MENA PPT November 2009

UK residential propertyNov 2009

Contents

Long term trends

The recession

Recovery

Our approach

The ethical, green, UK student fund70%+ of the world’s bagpipes 70%+ of the world’s oil

Edinburgh

London

The worlds largest festival

1,000 Castles

Europe’s 3rd largest financial centre

A bit about Scotland…

500 golf courses700 islands

UK property

BristolGlasgow Liverpool

Newcastle

Manchester DundeeEdinburgh

Nottingham

Long term trends

Long term trends – ownership.

Residential:• The rental market remains small• The Gov. aims to encourage its growth

Long term trends – size and ownership.

Residential

a very large asset class, with low UK Institutional participation

Above: Residential consistently outperforms other asset classes

Below: Residential has been less volatile in a downturn

Long term trends – residential performance

UK asset performance to December 2008

Long term trends – price growth.

Residential: London and UK move in the same way

Source: Halifax and Government

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500

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700

800

UK Property

London Property

Long term trends – price growth.

Residential: Long term stable growth and low volatility

Source: Halifax and Government

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200

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FTSE All ShareUK PropertyLondon Property

Recession

Recession – overall impact (peak to trough)

-40% Shares

CommercialProperty

All ResidentialProperty

Gm Residential

-15%

-45%

-11%

Recession – city by city performance

Gm has outperformed the market by 30%

Land Registry Gm Funds Diff. 

Edinburgh -10% -6% + 4%

Glasgow -13% -7% + 6%

Stirling -11% -7% + 4%

Dundee -11% -4% + 7%

Newcastle -13% -8% + 5%

Nottingham -14% -15% -1%

Birmingham -14% -12% + 2%

Bristol -19% -13% + 6%

Liverpool -13% -12% + 1%

Salford -15% -14% + 1%

Manchester -15% -18% -3%

Grand total -15% -11%

Recession – recent international price trends

Recession – recent price trends

Prices have risen for 7 consecutive months

Recession – a positive impact on the student rental market

+10%

• Large / growing student market• 175,000 students turned away!• Shortage of student housing

Recovery – 4 stages

‘House prices have risen for the past 7 months’ – Nationwide

Headlines

Our approach

What we do

Property funds

We outperform the market by 30%

Private Clients

‘One stop solution’

• Source

• Renovate

• Furnish

• Let / manage

About Grant Management

Worldwide client base

12 UK cities £500m / 1,850 prop. under man.

Lloyds Banking Group own 20%

ARLA members / code of practice

Traditional over new build?

Shortage of supply Better locations Higher yields

0%

1%

2%

3%

4%

5%

6%

7%

London New build Gm

2%

Gross Yields

7%

4%

How we add value

Buying well Price, location Investment model

Renovations On time – 8 weeks On budget - fixed price

Management Safety/ compliance Occupancy – 95%

Before After Diff.

Value £215k £250k + £35K

Rent pcm £788 £1,400 + £612

Yield 4.4% 7.6% + 72%

Case Study – adding value

2 (MD) Summerhall Square, Newington,

Edinburgh, EH9 1QD

Bought: Mar 2009

Renovation Costs: £32,475

Our homes

The student market

Large university cities Secure income (Joint leases/guarantors) Universities “recession proof”

Around 75% of our properties are let to students

• Residential is a good asset class

• Gm offers a great solution for private clients and funds

• Student Market is large and growing

• Great time to buy

Summary

1. To help new clients to enter the market

2. To build partnerships

3. To partner fund managers and sovereign wealth funds

Castles BanksFunds

Our aims

Long term trends

The recession

Recovery

Our approach

10 second tour of scotland

Golf

Monsters

Castles