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Market Update May 2009 “Market Turning”. The Eaton Active Special Opportunity Property Fund. Contents. The Current Market Opportunity The Eaton Fund - Adding Value. The Current Market Opportunity. An Abrupt Correction. 2009. Real initial yields at historic highs.
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Market Update May 2009 “Market Turning” The Eaton Active Special Opportunity Property Fund
Contents • The Current Market Opportunity • The Eaton Fund - Adding Value
An Abrupt Correction 2009
Real initial yields at historic highs Inflation adjusted initial yields
The Buying Opportunity | 2009 |
The Current Market – DealsExamples of current high yield investment grade propositions
Significant Players Back In The Market • Mould & Vaughan (London and Stamford) • Nick Leslau (Prestbury) • John Caudwell (Phones4U) • David Whelan (JJB, Wigan Athletic) • WW Advisors (Middle East Investors) • Stenham UK Property Fund • BP Pension Fund • Moorfield • Mars Pension Fund • AFIAA (Swiss Pension Fund) • IAK (German Pension Fund) • J P Morgan
The Current Market • Prime Yields may have ‘topped out’ • Investment Grade Yields available 7.5 – 9% • Market Bottoming Out • Asset Management and Planning Angles still overly discounted • Bank finance - terms easing – low fixed rates • Competition for best deals increasing • Smart Money and Institutions back in the Market
The Eaton Fund – Adding Value • Takes Advantage of Exceptional Market Conditions • Highly Experienced Team with Good Track Record • Adding Capital Value (not passive hold) • Asset Management Angles • Planning Consents • High Rental Yields • Cash Generative • Opportunistic but with Defensive Qualities
Summary • Abrupt market correction (25-30%) • Inflation adjusted yields now at a post war high • Prime Rental Yields hardening • Bank finance easing • Smart Investors (and Institutions) back in the market • Market turning (very best deals possibly gone?) • Eaton – benefit of high rental yields and actively adding capital value