October 25, 2006 at 6:46 am #52389
-Must be secure
-can be over 10M Euro
-Only serious projects will be replied to
October 25, 2006 at 7:54 am #67018
Assuming you are a “serious” investor, I am surprised that you find the need to post such a request on such a forum.
What yield are you looking for?
What covenants do you require?
What Countries are you interested in.
Residential, Commercial, Retail, Industrial, Leisure (A3)?
October 25, 2006 at 12:30 pm #67026
High yield investments are, by definition, insecure.
There is a direct correlation between yield and associated risk.
October 25, 2006 at 1:01 pm #67027
“High yield investments are, by definition, insecure” – certainly depends what one would class as insecure?
In property investment terms, currently a Plc tenant with a 10 years or more lease, with reviews every 5 years and current yield of 6% or more, would be classed as secure, by most private investors and Institutions.
October 25, 2006 at 1:56 pm #67028
High yield would be higher than 5-6% IMHO given that the BoE is holding intrest rates at 4,75% now. But eveything is discussible.
6% would not be high yield for my bank but it is normally associated to a secure investment as you point out.
October 25, 2006 at 2:14 pm #67029
“High yield would be higher than 5-6% IMHO” strange then that majority of commercial investments with good covenants are exchanging for 5% to 6% then.
Recent example part of retail park development. Tenants = 3, all Plc. Purchase Cost £87m yield 5.1%
If anyone is looking for yields above 6%, they need not consider Plc covenants or good lease terms.
Obviously the Institution and main stream investors have got it all wrong?
“6% would not be high yield for my bank” is that with a specific client?
Why do banks have to come into the equation. If internally funded, 5-6% is a dream return in the current financial market.
The above comments relate to investments in UK.
October 25, 2006 at 3:55 pm #67031
I don’t wish to get involved in another Byzantine discussion MG, albeit 5-6% yield is what a bank gives you for certain classes of bonds and its not high yield given that the interest rates by both FED and BoE are at or above 5%.
High yield are normally associated to Milken which gave over two digit annual returns and were known as “junk bonds” back in the eighties due to the low credit rating by S&P and other reputable credit-rating companies.
I’m sure many high street banks offer mainstream products at 5% and call them “high yield” as you point out. Other banks don’t call them or regard them as such.
As I posted, it’s basic economic theory to know that the higher the yield the higher the risk associated to it. That’s why the mathematical concept of “diversification” in an investment portfolio was developed in the fifties by Markowitz so as to reduce the inherent risk and attempt to make the portfolio securer.
October 25, 2006 at 4:18 pm #67032
“I don’t wish to get involved in another Byzantine discussion MG” Likewise and you are entitled to your opinion.
You do seem a little obsessed with banks, be it funding or investing. The business world does not start or end at the steps of the “high street banks”, in fact, in UK, for such levels of investments mentioned above, few would be interested or have the authority to discuss.
I will pass your advice on to some of my associates, which includes one of the top 10 property investment companies in UK, and perhaps they and I can learn from the advice. Also, we are now able to advise them tha the top retailer in UK, can possibly be considered not to be as good a covenant as we all believed.
Many thanks for your guidance.
October 25, 2006 at 4:33 pm #67033
just out of interest, where has the guy gone who originally posted this thread? or did he do it just to see another fight unfold¿? 😕
October 25, 2006 at 4:33 pm #67034
The simplest advise investing in property in Spain would be to wait and hold onto your money for 3-5 years. Then buy.
I don’t intend to “teach” anyone anything MG. I’m not obsessed with banks, it’s just that I happen to be a real estate lawyer and I happen to know that prices are going down no matter what the media hype or the government’s statistics say. I see it every day, it’s no big secret.
Investing now in -spanish- property is foolish. That’s why I write of banks and other investments.
I don’t know the UK property market so I won’t give my opinion on matters that I don’t know.
Anyway, my initial post was intended for Steven, nor for you. Don’t take it as something personal. In fact, I hadn’t even read your post below his.
October 25, 2006 at 4:53 pm #67035
“The simplest advise investing in property in Spain would be to wait and hold onto your money for 3-5 years. Then buy. ” Even I must agree with that.
“I don’t intend to “teach” anyone anything MG. I’m not obsessed with banks, it’s just that I happen to be a real estate lawyer and I happen to know that prices are going down no matter what the media hype or the government’s statistics say.” That is Spanish property of course, and not commercial?
I see it every day, it’s no big secret.
“I don’t know the UK property market so I won’t give my opinion on matters that I don’t know. ” That is something I do know, hence above I do mention UK.
“Don’t take it as something personal.” Never do and always prepared to learn.
October 25, 2006 at 9:00 pm #67044
Steven, just send me a bankers draft, I could put together a lucrative property portfolio and you don’t even have to have it in your own name. 8) 😉
October 30, 2006 at 3:26 pm #67099
So what happened to the serious investor who made the enquiry initially, did he end up with anything?
Obviously doubled his money overnight and disappeared.
November 2, 2006 at 9:24 pm #67209
Thx for the interest and open discussions on my original inquiry.
Some leads have been developed offline and are continuing to rollout.
If there are additional parties who can reply with additional leads, I would be interested in hearing from you.
Just for clarification:
High yield in my case refers to an avg. difference of 2% between yield and funding. Investments targeted between 10-20M Euro. Can be stretched either way.
Secure is a matter of definition. Should be relatively secure (long term lease etc.).
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