The largest and most liquid real
estate market in Europe, but with what may become a two-speed
economy, the UK remains a compelling country of focus. The key
divide is between London, with its prosperous financial community,
and the post-industrial regions often over-dependent on the public
sector. In London, Internos employs 38 real estate and financial
professionals. It is our main centre for fund management, capital
relationships and investment services.
Economic characteristics
With 62m population, the UK has a single metropolis: London, and
the South East region, prosper along with the global economy. The
fiscal deficit is one of the largest in Europe but the coalition
government, through planned spending cuts, has seen bond yields
kept low and the currency stabilising at levels to benefit
exporters. With half the area of France but similar population,
land shortage and zoning are drivers of capital values. Inward
migration, especially into the South East, remains important. Of
the world's top 500 companies, 21 are headquartered in London.
Outlook
Upward pressure on rentals in all London and South East sectors,
except possibly industrial real estate are expected to eventually
affect secondary as well as prime offerings. Outside the South
East, urban areas with low dependence on public funds such as
Edinburgh, Nottingham, Bristol, Manchester should also benefit.
Bank 'unbundling' from commercial real estate will be a major
factor until at least end 2013. (see the decisive eye issue
2)
Focus
Primarily London and South East: most sectors, particularly
offices and retail. Maintaining our close lender relationships to
reveal recapitalisation, revitalisation, mezzanine finance and debt
fund opportunities.
Internos in the United Kingdom
Internos London office contains all necessary asset management,
transaction and financial skills to identify and invest in a full
range of real estate opportunities.