Real Estate

The real estate sector is at the heart of the UK economy and faces both opportunities as well as challenges

The real estate market is experiencing significant disruption, in part driven by the impact of the internet on the way commercial property is used and sold. Arguably, as a sector that is more sensitive to changes in the business lifecycle than others, it is unsurprising to note that whilst the underlying performance of businesses within this sector during 2018 were okay, the overall feeling by the end of the year was one of despair and pessimism.

Background

Over the last few years, the market has benefited from historically low interest rates and significant liquidity. Some would even argue that in comparison to other sectors, real estate has remained particularly resilient to macro-economic forces. However, more recently and as Brexit draws closer, this sector has been grappling with challenges caused by both the economic and geopolitical climate, as well as by regulatory and tax pressures. With rising costs and a rapid increase in customers' demands, the real estate sector finds itself in mildly unfavourable circumstances, especially where retail property is concerned.

Outlook

Whilst past performance of most sectors can usually be a good indicator of future activity, where real estate is concerned this is often not the case. There is continued uncertainty as to the strength of liquidity as a result of factors incluing: the impact of changes in retail strategy; the pressure for affordable housing; as well as generation Y and a change in the use of office space.

The construction market has been impacted recently with the demise of Carillion and consistent rumours about the strengths and weaknesses of some of the UKs largest construction and development companies, whilst some of the UK’s biggest cities continue to see a wealth of new commercial and residential development.

How Quantuma can help

Our real estate sector group see real estate opportunities and challenges on a large number of cases (where the business is not property-focused). We provide advisory services to companies as well as individuals trading in the construction and real estate sectors. For example, these may be real estate lawyers, landlords, tenants, property investors or property lenders.

Our experience includes:

  • Renegotiation or refinance of real estate debt
  • Restructuring of property portfolios
  • Adivising landlords in relation to tenant issues
  • Due dilligence on prospective tenants
  • Management and buildouts of developments through administration
  • Receiverships over both low- and high-value commercial real estate
  • Matrimonial disputes involving real estate

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