APREA, in partnership with Ogier, recently held an exclusive breakfast seminar, Unlocking Opportunities: A Dive into UK Real Estate for Asian Investors. The event offered insights into UK real estate structuring, with the following key takeaways from the Ogier team.
- 2023 transaction volumes were markedly low due to a combination of the lack of cheap debt and a significant market adjustment causing uncertainty for both buyers and sellers.
- Purpose-built student accommodation and build-to-rent remain of interest to investors in light of changing family economics and undersupply.
- Interest rate forecasts are beginning to trend down and general sentiment observed is that we have hit the foot of the market in terms of value.
- The prospect of cheaper debt on the horizon, motivated sellers, the perceived low ebb of the value cycle and supply shortages are leading some investors we have spoken with to believe we are heading towards a 'soft-land-gradual-recovery' in the coming 12 months.
- Investors to consider the real time ESG impact on the broader environment and investment returns as UK real estate is not immune to ESG regulations and considering the country's characteristically older buildings, many of which are challenging and costly to retrofit with energy-efficient solutions
Lawrie Cunningham
Head of Real Estate Administration
Ogier
- Jersey remains a premium jurisdiction for overseas investors to establish their UK real estate holdings structures. Advantages include tax transparency, flexibility and stability.
- Jersey Property Unit Trusts (JPUTs) and companies are the favoured investment vehicle of many APAC investors (including Singaporean).
- Jersey's regulatory spectrum allows for private, unregulated vehicles through to more fund-like structures, such as the Jersey Private Fund.
Richard Daggett
Partner
Ogier
From speaking with Singaporean Investment Managers, the feedback was that there were two main motivations for investing in the UK RE market:
- Higher yields than what is received locally and stability in the UK market.
- Singaporeans are familiar with the UK RE market.
Singapore Investment Managers consider the following as key when investing in the UK RE market:
- The variety of fund structures available in different jurisdictions.
- Always consider what their investor needs are when setting up their new fund.
- Every fund jurisdiction has their own individual nuisances and there are no "simple"
- jurisdictions for administration.
- Setting up onshore funds are trending upwards.
Chris Day
Director
Ogier
If you are interested to know more about investing in UK real assets and if you have any queries in relation to the other ways in which Ogier can support you and your organisation, in relation to legal advice, administration or consultancy services, please contact Ogier: Tervinder Chal, Managing Director, Singapore at Tervinder.Chal@ogier.com and Chris Day, Director at Chris.Day@ogier.com.
Tervinder Chal
Managing Director, Singapore
Ogier
Disclaimer
The information provided is for general informational purposes only and does not constitute financial, investment, or professional advice. It is for general purposes only and does not take into account individual needs, investment objectives and specific financial circumstances. Any reliance on the information is at your own risk, and we disclaim all liabilities arising from the use of this information.
