The Eaton Active Special Opportunity Property Fund

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The Eaton Active Special Opportunity Property Fund Market Update May 2009 “Market Turning”

description

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. - PowerPoint PPT Presentation

Transcript of The Eaton Active Special Opportunity Property Fund

Page 1: The Eaton Active Special Opportunity Property Fund

The Eaton Active

Special Opportunity

Property Fund

Market UpdateMay 2009

“Market Turning”

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• The Current Market Opportunity• The Eaton Fund - Adding Value

Contents

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The Current Market Opportunity

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An Abrupt Correction

2009

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Real initial yields at historic highs Inflation adjusted initial yields

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Property Yields v Cost of DebtHighest Since 1991

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Market Sentiment Changing

Prime Yields Hardening

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The Buying Opportunity

| 2009 |

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The Current Market – DealsExamples of current high yield investment grade propositions

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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

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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

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The Eaton Fund

Adding Capital Value

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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

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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