Good morning. Here is your morning round up of the latest news and views from EG and some industry-relevant headlines from the nationals.
Some green shoots of recovery are being seen in UK real estate, as returns slowly start to recover. But only barely. The latest MSCI figures show returns from Q1 rising by 0.1% on the previous year, but still languishing at -13%, with negative capital growth “all but” offsetting income growth.
Indeed, Abrdn’s UKCM has seen capital values rise by a timid 0.9%, while MSCI’s average fell by 1.2%.
But there is the threat that those fragile shoots won’t survive a sudden cold snap. And that is exactly what US fund managers are warning will come. They say commercial real estate will be the “next shoe to drop” after the turmoil in the banking sector. Let’s hope there will be no icy winds from the west…
WeWork’s restructuring has put it on the “runway to deliver”, according to CEO Sandeep Mathrani. The flex space giant has cut its Q1 losses to $299m – a $205m improvement – and is hoping EBITDA will be profitable in Q2.
Hong Kong billionaire Li Ka-shing is close to buying Civitas Social Housing after its chair recommended CK Asset Holding’s £485m offer. Even though the 80p a share is 27% below NAV, Civitas reckons it is the best it can expect.
Meanwhile, General Projects and Neo Capital have closed a £40m deal to buy Liverpool’s Royal Albert Dock. The 375,000 sq ft leisure and cultural quarter is made up of the largest single collection of Grade I listed buildings in England.
And Harworth has sold two business parks in the North West for £35.8m.
Ireland plans to set up a sovereign wealth fund next year, modelled on those in Norway and Australia, using an expected €65bn budget surplus.
And the boss of John Lewis will face a confidence vote by staff members on Wednesday over plans to diversify into building flats for rent.
Notting Hill Genesis is being challenged in the High Court over its plans to regenerate south London’s Aylesbury Estate.
And the Devon island that inspired Agatha Christie is up for sale with a £15m price tag. But despite invoking murderous thoughts in Christie, Burgh Island is actually quite charming.
And finally, ever fancied winning one of our coveted EG Awards? Often come close, but never quite got over the line? Well, help is at hand! We’ve picked the brains of some of our amazing judges to find out what makes a winner.
