Saturday, 23 July 2016

Raviv Dozetas : ESSENTIAL LIVING infinity towers

M and G were bought in part by the prudential group in 1997, and still operate under their own brand, by in largethey operate a plethora of funds,that range in most categories horizontally across the capital markets and have various funds vertically within each category,by quantum they are valued in the billions and must therefore be seen as a step up from the Essential Living group.
What is of interest to this paper is the M and G property funds, these are aimed almost exclusively at the commercial property of all types, a closer analysis of their balance sheets shows they are invested in accommodation providers like Travel lodge, which although are not residential renters, it does show that funds of this magnitude are not investing in residential property, but are investing in almost all other classes except residential property! A closer look at their balance sheet shows that in 2015 their trades detail hundreds of millions of Pounds in property acquisitions and disposals, all of the commercial type.
Pertinent questions need to be asked why these funds are not deploying their funding to the residential markets.
At this scale even a small percentage invested into residential schemes,(and it is proposed that these would be developed for onward sale –and not retained to rent out),would result in thousands of additional units per project, this must  be multiplied by the large amount of companies of this size each capitalizing on sizable opportunities. 
Grey Star
Grey star are an American based provider of rental accommodation,they are market leaders in their various fields and offer specialised rental accommodation for over 55s, students, regular families and other sectors.
They offer 10s of thousands of apartments all over the United States, and in foreign countries to, their recent entry into the UK market has primarily focused on the student markets where they provide smart, upscale accommodation and modern hi tech facilities to include gyms, cinemas, conference facilities, restaurants etc.
The pre-existence of the rental models by Grey Star would make progression to capture market in the UK a relatively easy move for them, and obviously provide a solution to a real demand. Companies of this nature are able to undertake many projects simultaneously and as they have done to date.
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