Globalization, integration and commercial property. Evidence from the UK

1999 ◽  
Vol 17 (1) ◽  
pp. 8-26 ◽  
Author(s):  
Patrick McAllister
Keyword(s):  
Asset Allocation ◽  
Investment Strategies ◽  
Information Costs ◽  
Property Market ◽  
Diversification Strategy ◽  
Institutional Investment ◽  
Commercial Property ◽  
Important Barrier ◽  
The Uk ◽  
Allocation Decisions

This paper analyses trends in direct international property investment by British investing institutions in the 1980s and 1990s. Although it is well established that there is home country bias in all investment sectors, evidence is presented which suggests that it is more pronounced in the direct property sector. The main focus is on barriers to international property investment and, therefore, potential sources of segmentation in the property sector. The research addresses a number of issues relating to levels of international property investment, the linkages between the nature of the core business and investment strategies and the relative importance of high diversification costs. This is carried out by an analysis of the most recent data on British institutional investment trends and by a survey questionnaire of British property professionals involved in asset allocation decisions for the investing institutions. The results indicate that: information costs are the most important barrier to international direct property investment, the high cost of executing a global diversification strategy inhibits international property investment, and institutions who have clients and see business opportunities in international centres are more likely to be interested in international property investment opportunities. The data on asset allocation trends support the view that the property market is significantly less integrated than the other securities markets.

Measuring the financial performance of green buildings in the UK commercial property market

2011 ◽  
Vol 16 (2) ◽  
pp. 163-185 ◽  
Author(s):  
Franz Fuerst ◽  
Patrick McAllister ◽  
Jorn van de Wetering ◽  
Peter Wyatt
Keyword(s):  
Financial Performance ◽  
Green Buildings ◽  
Property Market ◽  
Commercial Property ◽  
The Uk

scholarly journals How long is UK property cycle?

2017 ◽  
Vol 35 (4) ◽  
pp. 410-426 ◽  
Author(s):  
Arvydas Jadevicius ◽  
Simon Hugh Huston
Keyword(s):  
Investment Decision ◽  
Future Market ◽  
Cycle Duration ◽  
Property Market ◽  
Content Type ◽  
Commercial Property ◽  
Novel Approach ◽  
Investment Decision Making ◽  
Step Algorithm ◽  
The Uk

Purpose The purpose of this paper is to assess the duration of the UK commercial property cycles, their volatility and persistence to gauge future market direction. Design/methodology/approach The study employs a novel approach to dissect cycles in a form of a three-step algorithm. First, the Hodrick-Prescott de-trends the selected variables. Second, volatility (measured by the variance) screens periods of atypical fluctuations in the series. Finally, the series is regressed against its past values to assess the level of persistence. The sequential steps screen the length of the cycles in UK commercial property market to facilitate interpretation. Findings The estimates suggest that UK commercial property market follows an eight-year cycle. Combined modelling results indicate that the current market trend is likely to change over the coming year. The modelling suggests increasing probability of a market correction in late 2016/early 2017. Practical implications This updated appreciation of the UK commercial property cycle duration allows for better market timing and investment decision making. Originality/value The paper adds additional evidence on the contested issue of UK commercial property cycle duration.

The problematic differentiation between property bonds and leases in healthcare provision

2015 ◽  
Vol 33 (1) ◽  
pp. 83-94 ◽  
Author(s):  
Andrew Ellison ◽  
Graham Squires ◽  
Patrick Dempsey
Keyword(s):  
Government Regulation ◽  
Property Market ◽  
Structured Interviews ◽  
Healthcare Provision ◽  
Institutional Investment ◽  
Content Type ◽  
Original Insight ◽  
The Uk ◽  
New Instruments ◽  
Insight Into

Purpose – There are some 487,000 places in long-stay residential care and nursing homes in the UK representing an industry worth some £15.2 billion per annum. Creating leases with guaranteed rental uplifts, a property bond in all but name, now attracts significant investment into healthcare. This is argued to be unsustainable, as evidenced by the collapse of Southern Cross Healthcare. The purpose of this paper is to provide insight into institutional investment for sustainable healthcare provision. Design/methodology/approach – It is carried out via a range of unstructured and semi-structured interviews with a purposive sample of a small elite of professionals involved at the summit of this investment market and analysis of secondary literature concerning the wider international property market regarding the way in which advisers and investors view the security and value of these new instruments. Findings – It is found that the differentiation between rental growth and indexed rental uplifts reveal a misunderstanding of the nature of the investment vehicles currently being marketed. Practical implications – The implication of the research, is that much modern private healthcare provision is financially unsustainable, as has begun to be recognised in recent government regulation and guidance. Originality/value – This research provides new and original insight into institutional investment for sustainable healthcare provision

scholarly journals ESG AND RESPONSIBLE INSTITUTIONAL INVESTMENT

2021 ◽  
Vol 229 (3) ◽  
pp. 98-120
Author(s):  
MARINA V. CHERNYSHOVA ◽  
Keyword(s):  
Climate Change ◽  
Financial Market ◽  
Asset Allocation ◽  
Human Life ◽  
Investment Banks ◽  
Institutional Investment ◽  
Green Investment ◽  
Combat Climate Change ◽  
Asset Managers ◽  
Allocation Decisions

The growing interest in the sustainability of companies has led to green investment gaining popularity among investors as it aims to combat climate change and its impact on the planet, and therefore on human life and the environment. These changes also directly affect companies, in connection with which they are reconsidering their behavior in order to meet the new requirements of the financial market. Investors are changing their asset allocation given that more resilient issuing companies are better equipped to cope with tough times and therefore offer stable returns. In line with this emerging trend, global investment banks and asset managers have increased the supply of green funds in recent years, providing investors with many options to validate environmental, social and corporate governance (ESG) aspects when making portfolio asset allocation decisions.

An analysis of valuation variation in the UK commercial property market

1996 ◽  
Vol 14 (5) ◽  
pp. 34-47 ◽  
Author(s):  
Alastair Adair ◽  
Norman Hutchison ◽  
Bryan MacGregor ◽  
Stanley McGreal ◽  
Nanda Nanthakumaran
Keyword(s):  
Property Market ◽  
Commercial Property ◽  
The Uk

scholarly journals Commercial leases in the UK regions: business as usual?

2016 ◽  
Vol 18 (4) ◽  
pp. 227-253
Author(s):  
Danielle McCluskey ◽  
Lay Cheng Lim ◽  
Michael McCord ◽  
Peadar Thomas Davis
Keyword(s):  
Past Research ◽  
Negotiation Process ◽  
Specific Reference ◽  
Survey Analysis ◽  
Property Market ◽  
Content Type ◽  
Commercial Property ◽  
Depth Analysis ◽  
The Uk ◽  
Tenant Relationship

Purpose The purpose of this paper is to analyse the changing nature of commercial leases with specific reference to the landlord and tenant relationship, lease lengths and incentivisation in the post-recessionary UK property market. Design/methodology/approach The research applies data analysis utilising the Estates Gazette Interactive database coupled with survey analysis conducted across three UK cities to investigate and compare the changing nature of the commercial property leasing market and the landlord and tenant relationship. Findings The empirical analysis highlights that recessionary conditions prevalent in the market from the 2007 global crisis has caused a reassessment of lease structures, leading to shorter lease terms and increased use of incentives, as tenants have been empowered to negotiate more flexible leases due to their stronger market position. Originality/value This paper builds upon previous research conducted back in 2005, investigating commercial leases in the market up-cycle. The recent volatility in the commercial property sector requires fresh insights and in-depth analysis of lease patterns, length and covenant strength, which is fundamental for investor decision-making. In addition, past research has tended to consider solely landlord or occupier perspectives, whereas this research offers new insight into the landlord–tenant lease negotiation process.

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