Prime London Central Residential: Is the bubble about to burst? A Presentation by London Central Portfolio, Residential Funds and Asset Managers

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Prime London Central Residential: Is the bubble about to burst? A Presentation by London Central Portfolio, Residential Funds and Asset Managers. Looking at PLC residential as a commercial asset class. The pastthe present. The future?. The elephant in the room. Risk Warning - PowerPoint PPT Presentation

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<p>Slide 1</p> <p>Prime London Central Residential: Is the bubble about to burst?A Presentation by London Central Portfolio, Residential Funds and Asset Managers</p> <p>The pastthe present...The future?The elephant in the roomRisk WarningViews and opinions expressed in this presentation are those of London Central Portfolio Limited and do not necessarily represent the views of any third party associates who in no way warrant the accuracy or completeness and accept no liability for any direct or consequential losses arising from its use.There can be no assurance that current market conditions will remain in the future. Past performance does not guarantee future results. Actual results may differ materially from the forecasts/estimates. Views, opinions, trends and prices expressed are subject to change without prior notice and are expressed solely as a general market commentary and do not constitute investment advice or a guarantee of returns. Looking at PLC residential as a commercial asset class</p> <p>Not the UK23m residential units63.2m people61,840 sq. milesAverage price 238,293 </p> <p>Not Greater London12.5% UK population8m people33 boroughsPerformance closely correlated to the UK</p> <p>Not... the East End, home of the Olympic Village 19,574 Planning permissions. Average price 231,296 11,430 Planning permissions. Average price 370,500 </p> <p>Not...Canary Wharf, home of Multinationals </p> <p>Average price 1,359,736 378,045 people5,000 transactions p.a.It is Prime London Centralthe home of...184,308 units</p> <p>613 under construction</p> <p>It is the bullseye of the capitalMade up of numerous villages around Hyde Park</p> <p>The long termGlobally desirableInternational centreHighly demanded asset backed investmentLow dependence UK economyIrreplaceable architecture</p> <p>Go-to destinationLondon Residential A Capital Growth AssetPrices have increased over 65 times since 1969</p> <p>Source: CML, ODPM, OCLG Past performance is not a guide to the future</p> <p> Capital Growth Since 1969</p> <p>The short term</p> <p>A robust performer in volatile marketsLondon Central vs FTSE 100 (Q3 2007 = 100)</p> <p>A strong story to tell in all market conditionsPerformance of gold versus London Central(1995= 100)</p> <p>To many foreigners, Central London is cheap cost of Central London property based on different exchange rates(Oct 2007= 100)</p> <p>9111In 2010 HNW population was 10.8m: 2000 buyers for each London propertyThe scares resource: Volumes fall by 59%Annual actual transaction volumes from 1996</p> <p>5365</p> <p>Current growth is spot on long term trendLondon Central actual growth versus long term average growth (1995= 100)9% p.a.</p> <p>Significant Growth ProjectedAnticipated price growth for Prime London Central residential propertySavills (+19%)JLL (30%)Knight Frank (+18%)Source: Jones Lang LaSalle 'On Point', Savills Residential Research, Knight Frank Residential Research</p> <p>LCP (36%)Index 2012 = 100</p> <p>Central London is not just for the globally richSocial Housing:25% versus 18%Empty Homes: 1.4% vs 1.1%Private Rented Sector: 38% vs 17%Young, between 25 44:40% vs 27% </p> <p>CosmopolitanNot Born in the UK:53% vs 13%Second Homes:5.6%New residential property taxes... </p> <p>7% for 2m+</p> <p>15% for 2m+ for certain NNPsCapital Gains Tax</p> <p>Annual Tax For Enveloped Dwellings</p> <p>Carve-outs Good News For Investors For Now!</p> <p>But more taxes in pipeline</p> <p>GDP in Westminster &gt; any other London borough100,000 students at world top universitiesTourism and night time economy: 8bn p.a.PRS contributes 1.5bn p.ato economyand 0.5bn to the Exchequer</p> <p>Global capital the jewel in the crown Our 6th biggest importMany drivers for growth in PLC...Enormous in terms of impactTiny in terms of size</p> <p>Long and short term indicators do not suggest a bubble, but continued buoyancy</p> <p>Long and short term indicators do not suggest a bubble, but continued buoyancy</p>