The news that Richard Caws, the recently retired senior partner of Debenham Tewson & Chinnocks, has joined Goldman Sachs as a consultant to its real estate division gives a clear indication of the manner in which Goldman and other major overseas financial services corporations are poised to swoop in on the United Kingdom property market.
They will bring with them many imaginative innovations in the funding area of property and they can be expected to grab a significant slice of the market over the next two or three years. Many of the areas of funding and development financing that have been in the hands of the leading estate agencies and merchant banks will become their targets for attack.
From the property companies’ point of view this can only be good news; the innovative funding that some of the overseas corporations have in mind will allow developers to retain a far more significant slice of the equity in their projects than at present.
Over the past week the property sector of the stock market has been strong, with the leaders attaining new peaks as confidence grows on the future of property over the next 12 months. On Thursday May 28, Land Securities gained 8p to 496p, but London & Edinburgh Trust slipped 10p to 768p. However, Greycoat gained 26p to 373p on the funding of its Charing Cross development. Wingate rose 12p to 315p and Town Centre Securities firmed 2p to 77p. Helical Bar gained 5p to 265p and Clayform added 2p to 323p.
Arlington firmed 2p to 263p, but Bilton slipped 2p to 350p and Tops Estates lost 15p to 610p. British Land eased 2 1/2p to 249p and Newart New Northern slipped 6p to 155p.
On Friday May 29, the leaders were in very good form: Land Securities hit a new 1987 peak with an 18p gain to 514p, while MEPC added 14p to 468p, London & Edinburgh Trust rose 32p to 800p and Rosehaugh gained an impressive 21p to 949p. Southend Stadium soared 30p to 763p and Speyhawk gained 10p to 525p. Asda Properties rose 5p to 578p and Great Portland gained 6p to 590p but, against the trend, Imry International lost 15p to 540p and Marler slipped 10p to 870p. At Peachey, where bid speculation has died down, the price eased 2p to 433p. Cussins was in demand, though, gaining 20p to 340p.
The upward movement in the leaders continued on Monday when Land Securities gained a further 10p to 524p and MEPC gained 13p to 481p. Regalian was in demand, putting on 14p to 249p, while revived bid speculation pushed Warnford up 25p to 975p and Peel Holdings managed a 20p gain to 617p. Hardanger Properties added 55p to 645p and Dares Estates gained 4p to 49p, while Raglan advanced a further 2p to 27 1/2p. It was only a few months ago that a 1/2p movement in Raglan was of significance.
Slough Estates rose 14p to 272p and Alfred Walker gained 30p to 233p. But Greycoat slipped 4p to 376p, while Estates Property gained 5p to 223p and Cussins added 8p to 348p.
On Tuesday there were further spectacular gains with Percy Bilton up 18p to 370p. Imry International rose by the same amount to 543p, Estates & General put on 10p to 153p and Estates Property soared 20p to 243p. However, profit-taking clipped 8p from Cussins, which closed 8p down at 340p. Lynton Property & Reversionary rose 9p to 339p and Greycoat put on 9p to 385p.
Among the leaders, British Land gained 6 1/2p to 256p and Land Securities added 6p to a new peak of 530p, but MEPC eased 4p to 477p. Rosehaugh added 5p to 965p, but Hardanger Properties dropped 10p to 635p.
The late market rally did little to lift property shares on Wednesday, although over on the building pitch McCarthy & Stone, featured here last week, added 4p more to close at a peak 464p. MEPC lost 5p to 472p after its interim results, but Merivale Moore provided an isolated bright spot with a 15p rise to 350p.
