Acuitus and Investment Property Databank (IPD) have launched cPad (Commercial Property Auction Data) – a new “Market Flash” information service which will be issued to coincide with key periods of activity during the commercial property auction year.
By drawing together IPD and EIG’s unrivalled market data together with Acuitus’ unique view as the leading specialist independent auctioneer, cPad will place what is happening across the auction sector into the context of the wider investment market place.
Acuitus Chairman and Auctioneer, Richard Auterac, commented: “cPad Market Flashes will give invaluable perspectives for everyone involved in commercial property investment.
“They will provide relevant key economic data together with insights into current key property market indicators.
“We hope cPad will become an essential source of information and give a unique perspective on the commercial property market for private investors and private property companies. The aim is to create a valuable snapshot of today’s market and help investors shape their future investment strategy.”
Using data sourced from IPD and the Essential Information Group, the cPad Market Flashes provide expert commentaries on both the auction sector and also the general economic situation which influences it.
Greg Mansell of IPD commented: “Creating cPad was a natural response to investors’ increasing appetite for timely market information and analysis which draws upon the links between the economy, institutional property investment and private property investment. It is a service that sheds light on both current property trends and future risks”.
The first cPad Market Flash records that yields have weakened throughout 2011 with the cPAD All-Property Yield currently standing at 8% – up 30 basis points from May and 80bp from February. Retail yields not surprisingly mirrored the rise in the All-Property Yield with the current cPad Retail Yield standing at 7.9% having risen 70bp since February.
The most favoured investments are characterised by their location (London and South East) and a reasonable length of unexpired lease. A combination of these characteristics can produce a yield which is almost 200 basis points keener than the cPad All-Property Yield.
The IPD UK Monthly Index shows capital values for standard shops in London are up 1.6% in the three months to July 2011, whereas values are down 0.4% outside of London, during the same period.
Greg Mansell observes: “The collapse in consumer and retailer confidence observed over the last few months has forced investors to retreat back to London and prime regional assets just as the secondary market looked poised for a recovery. Yields are moving out in the auction market, giving an early indication that the pricing of heightened tenant risk and weaker value growth expectations are back underway in the secondary market”.
The first cPad Market Flash auction commentary concludes: “The ‘new realism’ in the property investment market is in stark contrast to the volatility in the equity markets, and should mean that an increasing number of investors will make their way to the commercial property auction room.
“Investors are taking an increasingly forensic approach: looking not only at strength of covenant but also the general prospects for the business sector in which occupiers operate. They realise that longer leases and upwards-only reviews are only of value if the tenant stays in business.
“It is a time of very differing opinions. In any investment market that can only mean that over the long-term there are opportunities to capitalise on.”
To access the full cPad Market Flash click here
For further infomation, please contact:
Richard Auterac Acuitus +44 (0)20 7034 4851 (richard.auterac@acuitus.co.uk)
Greg Mansell IPD +44 (0)20 7336 9384 (greg.mansell@ipd.com)
