PropTech News: 22 - 28th May, 2017
The week's PropTech news
22nd May - 28th May, 2017
International investors showing interest in Madrid’s commercial property market
Europe is leading the markets when it comes to commercial properties. According to the latest RICS Commercial Property Monitor, Madrid, Budapest, Dublin, Munich, Berlin and Lisbon are sighted with most growth in occupier demand.
Dublin and Amsterdam are receiving enquiries from various businesses in the UK to relocate due to Brexit. Businesses are looking to move some parts of their businesses away from the UK.
Sydney and Auckland is currently feeling a positive tenant demand on the market. Russia and Brazil has started to recover from depression and presently picking up on the occupier demand.
Proptech: The businesses transforming the housing market
Most of us will have to deal with the property sector at one point in our lives. It is a huge sector, and only in the UK it is considered to be a multi-billion-pound industry.
The housing market at its present state is not beneficial to anyone. Professor Andrew Baum of the Saïd Business School at the University of Oxford states that letting process is not efficient as the agents are only looking to make a quick sale. He believes tapping into tech platforms will make the journey smoother for all the parties.
Online services in most of the areas in business are booming - people are getting more comfortable with the digital world. Online estate agent is a model that occupies 5% of the market share, however, it is predicted to go up by 15-20% by 2020.
Proptech is likely to be an answer to high agency fees. Tenants are struggling with various fees to pay when renting a property. Moving towards an online model can deduce the charges remarkably, which is good news to the general public.
Qatar becomes one of the New York city's biggest commercial owners
Qatar is a big player in the property game despite of the size of its country. Being the biggest export for liquid natural gas, Qatar is reported to be the wealthiest country per capita income. Their investment fund of $250 billion in asset is now heading towards New York’s property circles.
Buying estates in New York city is a safe bet, according to Michael Maduell, president of the Sovereign Wealth Fund Institute. He also states the following: "wealth funds are sometimes willing to pay more for assets than real estate fund managers. They're buying assets for the long term—like 20 to 30 years."
The Qatar investment Authority now owns 9.9% stake in Empire State Realty Trust REIT, whom controls the Empire State Building amongst other properties. The QIA had 10.69 million square feet of space under their name in March 2017, which is 145% growth compared to the previous year.
The QIA fund has already been involved in property deals worth of $3.8 billion in New York City and $6.5 billion in acquisitions deals in the U.S. overall. QIA is also planning to invest $35 billion into U.S. through 2020.
Chinese major insurance company bought 48 commercial property items in USA
China Life Insurance Group, which is one of the largest companies in the country has bought a big share of properties in the USA. According to Dow Jones, China Life Insurance Group is now the proud owner of 95% stake in 48 properties. Real estates included industrial properties that are currently being leased by Catebillar & FedEX.
An extensive share of 5.5 million square feet was purchased from Elmtree funds LLC real estate portfolio. Market price is estimated to be as much as $950 million. A remaining 5% share of the property is still under ownership of Elmtree Funds LLC.
New property lender launches in Ireland
Timbercreek asset management has made €200 million available to support investment projects in Ireland. Timbercreek is a leading player in Canada where it originates from, but also operates in the UK and U.S. markets.
The Irish team will be led by Paul Roddy. Their main focus will be on loan sizes between €1 million and €50 million. Loan offers will be accessible for office, retail, rental apartments and hotels around Dublin.
The new property lender is co-invested by Canadian institutional investors and pension funds. They have given capital to Timbercreek to invest on their behalf. The possibility of expanding the funds further is also on the cards.
Timbercreek preach by their ultimate goal, which is to create long-term relationships with customers. They also promises flexible service along with quick decision making & execution.
Bradley Trotter, managing director for USA & European debt at Timbercreek believes investment will be profitable. He states: "Ireland is a growing economy, with good economic and commercial real estate fundamentals.".
They are ready to partner up - so property investors requiring finance look Timbercreek's way!