Hungry For Yield

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What we hear from leading investors:
  • Hungry for yield everywhere
  • Interest rates are set to continue a measured rise throughout 2017
  • Tier 2 & 3 markets are worth exploring for counter cycle investment plays
  • US market retail suffering and mixed use is the future of mall projects
  • Singapore is close to the bottom and it is time to buy again
  • Industrial developments in Hong Kong can produce a 15% IRR
What we see from leading investors:
  • Placing term sheets for $20-30MIl AUD for debt deals in Brisbane, Perth and Auckland
  • Still, keen on London and the UK market
  • Aggressively seeking retail opportunities in Australia
  • Moving up the capital structure into senior debt opportunities
Our Long/Short Pick:

We are LONG London property as the Brexit mess will clear at some point and investors will realise the UK was a dominant force pre-joining the EU, and it will be perfectly fine once the dust settles. No investors we know outside of Europe care too much for UK/EU trade volumes/issues.

We are SHORT apartments in downtown Melbourne especially the “highest” buildings being built in the Southern Hemisphere, guess they didn’t get the memo about the overbuilding, increased stamp duty and challenges for foreign buyers to get home loans.

Relevant Real Estate News:

The team would love this to come true, Singapore is the only developed market where real estate prices have actually gone down over the past 5 years (we can’t find any other). When cooling measures lift…at some point….global capital should come rushing back.

NZ is one of the best countries on earth, no surprises we guess, but still Auckland real estate has risen faster then every other major developed global city on the planet in the last few years…

The Global Cities Index makes projections about the growth potential of 128 cities on different continents.

San Francisco is ranked number one in the outlook category. It is best positioned to attract and retain global capital, people, and ideas in the coming years even as the Trump administration talks about cracking down on H1-b visas for tech workers.

Paris rose from 13th to 3rd place this year in the outlook category. The outlook for Paris is better than London due to a newly discovered focus on start-ups, incubators, and support for entrepreneurs.

Recent Deal Flow:
  • New York Commercial Developemt-18% IRR
  • Boston Hotel Value-Add Investment- 20% IRR
  • Phoenix Multi-family Residential Repositioning – 22.6% IRR
  • Sydney Commerical Debt – 8.5% IRR
The Future of Finance Summit Singapore 9 Jun 2017
Invited Speakers

Last week we joined some intelligent investors and gave them the download on all things internet finance + real estate

This Week’s Investor Event (Sold Out):
  • How do we see the latest tax regulations affecting the Hong Kong market?
  • Has Singapore real estate hit the bottom and what comes next?
  • Brexit and what we think it means to UK real estate investors?
  • Trump’s latest tweets and where we see opportunities in USA real estate?
  • The so called bubble in Australian residential market and what is really happening?
  • Venue: Tribe, 51B/52  Circular Road, Singapore 
  • Time: Wednesday, June 14th, starting at 6 PM sharp
And Lastly…:

We really don’t even know what to say about that…..

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