Image courtesy Grand Estates Auction on Facebook

Recent strong growth in the luxury property auction industry, combined with the addition of several new employees necessitated the move to a larger headquarters. The company headquarters are now at 2010 S. Tyron Street, Suite 1D, Charlotte, NC 28203 in Citispace in Southend, at the intersection of South Tyron Street and West Tremont Avenue. The new location is nearly 6000 ft.² and is close to interior design shops, restaurants, home furnishing stores and the LYNX Blue Line light railway. It’s a refurbished two-storey brick and metal clad building with a contemporary floor plan. It has many private offices and large windows, and benefits from double the square frontage of the previous office. The new location is able to comfortably accommodate the sales, marketing, administrative and management operations, and has ample space for the 14-year-old company to grow.

Stacy Kirk Reich, president of Grand Estates Auction Company said:

“We are extremely pleased with this expansion. Our move to this building provides much needed space for the Grand Estates team and reflects the growth of the luxury real estate auction industry in general. As the real estate market recovers, luxury homeowners across the country are looking for innovative ways to market their properties and determine the fair market value for them. Our clients are motivated sellers who understand the live auctions provide fair market value in its purest and quickest form. Since these auctions are becoming more popular, our business and staff are growing quickly, and our need for more space in the home office is pressing.”

The move took place over the first weekend in February, and all systems were operational on Monday, February 4. The company’s phone number hasn’t changed, just the address.

Grand Estates Auction Company was established in 1999, and was the first of its kind. It’s the leader in the niche market of auctioning luxury real estate, and specializes in properties valued at or in excess of $1.5 million. The Charlotte-based company also has offices in Vail, CO, Atlanta, GA, Naples, FL, and Aspen, CO. More information about the company can be found by visiting their website.

Sao Paulo Stock Exchange

Brazil has exempted foreign investors from paying a financial transaction tax if they purchase real estate investment trusts traded on the country’s stock exchange. This measure announced on Thursday was taken in hopes that foreign investments would be encouraged and later support Brazil’s economic recovery.

In the past year, the Brazilian government has focused on determining alternative sources of funding for local businesses, the majority of which are highly dependent on loans taken from state development bank BNDES, which is the primary source of long-term funds for the Brazilian corporate segment.

The newly introduced tax exception is expected to increase US dollar inflows and help maintain the strength of the local currency. Yet the main reason for the exemption was to encourage investment’s in Brazil’s real estate market.

“The objective here is to stimulate long-term investment in the real estate sector,” Dyogo de Oliveira, a senior finance ministry official, told reporters in Brasilia. “This measure should not have a relevant impact on the currency.”

As a result, BM&FBovespa SA’s IFIX Index that tracks the most-traded real estate investment trusts (REITs) in the Sao Paolo Stock Exchange, went up 0.62% on the day of the announcement.

“On the back of low yields across global assets, these funds should arise as an interesting alternative to international investors,” BTG Pactual Group analyst Alexandre Muller said in a note. “Due to the general scarcity of good yields available in most of the financial assets … we anticipate new buyers for local real estate funds.”

REITs, usually inflation-adjusted as rent contracts in the country are linked to the IGP-M (the local consumer and wholesale price index), represent a very attractive investment opportunity, contrasting with the overall slow-growth of the local market which has seen interest rates at a record low. The average local REIT offers interests of 7-8%, as compared to only 4% for a 10 year inflation-linked bond issued by the Brazilian government.

This is not the first measure the Brazilian government takes to stimulate the real estate sector. In December 2012, they s reduced payroll taxes for construction firms, trying to stimulate investments.

Photo - Rockmysock, Wikipedia

The new record is also eight times higher that the 2009 amount invested in student accommodation, the market analysis revealed. Last year’s biggest transaction in this real estate investment segment was the the recapitalization of University Partnerships Programme (UPP) Regional Portfolio. Barcap’s 60% stake in UPP’s assets, estimated at £840 million, has been recapitalized by Dutch pension fund manager PGGM.

‘Although the number of student applications and acceptances fell in 2012, capital committed to the sector has grown dramatically over the last 12 months,’ said Jo Winchester, head of Student Advisory, CBRE. ‘Our latest 2012 data shows that student housing is outperforming other asset classes by some margin, as it has delivered 9.6% total returns in 2012. This compares to 4.4% for all offices and 2.2% for all retail over the same period,’ she explained.

The specialist student funds and developers are expanding their domination of the student accommodation investment segment as they deploy larger amounts of money both within London and in other regions across the UK, improving the health of the overall UK market.

‘As an investment, student accommodation is relatively low risk and provides a secure income. Occupancy levels remain high, especially when compared to the vacancy rates in some mainstream sectors, and most university towns remain undersupplied,’ she added.

This new data clearly show an ongoing demand for student accommodation throughout the UK, a demand shown by both students and investors interested in a lucrative, counter cyclical asset class, Ray Withers, chief executive of property company Property Frontiers explained:

‘We have seen no let up in the volume of student property enquiries received in 2012 and are aware of the ever increasing numbers of projects being brought to market. Student property remains attractive as an investment where there is an imbalance between supply and demand but in some cities, supply issues are being met and so investors should, as ever, do their research and select the right place to invest.’

© Lagartija de colores – Fotolia.com

Leading real estate analysts Zillow say that around a third of American homeowners are mortgage free, representing almost 21 million people. This figure is around 3% less than the number of mortgage free owners in 2010, but REMI believes this is due to an increase in bank lending compared to 2010, and isn’t due to a larger debt burden or a weaker economy.

As such, REMI is advising mortgage free home owner readers to buy a second property, as this sector enjoys good credit, and have a large asset for collateral, both of which makes them prime candidates for new mortgages.

There are numerous cheap properties still available through short sales or through foreclosures, and with loans at historic lows, investors are able to take out inexpensive mortgages to buy new property and can quickly flip them. They can also be rented out providing sustainable income for the owners. There is little risk for homeowners whose personal properties are already bought and paid for.

United Realty Trust said that it’s IPO would encompass up to 100,000,000 shares of its common stock, and that the firm would continue to admit new investors on a daily basis until these are sold. For the first batch of 5,000,000 shares, these will be offered at the discounted rate of $10.45 per share, and once these are sold the remaining 95,000,000 shares will be offered at the price of $11.00. In addition to this stock, United Realty Trust is making another 20,000,000 shares available under its distribution reinvestment program for the lower price of just $9.50 per share.

The company announced that transactions will be dealt with by its representative stock broker Allied Beacon Partners, Inc., with primary shares being offered to interested investors on the basis of best efforts.

United Realty Trust stock looks to be a tempting investment, considering how successful the real estate investment program has been since its founding in 2011. The company already has significant holdings in a wide variety of property types, including multi-family homes, single-tenant properties, hospitality, offices, industrial and retail properties, among others, and will likely use the funding it attracts to further these investments.

For interested investors, note that the offering is only available by means of a prospectus, a copy of which can be had by contacting its partner Allied Beacon Partners on (888)-275-2279.

Image courtesy nwtransplant

As 2012 drew to a close, there were successive sales of two mansions at Westway Drive in the Lido Shores area involving deals worth a total of nearly $10.4 million, while in May SBRE sold a Ritz-Carlton condo near the Golden Gate Point Peninsula area, a transaction that was worth nearly $1.2 million. Although the firm feels the outlook is encouraging, it still thinks there is a largely untapped growth potential within this sector.

At the end of the year there were 700 luxury homes listed for sale, representing a 20 month inventory. The overall market has an inventory of just four months.  SBRE is in agreement with other realtors, in that enticing more foreign buyers, particularly European investors would add more excitement to the Southwest Florida luxury home market.

In 2012 there was a 15% increase in the number of foreign visitors in the area, and real estate agents feel additional gains could be achieved if more direct flights from points of origin overseas are accommodated at the Sarasota Bradenton international Airport. At the moment this airport only has a Canadian air linkage. Some of the larger realty firms are already spending substantial sums to try to stimulate interest in affluent overseas buyers, particularly those from Canada, Latin America and Europe.

Lake Club, an upscale gated community in the master-planned development of Lakewood Ranch is just one property that has already seen significant success in attracting overseas buyers. Approximately 11% of the residents in this neighborhood are from foreign countries including Canada, Poland, Spain, France and the UK. This particular development was named as being the best master-planned community in the US in 2011, but still has around seven years of construction before it is completely built out.

The 12 assets contributed by Prologis have been appraised at approximately JPY 173 billion ($2 billion). Mainly comprising properties located in Tokyo and Osaka, the newly establish portfolio totals 9.6 million square feet (890,000 square meters), the weighted average age being of 3.4 years.

NPR has already been approved for listing on the Tokyo Stock Exchange. The real estate investment trusts will serve as a long-term investment vehicle for modern logistics facilities.

As part of NPR’s efforts to expand its portfolio, the trust already has exclusive negotiation rights for another eight properties owned by Prologis. Through the sponsor support agreement, Prologis will also provide pipeline, operational and personnel assistance. Moreover, Prologis’ wholly owned subsidiaries will act as NPR’s property and asset managers.

Although the sponsorship is a great opportunity for the US-based Prologis, it not intended as a securities sales offer in the United States, as securities may not be offered or sold in the United States unless they are registered or exempt from registration. Yet the high-profile player in the industrial real estate market comes with valuable expertise which will benefit NPR. Focusing on global and regional markets across the Americas, Europe and Asia, Prologis currently owns or has invested in properties and development projects from 21 countries which will amount, upon completion,  to about 565 million square feet (52.5 million square meters).

The report shows a great contrast between prime assets in key locations and the rest of CEE countries, the difference only getting bigger. Quality asset in Warsaw, Moscow and Prague are quite attractive, while the rest of the CEE region shows extremely feeble interest when it comes to commercial real estate investments.

Offices are the most liquid segment, amounting for 44% of the volume, according to the report, but that is due to a low supply in quality retail assets. The industrial segment is also showing some increase in investment interest, a trend to watch in 2013.

“Due to high levels of vacancy and relatively low net absorption in recent years, investment in the office segment in Prague has remained low. Prime assets are in demand, however, and are proving difficult to obtain,” said Jos Tromp, Head of CEE Research & Consultancy, CBRE. “The purchase of City Green Court by Deka from Skanska for around €54 million confirmed the prime yield levels quoted for Prague. In Warsaw more offices were traded during 2012; however, investors have also started to price in the risk of vacancy increasing over the next 12-18 months.”

Mike Atwell, Head of CEE Capital Markets, CBRE, added:

“With the pricing of prime office assets relatively stable in most segments and markets, thus far pricing for secondary offices – even in the most liquid cities – has moved by at least 75-100 basis points to date. Some investors have started to show interest for value-add opportunities in prime office locations in order to pro-actively prepare for the anticipated increasing vacancy. The yield gap between prime offices in the capital and regional cities amounts to around 150 bps. Generally the gap between prime and secondary is expected to increase through to the end of 2013.”

“One of the main factors that is boosting the property business in Bali is its year-on-year economic growth, exceeding national economic growth,” Selawa explained.

Bali’s economic performance in 2012 was labeled as outstanding, with a 6.6% annual growth, above the Indonesian average national economic growth of 6.1%. Bank Indonesia released data showing that, despite the global economic downturn, Indonesia and Bali in particular, continued to see strong economic growth. The inflation was also rather low, with a reported value of about 4.6%

Other than the general economic state of Indonesia, property business in Bali will also be fueled by the various infrastructure developments that are currently underway, a fact that has positively influenced investor’s confidence in this particular real estate market. The construction of a toll road connecting Benoa, Ngurah Rai International Airport and Nusa Dua, an underpass at Dewa Ruci intersection, and the expansion of the Ngurah Rai airport are the biggest such developments in the area.

“Low interest rates, at an average of 9 percent, also contribute to the growth of the housing sector,” Selawa added.
REI Bali’s data also showed that land prices in several areas close to the city center and in the Badung regency were expected to to skyrocket to around Rp 4 billion (US$420,000) per 100 square meters.

“Next year, the price of a 100 square-meter plot could reach Rp 4 billion, up from Rp 2.6 billion this year. Last year, the price was still hovering between Rp 1.7 billion to 2 billion,” Selawa said.

In Kuta, Seminyak and Legian, all hot spots of the Badung regency, prices would reach around Rp 3 billion to 4 billion for 100 square meters in 2013. For properties around Denpasar, the price has already increased from Rp 200 million to Rp 300 million, and is expected to further increase and reach 400 million.

Property consultant Elite Haven-Knight Frank has released the finding of the research he had conducted which shows that land prices in various strategic areas of Bali have reached a 43% growth, the highest increase of the past 10 years. Price growth has previously varied between 8 to 16%.

Photo source

Reggie is listed as being one of the 10 most reliable realtors on the East Coast in Forbes magazine, and is consistently a top producer for the company. In addition, she has also been listed as one of the top 5% of sales agents in the country.

Janet Gordon Rubino, vice president and manager of the Devon office had this to say about Hunt:

“Reggie has been listing and selling real estate for over 25 years in the Philadelphia suburbs and the Main Line. Being a native of the area, she has full expertise of the area schools, and the important nuances of each neighborhood. Her experience with land, estates, horse farms, older homes, historic homes and new construction reflects vital knowledge needed to service buyers and sellers.”

Reggie Hunt is a relocation specialist and holds the SRES (Senior Real Estate Specialist) designation. In addition Reggie is a designated Extraordinary Properties® Specialist and a Christie’s Great Estates® Specialist. Before becoming a realtor she worked on Wall Street for 10 years in the financial services industry. Reggie has a bachelor’s degree from Wheaton College and has served on the Board of Directors of several local companies. She also finds time to be actively involved in many charities. She lives in a beautifully restored older stone house, and her hobbies include horse riding and tennis, and has bred champion Norwich Terriers.

Hunt can be contacted on a 610-888-6313.

Long & Foster Companies is the parent company of the largest independently owned residential real estate company in the United States, Long & Foster Real Estate, Inc., which has more than 12,000 agents in seven Mid-Atlantic States, plus the District of Columbia. Last year the company sold more than $22 billion worth of homes, and helped more than 69,000 people buy and sell property. More information about Long & Foster can be found on their website.