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Special Edition Torcana UK Newsletter
- Torcana UK Explained
- Why Invest in the UK?
- Latest and Forthcoming Investments
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Good afternoon and welcome to a special edition Torcana UK newsletter.
We have been promoting a range of UK properties to a discrete selection of clients for over a year now and with new resources and new people on the Torcana team I think now is a good time to bring this part of our business in front of a wider audience.
If you would like to receive regular updates on our UK products, please click here and our CRM system will add you to the distribution list (you can unsubscribe anytime you want).
Single Unit Investments
Much like our USA business, our UK arm is split into single and bulk property investments.
Popular single unit investments have included Flatiron and Canalside, both located in Birmingham city centre. These units were discounted 40-50% below previous sales prices and provided excellent medium term capital appreciation prospects. They are achieving net rental yields of up to 7%. A small selection of excellent units remain in both these developments and further details can be found below. Prices start at £72,873 (€79,250 / $119,000) and 60-70% financing is available.
Similar projects in Manchester and Leeds are in the pipeline and will be launched shortly. If you'd like to be among the first to receive the full details, simply click here and we will add you to the relevant mailing list.
Bulk Investments
For high net worth investors, pension trustees, IFAs and syndicates, we source a very wide range of residential, commercial and retail products throughout the UK. Recent investments include:
- Prime supermarket lease in North London generating a 6.1% yield on a £750k purchase price
- Premises let by large financial institution in Ipswich generating 6.25% yield on £3.6m purchase price
- Mixed use residential and commercial freehold in South London generating 8% yield on £500k purchase price
- Department store in Middleborough generating 9.5% yield on £12.5m purchase price
- Office block in Mayfair generating 6.4% yield on a £6m purchase price
- Several other residential and commercial opportunities in London area in £5-10m range
If you are specifically interested in receiving information or speaking to us about bulk investments, please email Torcana UK Director Andy Kiwanuka on andy@torcana.com with your contact details. Andy can also be reached on +44 207 193 0594.
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Why Invest in the UK?
Firstly, even though Torcana are very active in the UK and USA markets, they have very little in common with each other in terms of market dynamics. The UK property market is also completely different to the Irish one.
The UK has a diverse economy, strong domestic market, sophisticated financial systems, the ability to borrow cheaply and the capability to implement well thought out reforms. The rental markets in major cities are both strong and sustainable and are currently providing investors with the ability to purchase cash flow positive properties that can be resold to the local market in the mid to long term.
Total housing completions were about 145,000 in 2008 which was 17% lower than 2007 according to the UK House Builders Federation. In 2009 it will be closer to 80,000 units. These dramatic falls in new home starts will lead to large supply shortages in the major urban centres - i.e. places where people will always want to live and work.
UK Builders - How are they doing?
Trading conditions for major (and minor) UK house builders will continue to be very difficult in 2010. Even if prices start to rise (which they seem to be) and banks start lending to first time buyers (which they are - albeit with more strings attached), it will be a major struggle to get new units built. Why? Because the big guys have laid off huge numbers of staff and many of their subcontractors have gone out of business.
It will be even more difficult for the banks that will start seizing properties from developers who refused to discount in order to maintain sufficient cashflow to service their loans. Many will have no choice but to complete unfinished developments to tempt buyers to take them off their loan books. As any developer/contractor worth his salt knows, there are few things more difficult in the industry than kick starting a construction project that has been on hold for months.
What consequences will this have for your average investor?
The most important consequence is that the availability of finished city centre apartments with decent rental yields and substantial discounts on peak prices is extremely limited. We may only have 2-3 months left to sell these types of products. Why? There weren't that many suitable units in the first place, many have been bought, and major builders aren't having the liquidity problems they had 6-12 months ago which forced them to discount below build costs. In the last six months alone, successful rights issues have included Barratts (£750m), Tailor Wimpey (£500m), Bovis (£60m) and Berkeley (£50m).
Most importantly, and one of the main reasons these companies could raise so much cash is that market conditions in the UK are improving dramatically - see Torcana News.
Below you'll find further details on our current most popular residential developments, and don't forget - we will be launching new ones in Manchester and Leeds very shortly.
Kind Regards
Colin Murphy
Director
Torcana Ltd
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Flatiron - Birmingham City Centre
A stunning location, this development is in Birmingham city centre, within walking distance of all the major amenities, shopping and nightlife.
The development is made up of 271 one and two bedroom apartments and penthouses, situated around a calming internal water filled courtyard with inter-connecting sky bridges linking each side of the building.
We have negotiated exclusive discounts with the vendor and are able to bring a very small selection of 1 and 2 bedroom apartments, ranging in price from £86,843 (510 sq ft) to £151,713 (714 sq ft). These prices represent a 46% discount on current retail rates. Rental yields of up to 6.6% achievable, with average property tenanted within 4 weeks on a 12 month contract.
For further information, development layout & prices please reply to this email or visit our website and complete the short enquiry form.
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Canalside - Birmingham City Centre
Torcana have received permission to discretely promote a selection of studio and 1 bed properties in Birmingham ranging in size from 348 sq ft to 508 sq ft and in price from £72,873 (was £134,950) to £94,473 (was £174,950).
- These prices represent a 46% discount on current retail rates
- Average price per square foot is just £182 - incredible value
- Estimated net rental income ranges from 5.7% to 7.2% (based on official rental estimates)
- There are just 9 units remaining from a total of 123 - this is an extremely time sensitive product
For a full information pack, please visit our website and complete the short enquiry form.
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