggests that many investors believe the European market is approaching the bottom of the cycle; and in some cases, it may well be past that point. Whilst investment turnover has started to pick-up from lows of around €12 billion in both Q1 and Q2 this year, concerns remain about slow economic recovery and its lagging impact on the occupier market.”
UK Capital Investments News, January 2010
On the European property market, CB Richard Ellis, the commercial property consultancy, reports that more than €25.7bn of property deals were agreed in the fourth quarter of 2009, an increase of 42% on the previous quarter and double the levels traded in the first two quarters of the year.
In the first three quarters of 2009, there was about €41bn of investment activity in the European commercial real estate market. There has been a steady increase in activity each quarter since the low of €12bn in Q1 2009. The full-year total of €70bn, compares with €121bn in 2008.
Michael Haddock, director, EMEA (Europe, Middle East, Africa) Capital Markets Research, CB Richard Ellis commented: “The recent upturn in investment activity suggests that many investors believe the European market is approaching the bottom of the cycle; and in some cases, it may well be past that point. Whilst investment turnover has started to pick-up from lows of around €12 billion in both Q1 and Q2 this year, concerns remain about slow economic recovery and its lagging impact on the occupier market.”
UK Capital Investments News, January 2010
Tuesday, January 5, 2010
ICICI Bank partners UK Trade and Investment to offer new services
Leading private sector lender, ICICI Bank has tied up with UK Trade and Investment to help Indian firms explore business opportunities in the British market.
The tie-up will provide training events and investment assistance to Indian firms looking at business opportunities in UK, a press release said.
"Through this initiative, we envision further awareness to the Indian businesses by means of knowledge and counselling sessions," ICICI Bank Managing Director and CEO Chanda Kochhar said.
UK Trade and Investment is a government organisation that helps UK-based companies succeed in international markets.
ICICI Bank is the largest private sector bank in the country, with consolidated total assets of about USD 102 billion as on September 30, 2009.Leading private sector lender, ICICI Bank has tied up with UK Trade and Investment to help Indian firms explore business opportunities in the British market.
The tie-up will provide training events and investment assistance to Indian firms looking at business opportunities in UK, a press release said.
"Through this initiative, we envision further awareness to the Indian businesses by means of knowledge and counselling sessions," ICICI Bank Managing Director and CEO Chanda Kochhar said.
UK Trade and Investment is a government organisation that helps UK-based companies succeed in international markets.
ICICI Bank is the largest private sector bank in the country, with consolidated total assets of about USD 102 billion as on September 30, 2009.
UK Capital Investments News, Jan 2010
The tie-up will provide training events and investment assistance to Indian firms looking at business opportunities in UK, a press release said.
"Through this initiative, we envision further awareness to the Indian businesses by means of knowledge and counselling sessions," ICICI Bank Managing Director and CEO Chanda Kochhar said.
UK Trade and Investment is a government organisation that helps UK-based companies succeed in international markets.
ICICI Bank is the largest private sector bank in the country, with consolidated total assets of about USD 102 billion as on September 30, 2009.Leading private sector lender, ICICI Bank has tied up with UK Trade and Investment to help Indian firms explore business opportunities in the British market.
The tie-up will provide training events and investment assistance to Indian firms looking at business opportunities in UK, a press release said.
"Through this initiative, we envision further awareness to the Indian businesses by means of knowledge and counselling sessions," ICICI Bank Managing Director and CEO Chanda Kochhar said.
UK Trade and Investment is a government organisation that helps UK-based companies succeed in international markets.
ICICI Bank is the largest private sector bank in the country, with consolidated total assets of about USD 102 billion as on September 30, 2009.
UK Capital Investments News, Jan 2010
Friday, December 18, 2009
Olympics boost India capital investment prospects in UK
Indian companies are being strongly advised to invest in the UK ahead of the 2012 Olympic Games.
The British Deputy High Commissioner for South India, Mike Nithavrianakis said contract deals worth £6 billion as well as the 75,000 new business opportunities generated by the London Games present Indian companies with ample opportunity to solidify trade links between the two countries - as well as to use the UK as a springboard into European and Chinese markets.
Addressing the Indo-UK seminar on business partnerships, Nithavrianakis said potential trade would focus on high-tech, high growth and innovative industries.
Mr Nithavrianakis said the UKTI would play a key role in bringing together companies from the UK and the south Indian state of Kerala prior to the Games.
Despite the UK's laboured emergence from the recession, it is still a key trading post for India with bilateral trade between the two countries reaching £12.6 billion in 2008.
Business Secretary Lord Mandelson underlined the importance of the relationship ahead of his visit to India this week: "The UK and India are natural business partners. There are huge opportunities for UK firms in India and Indian firms are strong investors in the UK."
Dr Thomas Issac, State Finance Minister for the government of Kerala, said that the response to the governments decision to set up a venture capital fund for promoting investments was enthusiastic adding that information technology, biotechnology and tourism would be key areas of investment.
Dr Isaac added that investment in infrastructure has been planned in order to accommodate a surge in trade relations between the UK and Kerala.
UK Capital Investments News, December 2009
The British Deputy High Commissioner for South India, Mike Nithavrianakis said contract deals worth £6 billion as well as the 75,000 new business opportunities generated by the London Games present Indian companies with ample opportunity to solidify trade links between the two countries - as well as to use the UK as a springboard into European and Chinese markets.
Addressing the Indo-UK seminar on business partnerships, Nithavrianakis said potential trade would focus on high-tech, high growth and innovative industries.
Mr Nithavrianakis said the UKTI would play a key role in bringing together companies from the UK and the south Indian state of Kerala prior to the Games.
Despite the UK's laboured emergence from the recession, it is still a key trading post for India with bilateral trade between the two countries reaching £12.6 billion in 2008.
Business Secretary Lord Mandelson underlined the importance of the relationship ahead of his visit to India this week: "The UK and India are natural business partners. There are huge opportunities for UK firms in India and Indian firms are strong investors in the UK."
Dr Thomas Issac, State Finance Minister for the government of Kerala, said that the response to the governments decision to set up a venture capital fund for promoting investments was enthusiastic adding that information technology, biotechnology and tourism would be key areas of investment.
Dr Isaac added that investment in infrastructure has been planned in order to accommodate a surge in trade relations between the UK and Kerala.
UK Capital Investments News, December 2009
Mobile shells more UK capital investments in India
Mobile putes huge UK capital investments in India and said it would rather improve upon on its competitiveness in the market.
"We have already made over a billion dollar investment in India. We do not have to make more uk capital investments. We have to run the business more efficiently to be more competitive in the market".
He said, "We do not need to build more factories or plants because those are already in place. Now we need to expand operations as foundation is already there."
Mehta clarified that the company has no plans to enter the refining business in India.
About the state of its LNG business in India after availability of Reliance Industries' KG-D6 basin gas, he said, "Reliance gas from KG-D6 basin has not affected our business as market is large enough to absorb both LNG as well as domestic gas. Reliance is still buying LNG from us."
About retail business expansion, Mehta said, "The government has to finally decide, how they want to arrange the pricing mechanism for petroleum (products), before private sector retailing becomes viable business."
UK Capital Investments News, December 2009
"We have already made over a billion dollar investment in India. We do not have to make more uk capital investments. We have to run the business more efficiently to be more competitive in the market".
He said, "We do not need to build more factories or plants because those are already in place. Now we need to expand operations as foundation is already there."
Mehta clarified that the company has no plans to enter the refining business in India.
About the state of its LNG business in India after availability of Reliance Industries' KG-D6 basin gas, he said, "Reliance gas from KG-D6 basin has not affected our business as market is large enough to absorb both LNG as well as domestic gas. Reliance is still buying LNG from us."
About retail business expansion, Mehta said, "The government has to finally decide, how they want to arrange the pricing mechanism for petroleum (products), before private sector retailing becomes viable business."
UK Capital Investments News, December 2009
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