CPD Flashcards

Question

What did you learn from the following CPD: Seminar – Retail: The Big Sell?

Answer 1

* Increase in business rates and decline in consumer sentiment associated with Brexit also having an impact on retail * Large proportion of online retail sales touch a physical shop at some point * Importance of an omnichannel offering as a retailer

Answer 2

* Place shaping’ implies a continuous process, whereas ‘place making’ implies that it has an end * Long term solution for retail is creating a place which consumers want to be in

Answer 3

eCommerce penetration is strongest in northwestern European. Beginning to spread across Europe which is impacting pricing in secondary retail locations

Answer 4

Increased trend to go on a ‘staycation’. People typically willing to spend more per night because they are visiting for a shorter period of time

Answer 5

* ‘One belt one road’ will give China access to import and export to European markets * A lot of properties in US were created in the 70s or 80s as a campus – now considered ‘dinosaur properties’. Want space to encourage ‘creative collisions’ i.e. people from different areas across the business colliding

Answer 6

* Tracks all known current and past jobs with a client and the fee generated * Helps identify key clients to target and spot opportunities for cross-selling

Answer 7

* Can switch off email pop-ups on Outlook * Open Outlook on calendar screen rather than emails * Have selected stages during the day to clear inbox (typically 40% of the working day is spent dealing with email correspondence)

Answer 8

In Berkshire and West Sussex, 15% of buyers of properties under £4m are international, whereas 50% are international for properties over £10m

Answer 9

* Section 24 – tenancy does not expire but only when one party serves notice * Section 25 – landlord notice served not more than 12 months and not less than 6 months before the date for the termination of the tenancy to be specified * Section 26 – tenant can serve a notice requesting a new tenancy beginning with a date not more than 12 months and not less than 6 months after making the request * Section 27 – notice to be served by tenant anytime they want to leave with a 3 month notice after the lease expiry date

Answer 10

Failure to put a rent stop in place means a landlord could lose their right to forfeit by inadvertently accepting rent and waiving the breach

Answer 11

* Large attraction for cross border capital is the liquidity in the market as there’s lots of transactions * Asian investors benefitting from low interest rates in their home countries and preferential exchange rates

Answer 12

* Georgian – terraced houses, four/five storeys with a lower ground floor/half-basement, tall sash windows * Victorian – bay sash windows, terracotta tiles, wide mantelpieces, cast iron gates * Modern buildings – development of reinforced concrete frames, simplistic and robust

Answer 13

* Team created out of an increase in British ownership of properties abroad * Inbound desk helps buyers acquire properties in the UK, whilst outbound desk helps buyers purchase abroad

Answer 14

* IFRS 16 could drive occupiers to take shorter term leases i.e. less than 12 months * Higher net debt, higher EBITDA, high capital invested, lower ROCE

Answer 15

* Draft London Plan provided a proposal that will allow mixed-use residential development on industrial land providing there is no net loss to industrial floorspace * Led to the conception of ‘beds and sheds’

Answer 16

* Cost of capital will determine what you can buy and what your returns will be * Liquidity of London market is very important to foreign investors, whereas Manchester/Birmingham will be less liquid

Answer 17

* Energy Efficiency Regulations, 2015 require minimum EPC rating of Level E to let a building from 1st April 2018 * All existing leases from 1st April 2023 for commercial properties will have to be E or above

Answer 18

* There were only 168 residential sales over £1m in the whole of Scotland during 2017 * Land and Buildings Transaction Tax (LBTT) is much higher than SDLT

Answer 19

* Planning on using Microsoft Teams to help share market information and investor requirements * Heard from TH Real Estate about their European Cities Fund. Identified 35 cities which they can invest in a 7 progressive cities (only permitted when GAV exceeds €1.5bn)

Answer 20

* Luxury retailers using Copenhagen as entry point to the Nordics * Increased tourism from cruise shop is driving demand in luxury retail * Denmark is a tenant friendly environment

Answer 21

* ISO = International standards organisation * ISO 9001 – quality management ensure you meet the needs of customers and other stakeholders * ISO 14001 – environmental management requiring CO2 reduction, reduction in waste to landfill and implement energy saving measures * Reason for accreditation: good for the brand, best practice, reduce waste, retain clients

Answer 22

* Alternative markets becoming “core” e.g. student housing elderly and retirement care * No longer get the same returns as you would have done previously

Answer 23

* Expert witness: when surveyor provides evidence to a judicial or quasi-judicial body it is the role of an expert witness. Primary duty of care is to the court/dispute resolution panel and not the client * Dispute resolution: mediation, arbitration, independent expert determination, early neutral evaluation

Answer 24

* Estimated that 300,000 homes a year rather than the estimate 200,000 homes a year will need to be built to meet the housing crisis * Modern methods of construction need to play a larger role in developing new homes

Answer 25

* Portfolio team: dispose of assets in portfolios on an individual basis to prevent discount being offered on them * Fixed charged receivership team: usually deal with properties on Buy to Let mortgages. Will take control when then there has been a breach of the mortgage terms and will dispose of them

Answer 26

* Conflicts in Egypt and Turkey have increased demand for going on holiday in Europe * Occupancy of 82% in London and revenue per available room (REVPAR) of £117

Answer 27

* Use base layers a number of different scales when producing maps * Calculate the area and perimeter of chosen site

Answer 28

* Money Laundering, Terrorist Financing, Transfer of Funds (Information on the Payer), 2017 * Provide staff training * Comply with new customer due diligence, enhanced due diligence and simplified due diligence requirements * AML checks must be carried out to confirm the identity of the proposed purchaser * Adopt appropriate internal controls to address money laundering and terrorist financing risks and meet the requirements under the regulations

Answer 29

Matches investors who are based in London with investment opportunities across European, making use of Savills European network of offices

Answer 30

* Business rates are assessed every 5 years * Antecedent valuation date is 1st April 2019. New rateable values will come into effect on 1st April 2021 i.e. two year period between the rateable value being assessed and beginning to pay rates at that new value * Central London retail occupiers have been hit worst by the increase in business rates whilst industrial occupiers have faired less badly

Answer 31

Can undertake residential valuations loan security, tax, enfranchisement, PRS/Build to Rent, Expert Witness or Internal Purposes

Answer 32

* Five methods of valuation: investment, comparable, residual, profits and DRC * Higher yield = higher risk

Answer 33

* Estimated 4 million UK properties contain asbestos and cause 5,000 deaths per annum * Control of Asbestos Regulations, 2012 governs the management and control of asbestos. Non-compliance is a criminal offence

Answer 34

Different personality types respond best to different styles of communication e.g. made me aware that I am detail-orientated, analytical and accurate. Take a cautious and methodical approach

Answer 35

* Built environment accounts for 40% of natural resource use, 30-40% of energy use and 1/3 CO2 emissions * Important to Savills for reputation, comply with regulation and manage its resources * Savills has managed its responsibility through: BREEAM Excellent rated offices, ISO 14001 accreditation and helped make energy efficiency improvements to Savills offices (e.g. LED, Mechanical & Electrical optimisation, IT efficiency)

Answer 36

* Business lines include Transaction Advisory (sales and leasing), Consultancy (Valuation, Development, Planning etc.), Property & Facilities Management and Investment * Decrease the proportion of less transactional elements of the business to help maintain Groups performance throughout the property cycle

Answer 37

* Use the Agents Insight platform to effectively manage my live agency disposals * Taught me how to upload a property listing onto the platform and match it with live requirements from across the Industrial Agents Society

Answer 38

* Taught me how to use the Savills share platform in order to share my firms content, including research papers, blogs and podcasts, via my social media accounts, such as LinkedIn * Taught me that personalised posts are much more effective at getting engagement from your network than generic posts e.g. including a personalised strap line to a research publication

Answer 39

* Low interest rate environment means that bond yields are at historically low levels. Means that despite yield compression across the RE market, the spread over the RFR has been maintained * Combined with the cheap cost of debt, has meant that investor interest in European markets has remained high. Lack of stock as investors are holding out for further yield compression

Answer 40

* Cheap energy ($0.04 kWh) and access to renewable energy sources. Reduced need for for liquid cooling systems as a result of the natural Arctic air cooling * Norway is served by international, national and local fibre routes which provide access to the FLAP markets

Answer 41

• Taught me how eCommerce will continue to be a driving force behind take-up in the industrial and logistics sector in Europe. For every additional €1bn spend online, it requires an additional 75,000 sqm of floorspace

Answer 42

• Taught me that investors are increasingly looking to invest in the build-to-rent and retirement living sector. This is as a result of an increased number of people in the private rental sector and a growing elderly population

Answer 43

* Taught me the importance of cross checking the output of a residual valuation with comparable land sales, as outlined in RICS Valuation of development property, 2019 * Taught me the importance of conducting a sensitivity analysis of key variables such as the GDV, build costs and finance rate

Answer 44

* Taught me that developers will have to take out development finance, which will be at a higher margin, and will be converted to an investment loan upon PC * Explained how in a capital stack you will typically have senior debt, mezzanine debt, preferred equity and common equity. If the borrower defaults, then the parties will be paid out in that order

Answer 45

* Discussed how investment funds have increased their allocations towards real estate as a result of the low interest rate environment * Explained how there is a lack of sellers in the market as investors are holding out for further yield compression. They are also concerned about being unable to redeploy capital once they sell property * Whilst the spread over the RFR remains, there will continue to be capital attracted to the real estate sector

CPD Flashcards

(69 cards)