Grosvenor Estates start selling off prime London Properties

Graham_Devon

As they have been "concerned about the high level of residential prices (in London) for some time and wanted to harvest some returns"

They also state that there is a risk that a bubble is developing.

“We doubled our revenue profit, chiefly through timely disposals in London which took advantage of favourable conditions,” said Mark Preston, the chief executive officer of the Grosvenor Group. “We are always buying and selling in London as a matter of course but we have been concerned about the high level of residential prices for some time and wanted to harvest some returns.”

Finance director, Nicholas Scarles, said: “Higher real estate lending margins, driven by a combination of increased bank capital requirements and better risk-based pricing by lenders, translate into increased potential profitability for commercial real estate lenders. The result is increasing levels of new debt and rising maximum loan to value ratios. There is a risk that a bubble is developing.”

“The group is well placed to tolerate volatility,” he said, and cited the Crimean crisis, Scottish independence and Britain’s potential exit of the European Union as “potential peaks and troughs. “For London to retain its safe haven [investment] status [for overseas buyers] a lot of things have to continue to go right here and wrong elsewhere, such as economic growth, favourable tax and immigration policies. We wouldn’t bet against london but we are keen to diversify and manage our risk,” he added.

So, the London based investors now seem to be bailing out for fear of prices rising too high....

http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/10795978/Grosvenor-Estates-sale-marks-top-of-London-property-market.html

vivatifosi

What's the betting they still keep the freeholds?

CLAPTON

good news for first time buyers in Westminster and Kensington

vivatifosi

CLAPTON wrote: »

good news for first time buyers in Westminster and Kensington

Maybe it's the real reason Harry and Cressida split. They can afford one each now.

purch

Graham_Devon wrote: »

So, the London based investors now seem to be bailing out for fear of prices rising too high....

Seeing as the Grosvenor family acquired half their property in Duels on Hampstead Heath, and the rest for an average price of about 6 guineas I don't really think they can be accused of being "London based investors" nor of liquidating parts of their portfolio out of fear of losing money.

Seems quite a sensible policy to me, and something that I have done myself in the last 6 months.

mayonnaise

Graham_Devon wrote: »

So, the London based investors now seem to be bailing out for fear of prices rising too high....

Is that so? The article only mentions Grosvenor Estates.
Do you mean many other London based investors are bailing out also? Is this a trend?
I really couldn't draw any conclusions on this by reading the article, but you probably have some insider knowledge the rest of us is not aware of.

Graham_Devon

mayonnaise wrote: »

Is that so? The article only mentions Grosvenor Estates.

Who, I believe, are London based investors.

chucky

mayonnaise wrote: »

Is that so? The article only mentions Grosvenor Estates.
Do you mean many other London based investors are bailing out also? Is this a trend?
I really couldn't draw any conclusions on this by reading the article, but you probably have some insider knowledge the rest of us is not aware of.

Ignore the troll, it's typical scaremongering.

wotsthat

Someone decides to take some profit - obviously a bubble.

mayonnaise

Graham_Devon wrote: »

Who, I believe, are London based investors.

That could well be, but when you mentioned...

Graham_Devon wrote: »

So, the London based investors now seem to be bailing out for fear of prices rising too high....

...I assumed there would be more. Oh well, never mind.

mayonnaise

wotsthat wrote: »

Someone decides to take some profit....

...to invest it elsewhere in London.

“We have redirected [funds] to another segment of the London market,” Mr Preston said"

Definitely a sign of London based investors bailing out.