MORNING NEWS: The end of false dawns for real estate?

Good morning. Here’s your daily round-up of the latest news and views from EG and a collection of industry-relevant headlines from the nationals, all perfectly curated to set you up for the week ahead. The positivity for real estate performance continues to gain traction as more and more investors and commentators – many not known for their bullishness – see light at the end of the tunnel for property. This morning, fresh from a strong set of results, TR Property fund manager Marcus Phayre-Mudge said he thought that the “false dawns” that had kept investors on the sidelines would soon become legitimate dawns. “These false dawns have led to many investors remaining on the sidelines, awaiting harder evidence of base rates falling. Our central case is that this point is drawing ever closer but, crucially, our positioning and optimism is not dependent on major reductions in interest rates,” he said. Rising demand for UK film studios and backing from a who’s who of Hollywood directors and actors failed to be enough to convince Buckinghamshire councillors to allow a £750m development to be built in their backyard. Plans for Marlow Film Studios, which have been in progress since 2021, were thrown out on the grounds that they would result in “spatial and visual harm” to the area and conflict with policies aimed at preserving the green belt for outdoor sport and recreation. The scheme was to be built on a former quarry and land infill site next to the A404. Marlow Film Studios chief executive Robert Laycock said the firm was now considering its next steps for the project. “Despite many members on the committee crediting the quality of the application, and acknowledging the very significant social and economic benefits it would bring to Buckinghamshire, we are disappointed the committee was not able to support this extraordinary proposal,” he said. “It is one of the most significant investment opportunities in the future of Buckinghamshire and its residents, and we are now considering the next steps for the development.” Elsewhere across the UK, Birmingham City Council continues its sell-off of assets. The indebted local authority has put a further 12 assets up for sale through Bond Wolfe. The mix of freehold investments and ground rents will go into the auctioneer’s 11 July sale. So far, the local authority has sold around 40 properties through Bond Wolfe, raising more than £6m. It has also instructed LSH to sell a portfolio of ground rents for £20m. In February, the council secured £1.2bn of exceptional financial support from the government after effectively going bankrupt. It needs to repay the cash through £750m of asset sales. Council leader John Cotton joined EG at UKREiiF last month to talk about the need to continue the regeneration and development of the city, despite its financial woes. In a session looking at how to unlock regeneration in cash-strapped regions, Cotton said: “There is a forest fire that is raging in local government finance at the moment. We have seen 40% reductions pretty much across the board in English local councils over the past decade. For Birmingham that means we have lost £1bn effectively over that period.” But Cotton pointed to partnership and investment coming into the city and insisted that, while he has to deliver core services, focusing on longer-term, regenerative projects that can fix a range of the city’s socio-economic issues has to stay front of mind. “We have to remain fixed on those longer-term goals, otherwise we are not going to be able to move anything forward. We’re going to be in permanent crisis management,” he said. “This is the big trick we need to achieve across the public sector. How do we ensure we are focused on those longer-term objectives, focused on early intervention and prevention. That then enables us to look at how we invest in some of the big-picture opportunities.” Just two days remain to bag yourself a ticket to EG’s Future of the Workplace event next week. Space is fast running out for the event, which promises to provide solutions to many of the conundrums the office sector currently faces. Find out more and book your ticket here. All of the news from EG, plus a selection of headlines from the nationals: Are real estate’s false dawns coming to an end?CLS offloads Birmingham office blockTriple Point progresses £20m portfolio saleHollywood-backed studio plans fail to shine for BuckinghamshireBrum council  to sell 12 more assets through auctionShaftesbury Capital flexes with yoga anchor in Seven DialsGLi expands urban logistics footprint with Jewson buySIOR appoints new presidentUnlocking regeneration in cash-starved regionsLabour to overrule councils to build data centres on green belt (£)Manchester Airports Group seeks international expansion (£)TDR to acquire majority stake in Asda as Issa brothers split empire (£)The Issa brothers built an empire. Now a wedge is driving them apart (£)Middle East buyers miss out as Caring walks away from The Ivy (£)