NewsJune In common with other parts of Northern Ireland, the property market has endured extremely challenging times arising from the global recession. The most recent figures available from the University of Ulster, which relate to the 4th quarter of 2009, reveal that house prices on average for the Derry and Strabane areas stand at £149K – a marginal increase of 0.2%. This merely suggests, hopefully, that the residential market has bottomed out. The overall average house price reported for Coleraine/Limavady and the North Coast is £163K, which is slightly up on figures for the same period in ’08. The market received a significant boost when houses at Shackleton Barracks, Ballykelly sold out within a matter of hours when they went on sale last month. 317 houses formerly occupied by military personnel and ranging from £30,000 to £65,000 were snapped up by first-time buyers and investors some of whom had camped out for over a week in order to secure what has to be the bargain of a life-time! Office rents in Derry city centre range between £12 -14 per sq. ft., which is broadly in line with Belfast city centre rents. The office sector has remained relatively static witnessing little commercial development during the past year. The loss of 300 jobs at Stream International’s call centre in the city towards the end of 2009 was a major blow to the local economy; unfortunately, there is little sign of any significant inward investment required to re-stimulate both the office market and future job creation. On a more positive note, Ilex, the co-ordinating body established to promote economic, social and physical regeneration within Londonderry and the surrounding area is busily channelling an estimated £33 million into a number of key projects involving the tourism, enterprise, education and arts / culture sectors. Ilex is also charged specifically with managing the re-development of two former military bases, Ebrington and Fort George. The 26-acre site at Ebrington which is situated on the East Bank of the River Foyle is ear-marked for mixed-use re-development that will include residential accommodation and the construction of two new schools, Foyle and Londonderry College and Ebrington Primary School. Ilex’s master plan for Fort George, located on the Foyle's West Bank, envisaged the creation of a prestige technological, knowledge-based park. The organisation is on course to realise this dream following the DSD's recent hand-over of a new, purpose-built facility to Hibernia Atlantic, the transatlantic cable firm, enabling businesses across the north-west to access high-speed broadband communications with North America directly through a transatlantic communication network. On the retail front, Foyleside Shopping Centre remains the city centre’s leading centre and a planning application for a further extension has recently been submitted, which will create c.235,000 sq ft of additional retail space, office accommodation and a multiplex cinema. Last month's acquisition of the Richmond Centre by West Register Ltd, the "distressed assets" subsidiary of Royal Bank of Scotland ended a year-long period in administration and the centre's future now seems more assured. Derry and other towns in the region, most notably Strabane, continue to benefit from cross-border trade albeit this has slowed down in recent months due mainly to less favourable exchange rates. The "Asda effect" is still evident in Strabane, where the arrival of the superstore back in 2007 has led to other retailers following suit with new names including Sports Direct and Poundland recently opening for business in the area. Across other parts of the north-west, the effects of the recession are still evident and with pressure on the public purse and spending cuts imminent, Derry and the north-west are unlikely to escape unscathed. Still, positive thinking and positive attitudes are needed more than ever and Derry’s achievement in making the shortlist for the UK’s first ever City of Culture bid is indicative of the spirit of creativity, flair and determination that characterises this part of the province. Becoming UK City of Culture 2013 would offer a huge confidence and morale boost whilst also delivering significant economic and social benefits that would have a lasting positive impact on the region. For further information, please contact: Andrew Coggins - Osborne King T: 028 9027 0022 E: andrew.coggins@osborneking.com Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 LEASE RE-GEARS: A WIN-WIN FOR LANDLORDS AND TENANTS One of the features of the present difficult economic climate is the increased dialogue between landlords and tenants. There is a growing recognition of a mutual dependence in order to ensure the optimum performance of their respective businesses. The landlord/tenant relationship is usually governed by a lease with each party entitled to rely on the performance of the terms in the lease. Consequently, a re-gear of the lease can only take place with the agreement of both landlord and tenant. That will only happen if both parties see a benefit to themselves in altering the terms of the lease. Therefore, it is fair to say that lease re-gears are a “win-win” for both landlords and tenants. The motivation for tenants is generally based on cost reduction and/or more flexibility in their mode of operation. A reduced rent, rent holiday or capital payment is usually on the tenant’s wish list, however, re-aligning break clauses to match business targets may be a requirement. Perhaps the cost reduction could be facilitated by reducing floor space occupied and at a lower rent. In reality, the whole basis of establishing the rent could be altered. In the retail sector, turnover rents are increasingly common. There are various ways in which these can be structured, but effectively some or all of the rent paid is linked to the performance of the tenant’s business. Whilst this is usually seen as a concession to the tenant, it does allow the landlord to benefit from an upturn in the performance of the tenant’s business. In a similar vein, the basis on which future rent reviews are calculated can be altered with fixed or Consumer Price Index (CPI)-linked reviews popular or reviews subject to a collar (minimum) or a cap (maximum) rent. Tenants can also benefit by benchmarking their repairing liabilities to a new updated Condition Report. This may limit their exposure to a dilapidations claim in the future. If the landlord is confident that the tenant has maintained the property well during the period of occupancy, he/she may view this concession as costing little or nothing. Greater flexibility to allow sub-letting all or part of the premises or regarding usage of the premises can also be achieved. Alternatively, the tenant may be seeking to achieve refurbished communal areas at minimum cost or an increase in the services provided by the landlord. In some cases, the tenant may even approach the landlord to provide extended premises in order to facilitate his/her business growth. Of course, a well-advised landlord will seek to secure maximum benefit from negotiations. Landlord concerns usually centre on securing income flow and maintaining or increasing a property’s investment value. Security of income for as long as possible is a particular concern for landlords at present where the recession has resulted in an increase in tenant default, pre-pack administration and company voluntary arrangements, (CVAs). Working with tenants by re-gearing the lease may be a way of helping each other through a difficult time, particularly when re-letting premises may be difficult. It follows that a landlord normally wants the tenant to commit to a longer lease or to remove or move back a break option. The landlord may also seek to have fixed or minimum rental uplifts at future rent reviews. These are features, which usually increase the investment value of the property making it more saleable. The list of potential trade-offs which can be achieved in a lease re-gear is lengthy. It depends on the terms of the current lease and the needs/desires of both parties. Crucially, the stronger the tenant covenant, the greater his/her bargaining strength. In the current economic climate, re-gearing is a positive way to help both landlords and tenants achieve their goals. Much is at stake, however, and both sides would be well advised to engage experienced, professional advisers or negotiators. For further information, please contact: Robert Watson - Osborne King T: 028 9027 0002 E: robert.watson@osborneking.com Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 MAY BARGAINS IN DIFFICULT TIME FOR INDUSTRY There is little doubt that the leisure sector has been affected by the current economic climate over the past year. A combination of job losses and a decrease in disposable income has had a knock-on effect with many licensed premises having to survive on weekend trade. Other factors are affecting business such as the smoking ban and the cost of drink in off sales. Gone are the days when many of your customers smoked 10 cigarettes and drank six pints. That person does not exist any longer as he may go for a couple of pints and then home where he can smoke and drink at a lesser price and no hassle. Another change in lifestyle is where the 18-30 group will now have a few drinks at home and then on to the pub or nightclub at 10.00/10.30 instead of being there from 8.00 pm. During the second half of 2009, the recession appeared to bite hard with eight or nine licensed properties sold under receivership and the situation has not improved this year with a further 4 or 5 premises suffering a similar fate. While there were some notable casualties such as Café Rouge and The Potthouse it is interesting to note that forced sales can produce opportunities with Café Rouge having been renamed as Horatio Todd and The Potthouse to open again in July after substantial renovation. I have currently on the market the Halfway House in Banbridge, which is in Administration and has been a well known pub for many years.  Pic: The Halfway House, Banbridge I have seen it happen many times in the past where one person’s failure can lead to another’s success. In spite of these difficult times the open market is still performing, as recently I sold 5 pubs to Bill Wolsey, The Chestnutt Inn to Derek Patterson now rebranded as the Tannery and The Wildflower in Kircubbin, while Ronan Sweeney and Danny Millar have acquired The Parson’s Nose, formerly The Marquis of Downshire, in Hillsborough. The recent past for the licensed trade has been difficult and is not likely to improve in the immediate future, but for those with a sharp eye there will be bargains. For further information, please contact: John Martin - Osborne King T: 028 9027 0018 E: john.martin@osborneking.com Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 COMMERCIAL PROPERTY INVESTMENT – “THE RECOVERY” In recent months, we have seen strong signs of recovery within some sectors of the commercial property market. It should, however, be noted, that any shoots of recovery tentatively poking through are primarily confining themselves to mainland Britain. In contrast, although conditions have stabilized in Northern Ireland, signs of recovery within the property market have only recently become apparent. Commercial property prices in Great Britain appear to have stabilized as yields settle to more sustainable levels and greater emphasis is placed on bringing quality stock to market. In fact, according to recent GB property reports, capital values have increased by 8.1% during the past year. The resurgence that has occurred can be attributed mainly to institutional and fund investors, who are returning to a market that they once dominated and buying into cities presenting solid, income-producing, quality properties. The fact that fund managers and institutional investors are diversifying from other asset classes and investing more widely in property is vital in order to stimulate the market and helps to redress the balance between private investors who had been active in recent years and institutional investment. Looking closer to home, it is evident that Northern Ireland finds itself in a unique position when compared with other UK regions. For a start, there is our involvement with the Republic’s newly-formed National Asset Management Agency, (NAMA), which affects us directly. The extent of NAMA’s impact upon the Northern Irish property market and precisely how the Agency is going to operate remains uncertain: only time will tell how the process is going to evolve and what its eventual outcome may be. Admittedly, there has been a degree of concern within the property industry regarding how NAMA will operate, however, we should be mindful of the fact that the agency’s key function is to provide stability and act as a mechanism for recovery across the Irish property market. Since local property values have declined more dramatically, the issue of funding has had and continues to have a more adverse impact upon the market. Our lenders are still extremely reluctant to fund both new purchases and finance existing stock requiring further development to maximise values. While investment transactions have occurred within the lower price bracket of £1-2 million, anybody trying to purchase property above this price level is finding it difficult to secure the necessary funding especially with increased equity to debt ratios. On a more positive chord, it is encouraging to note that many of our local investors who own properties on mainland Britain are seeing signs of recovery in terms of yields and values. Undoubtedly, this is helping to restore market confidence and promote further transactional activity. Ultimately, the commercial property market cannot be allowed to stand still. To operate effectively, it requires injections of cash so banks need to start making adequate funds available to investors in order to kick-start our local recovery. To paraphrase Gordon Brown’s comments made during the first Election Debate last month, the decision whether to put funds into the economy or take them out of the economy is just as pertinent for the banks as for Government, and it will be interesting to see what the former’s response will be! Regaining some of the confidence that has been lost on the part of both investors and funders is crucial. Local investors who entered the market purely for short-term gains have realised that they will need to devise strategies for the medium to long-term management of significant parts of their portfolios. This is why we have been heavily involved in working with our clients on developing and implementing strategies for their properties both here and elsewhere in the UK. There is no doubt that the market will be challenging going into 2011, however, I do think that there are definite signs of recovery, which will engender more realistic and sustainable market conditions, and that property will continue to compare favourably with other asset classes as a vehicle for investment. For further information, please contact: Andrew Coggins - Osborne King T: 028 9027 0022 E: andrew.coggins@osborneking.com Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 ENERGY PERFORMANCE CERTIFICATES: WHY THEY MATTER AND WHY THEY’RE HERE TO STAY Energy Performance Certificates (EPCs) are now required for all commercial buildings whenever built, rented or sold. Although the term has been bandied about for some time, there still appears to be some confusion within professional circles about how the certification process actually works. For instance, I was in communication recently with a solicitor who was under the impression that obtaining an EPC for one unit within a multiple-occupancy building would also cover similar units within that building. Unfortunately, it’s not as straightforward as that. Unless there is a communal heating system for multiple units, then a separate EPC is required for each unit within the property. So perhaps it’s time to set the record straight and spell out exactly what EPCs mean for commercial properties? The origins of EPCs lie in the UK Government’s compliance with The European Union Energy Performance of Buildings Directive, which promoted the improvement of energy performance of buildings within the Community. From 1st October 2008 the Energy Performance of Buildings Regulations (NI) 2008, stipulates that all Non Domestic Buildings being sold, rented or sub-leased (to new tenants) are legally bound to have an EPC with its own unique reference number available for inspection when placed on the open market. The sale or letting of the property will not complete without a valid certificate. An EPC gives summary information about the potential energy performance of a building, its fabric and services. It provides an A to G rating - called the Asset Rating and focuses mainly on the amount of CO2, which is estimated to be released from the building. The energy performance of the building is benchmarked against current building standards. EPCs will be accompanied by a Recommendation Report highlighting measures, which, if adopted, have the potential to save energy and money. Energy Performance Certificates remain valid for ten years unless the building is modified.  If a landlord or their agent does not provide a commercial EPC upon inspection, or with sales particulars, then they are liable to a fine from their local district council. This fine although based on a number of criteria is mainly calculated on 12.5% of rateable value between a minimum of £500 and a maximum of £5,000. The regulations state that the officer can give a penalty charge notice to any person who has committed a breach of any duty under the various parts of the regulations, in particular, 'the person giving the particulars' and 'the relevant person'. It should be noted that only a qualified and accredited commercial energy assessor can produce EPCs and Recommendation Reports. The accreditation and competence of the assessor must be suitable for the complexity of the building. At present, EPC recommendations are only advisory, however this is being reviewed, and the Government is currently engaged in a consultation exercise regarding this issue. There are some suggestions that EPC recommendations may become mandatory within the next five years. Where a tenant has been in occupation prior to 1st October 2008, and continues in occupation after this date, an EPC is not required. If that tenancy changes at a later point, an EPC will be required for new tenants. Buyers may be in a slightly better position to negotiate a keener price if the EPC shows a low rating. However, location, the condition of a building and state of the market will continue to be the dominating factors. Regardless of what happens on the 6th of May, environmental issues will remain high on the political agenda. One thing is certain: EPCs are here to stay and current legislation is likely to be extended, which will place even greater responsibility upon landlords and managing agents to ensure that their properties are legislative-compliant as failure to do so could prove costly in the long run. For further information, please contact: Sean O'Neill - Osborne King T: 028 9027 0129 E: sean.oneill@osborneking.com Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 APRIL NEXT HOME & CHILDRENSWEAR OPEN NEW STORE AT DAMOLLY RETAIL PARK, NEWRY Next Home & Childrenswear have opened a new 18,000 sq ft state of the art store at Damolly Retail Park, Newry. Trading over two levels the store provides the full Next home product range along with a childrenswear offer. This is Next’s fourth home store in Northern Ireland following previous openings at Belfast, Londonderry and Sprucefield. Next Home join the existing tenant line-up at Damolly Retail Park, which includes B & Q, Smyth’s Toys, Halfords, Dreams, Curry’s, Carpetright and Harveys. Damolly Retail Park is owned by Northern Ireland based property company, Corbo Ltd and commercial property consultants, Osborne King, negotiated the letting on their behalf. Colin Mathewson of Osborne King comments: "We are delighted that Next Home & Childrenswear have decided to open at Damolly Retail Park. Their retail offer fits perfectly with the existing tenant line-up and the significant investment that they have made in their retail environment has ensured an exciting experience for their customers. Damolly Retail Park continues to go from strength to strength and represents the dominant bulky goods retail offer in the city of Newry. In addition the scheme benefits from significant cross-border trade. A number of further lettings on the park are in the process of being finalised and further announcements in respect of these will be made in due course". For further information, please contact: Colin Mathewson - Osborne King T: 028 9027 0003 E: colin.mathewson@osborneking.com Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 NEW LETTINGS CONFIRMED AT FAIRHILL SHOPPING CENTRE, BALLYMENA Fairhill Shopping Centre, owned by Northern Ireland based property company, Corbo Ltd, has announced a number of new lettings as it continues to develop the scheme’s retail offer and maintain its dominant position within the retail hierarchy. Following on from the opening of Jack ‘n’ Jones prior to Christmas, Danish fashion retailer Bestseller has now opened a new store for its “Name It” childrenswear brand. The store stocks its full childrenswear range and represents its first store opening in Northern Ireland. In addition, Carphone Warehouse have secured a 1,500 sq ft unit in the scheme and are now open and trading. London based retail property consultancy Harper Dennis Hobbs represented "Name It" and Campbell Cairns represented Carphone Warehouse in the lease negotiations. Belfast based commercial property consultancy Osborne King acted on behalf of Corbo Ltd and Colin Mathewson comments as follows: "Fairhill Shopping Centre continues to extend its influence as a leading retail complex within the context of Northern Ireland and these most recent lettings follow on from a significant year in 2009, which saw the opening of major units for Next, New Look and Sports Direct. Corbo Ltd are determined to continually develop and improve the retail offer at Fairhill Shopping Centre and are very committed to the well being and prosperity of Ballymena generally. In the current difficult retail environment Fairhill continues to outperform its peers and will continue to introduce new cutting edge tenants and innovations". For further information, please contact: Colin Mathewson - Osborne King T: 028 9027 0003 E: colin.mathewson@osborneking.com Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 EASTPOINT ENTERTAINMENT VILLAGE - BE PART OF SOMETHING EXCITING AT EASTPOINT  For further information, please contact: Mark Carron - Osborne King T: 028 9027 0016 E: mark.carron@osborneking.com ACHIEVING AND MAINTAINING A MEASURED APPROACH TOWARDS PROPERTY OWNERSHIP IS CRUCIAL AS MARKET SLOWLY MOVES FORWARD In these challenging times for the commercial property owner, refocusing on the core facets of property ownership is crucial to future success. During a period of prolonged growth, many issues were masked by yield contractions across all sectors, which often led to a "laissez-faire" approach to owning property assets; a position facilitated by an over-heated market. Now that the music has stopped, it is those people who are prepared to roll up their sleeves and face the issues head on that will emerge better placed as the market moves forward. One of the most pressing issues that will prevail during 2010 is the threat to security of tenure posed by failing tenants. At the height of the market, a simple statement of accounts summary may have been sufficient to assess a tenant’s covenant: now we find property professionals commenting on the trading format of retailers and suitability of their offer. Indeed, one of the most threatening practices which has undermined the retail sector in recent times is the corporate tactic known as "prepack administrations" or Corporate Voluntary Arrangements (CVAs). A CVA is essentially a low-cost form of administration that allows the restructuring of an existing failing company. This may seem reasonable, however, this wholly negative step will leave a legacy across much of the nation’s retail landscape, which will hamper growth and undermine the wider property recovery for a longer period. One can only assume that this will also rest uneasily with retailers who are attempting to trade through the recession. The popularity of this tactic seriously undermines the investment value of any property, and despite transparency rules, it is hard for any property owner to identify those who are genuinely distressed. Over the last two years, I have seen many responsible landlords trying to assist tenants only to have their trust abused and the terms of the original agreement eroded. With tenants re-pricing themselves in almost all sectors and the continued stranglehold on the availability of credit, it is crucial to maximize opportunities to make individual assets as efficient as they can be. Combining this desire for financial efficiency without sacrificing capital outlay on a property can be a hard line to walk especially against a backdrop of pending lease renewals and reviews or where new tenants are actively being sought. Faced with significant threats, it is important that landlords achieve balance in their approach to property. It is all too easy to suggest that cuts be made across the board in respect of service charges, but at what cost? In a market with high vacancy levels, landlords will have to ensure that their offering presents attractively if they are to be given the best chance of filling voids. This may mean that some short-term re-investment is required, but not necessarily at the sole expense of the landlord. Property professionals providing advice should be creating opportunities to devolve these costs to tenants, where appropriate for the long-term benefit of the development. A converse approach could perpetuate vacancies as existing tenants consider their options and weaker properties are exited through the aforementioned "prepack" arrangement. It is therefore beneficial to have a realistic business plan for individual assets to deliver on all fronts and to implement that plan involving a team of professionals that can work closely to achieve the respective goals across all disciplines. As time passes and the market moves towards some degree of normality, perhaps the playing field will level out, although many landlords have experienced distressed tenancies, which have undoubtedly exacerbated the strain on funding arrangements. The only sure way to protect against this is to ensure that when purchasing a property, the asset exhibits sound investment criteria and that acquisitions are priced for risk. From our perspective, supplying high calibre advice to clients and delivering on lettings, rent reviews and lease renewal that enhance the investment profile of asset whilst also allowing landlords to re-invest in the fabric of properties in order to deliver a higher standard of end product, is vital in these leaner times, and will be key to delivering saleable assets when the economic environment improves. For further information, please contact: Gareth Howell - Osborne King T: 028 9027 0033 E: gareth.howell@osborneking.com Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 MARCH NEW FACES BUOY RETAIL MARKET BUT TOUGH TIMES NOT OVER YET There is no doubt that that 2009 was something of an “annus horribilis” for the local retail market with either the demise of high-profile retailers or the re-structuring of a number of well-known brands grabbing most of the headlines. However, there were also some signs of improvement during the second half of the year marked by new lettings accompanied by a significant decrease in vacancy levels across the province. Furthermore, the retail landscape continues to develop with major retailing names including Decathlon, Lakeland and Republic all committing to new stores for the first time in Northern Ireland, which clearly demonstrates their confidence in the local retail market. The French-owned sports clothing and equipment retailer, Decathlon, has taken a 40,000 sq ft store at Holywood Exchange on the outskirts of Belfast. This is Decathlon’s first store anywhere in Ireland and extends the retail offer of sporting goods substantially beyond what is available currently in any one location on these shores. Meanwhile, leading UK fashion retailer, Republic, is also making its Northern Irish debut by taking a 10,000 sq ft store over two levels at CastleCourt Shopping Centre on the prominent corner of Royal Avenue and Berry Street, Belfast. The new store, which was occupied formerly by Zavvi, is scheduled to open mid March and demonstrates owner, Westfield’s continuing commitment to securing strong brands for the centre. Indeed, CastleCourt is a prime example of a dynamic shopping centre that has adapted its retail offer to suit the needs of its customers by introducing a selection of middle to value-level retailers whilst maintaining the quality and variety of its overall tenant line-up. This is borne out by a significant increase in footfall despite continuing economic difficulties. Over at Balmoral Plaza on Belfast’s Boucher Road, Lakeland, one of the largest UK kitchen and homewares companies has signed a lease on a 10,000 sq ft store, which will be the company’s first store on the island of Ireland. Starting out as a small, family-owned business supplying polythene bags to farmers in England’s Lake District back in the 1960s under the name of Lakeland Plastics, the company now supplies over 4000 products to customers all over the world by mail order, on-line and through its network of 44 stores across the UK. In addition to injecting new lifeblood into the local retail market, these new arrivals will undoubtedly help to sustain cross-border shopping, which has acted as something of an economic buffer during the past eighteen months. Obviously, continuing points of difference between the Northern Irish and Republic of Ireland’s retail offer such as marked price differentials and currency rates are also important factors in the equation. Although the local retail sector benefitted from a strong Christmas and post-Christmas sales period, the reality is that retailers have almost without exception experienced a more difficult trading environment during January and February, which was due mainly to a combination of bad weather and continuing financial pressures on consumers. It is hardly surprising that most retailers are saying that they are expecting 2010 to be another difficult year. Wider political and economic issues including the forthcoming General Election, uncertainty regarding public sector cuts and further job losses realistically indicate a long road towards economic recovery. A key issue last year was the re-alignment of rental values across all retail centres both in and out of town. Although this proved a painful exercise for landlords, the majority worked hard to overcome vacancies by being more imaginative in terms of structuring deals and securing tenants. Indeed, during the second half of 2009, we saw a raft of new lettings, a decrease in vacancy levels and a return to more normal levels of occupancy. Admittedly, challenges remain for landlords in terms of rental levels and incentives required to secure tenants, however, the market appears to have stabilised. While 2010 will still be a year of tenant opportunity, landlords are now regaining some ground and demand is apparent across most sectors. Therefore, even though the retail landscape remains unsettled, it is clear that the private sector stakeholders, namely landlords and retailers, are adapting quickly to market conditions with rental levels and costs being squeezed significantly. This has been a painful exercise for all concerned and landlords, in particular, have had to make difficult decisions along this path. However, in order to maximise the recovery of the retail sector, it is vitally important that the public sector also plays a role in this process. Consequently, an efficient planning system that recognises the benefit of retail development and job creation is imperative along with a more open-minded approach to potential change of land use within the context of planning policy. Given the nature of the public sector, this is clearly a big “ask” and therefore must be a real focus for local politicians if it is to make a difference. For further information, please contact: Colin Mathewson - Osborne King T: 028 9027 0003 E: colin.mathewson@osborneking.com Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 WILL 2010 MARK THE RETURN OF THE INSTITUTIONAL INVESTOR? Although we are in the midst of a steep economic downturn, commercial property prices appear to have stabilized across the UK market leading many to view property once more as a suitable investment asset class. As memories of unprecedented growth recede, yields have settled at a more sustainable level, which is encouraging private investors and funds to invest once more in the commercial property market. In fact, according to recent UK property reports, capital values increased by 8.1% during the past year. Tempted by the prospect of good returns when measured against asset classes, institutional investors are drifting back to a market that they once dominated. The fact that fund managers are diversifying by investing more widely in commercial property is a vital step forward in terms of stimulating the market whilst redressing the balance between private and institutional investment. In recent years, funds and institutions while not abandoning commercial property investment completely had been squeezed out of the market effectively by private investors who were capitalizing on the low cost of debt finance. This was certainly evident within our local market resulting in a number of funds either selling out or unable to purchase as yields were driven to record lows by other private local investors. The shift in unrealistic attitudes towards property as a short-term investment proposition to regarding it as a longer-term, solid investment vehicle is more closely aligned with the objectives of organisations that have the ability to buy with cash as opposed to leaving it in the bank. Locally, we are seeing signs of the cash-rich private investor coming back into the market for much the same reason. Obviously, the issue of funding continues to be a challenge for both existing and prospective investors, particularly on the local front. In general, banks north and south of the border are reluctant to lend freely into commercial property requiring higher levels of equity before making finance available. Government measures such as quantitative easing and the reduction of VAT from 17.5% to 15% for the duration of 2009, in my view, helped to stabilise the market with some regions faring slightly better than others. For instance, Northern Ireland still has to deal with the fact that residential values, which declined dramatically last year, continue to have a wider impact within our local economy especially in relation to speculative property development, which has all but ceased. If we are to experience resurgence in commercial property over the next few years, pricing levels must reflect the fundamental change in banking and financing practices, which have altered dramatically. Whether you are a risk-averse or bullish investor, bank finance will inevitably play a crucial role in the majority of property transactions. What must be borne in mind is the intrinsically cyclical nature of the property market, which means that upturns generally succeed downturns. Furthermore, we should not lose sight of the fact that the concept of buying and selling property is embedded within the Northern Irish psyche and that this desire will never abate. For further information, please contact: Andrew Coggins - Osborne King T: 028 9027 0022 E: andrew.coggins@osborneking.com Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 FEBRUARY CASTLECOURT ROUND-UP CastleCourt Shopping Centre in Belfast has experienced a flurry of activity in recent months with the opening of over 15 new shops according to letting agents, Osborne King. The centre enjoyed a particularly busy trading period over Christmas with average footfall up by 4% compared to figures for the previous year exceeding all expectations. Reports also indicate that the amount of time spent by visitors to the centre also increased, helped in part by an influx of shoppers from the Republic of Ireland. Leading fashion retailer, Republic, will be making its debut on the Irish retailing scene when it opens its first store at CastleCourt during early spring. The company has an extensive chain of 97 stores across Great Britain and stocks an eclectic mix of top fashion brands aimed mainly but not exclusively at the 16-25 year old market. Occupying the former Zavvi store, which fronts onto Royal Avenue, the new Republic outlet will comprise 10,000 sq ft of space stocking high fashion menswear and womenswear The roll call of names new to Castle Court includes Fastfix, a jewellery and engravings store, Lifestyle Sports, sports retailer, Dead On, Yankee Candle, Orange, Teddy Mountain, The Spinning Wheel and Gems. Among the newcomers are new entrants to Northern Irish retail, Poundland, Europe's largest single price trader, Flexa, which sells high quality children’s furniture while juice purveyors, Zumo and Glitz Jewellery occupy two new kiosks at the Centre.  Pic: L to R - Paul McMahon (Westfield) and Alana Simpson - Osborne King In late 2009 the centre owners also invested substantial funds on the reconfiguration and construction of the upper mall, this has significantly improved the circulation around the mall and has facilitated a further new letting to Costa Coffee in a vibrant open plan central mall café. Commenting on recent lettings at CastleCourt, Alana Simpson from Osborne King's Retail division said: "Market conditions have been extremely difficult everywhere during the past eighteen months; however the reality is that retail is a highly dynamic business that will always seek to adapt to the prevailing economic climate. CastleCourt is a prime example of this in that it has adapted its retail offer to suit the needs of its customers through introducing a selection of value-type retailers whilst maintaining the quality and variety of its tenant line-up overall." She continued: "Visitor numbers have remained high; in fact, the centre had over 15 million visitors last year, who are undoubtedly attracted by the diversity and range of goods and services available at CastleCourt, which is unrivalled elsewhere in the city centre." Paul McMahon representing Castle Court's owners, Westfield Group, added: "We continue to look for opportunities in the marketplace which will enable CastleCourt to meet the demands of our loyal customer base. The retail offer in the centre has been significantly strengthened in the past year and the addition of Republic will be a great boost to the 2010 offer." For further information, please contact: Alana Simpson - Osborne King T: 028 9027 0020 E: alana.simpson@osborneking.com Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 JANUARY SPORTS RETAILER DECATHLON FOR HOLYWOOD EXCHANGE European sporting goods giant Decathlon will open its first store in Northern Ireland in May. The French retailer has signed up to take 40,000 sq ft (3,700 sq m) at AXA Investment Managers' Holywood Exchange retail park in Belfast on a 25 year lease. Duncan Mathieson, Managing Director of Realis Estates, which asset manages Holywood Exchange on behalf of AXA Investment Managers, said "this is yet another landmark deal for Holywood Exchange. We were chosen as the location for the very first Ikea in Northern Ireland in 2008 and now Decathlon has also picked the scheme for its debut store. The arrival of Decathlon will further strengthen the tenant line-up at Holywood Exchange and coincides with the opening of a new catering offer that will help boost dwell time and spend at the scheme." Decathlon offers sports equipment and services for the whole family and for all levels of sports enthusiasts – from beginners to professionals. Babar Ahmad, Decathlon UK Expansion Manager, said "we are pleased to have signed up for Holywood Exchange. Our company started out in 1976 in Lille and has now grown to have more than 450 stores worldwide."  Pic: Holywood Exchange - Decathlon Unit Holywood Exchange comprises more than 630,000 sq ft (58,500 sq m) of retail space and as well as Ikea its other key tenants include B & Q, Sainsbury’s, Next and Harvey Norman. In addition, work on a new 10,000 sq ft (930 sq m) restaurant area at the retail park is expected to begin later this year. Harvey Spack Field, Osborne King and CBRE acted on behalf of AXA Investment Managers. For further information, please contact: Colin Mathewson - Osborne King T: 028 9027 0003 E: colin.mathewson@osborneking.com Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 OUTLOOK ON COMMERCIAL PROPERTY: GOING BACK TO THE FUTURE The aptness of the old Chinese curse "may you live in interesting times" has been very apparent over the last 12 months. Nothing has been straightforward and the continued lack of available funding from major financial institutions hampers any significant uplift in transactional business. The recent introduction of legislation in the Irish Republic confirming the statutory power of NAMA to underwrite toxic loans made during the insane property rush between 2003 and 2007 may well stabilise fears of financial meltdown, but also adds a new level of confusion to an already confused marketplace. What is worth buying and what represents fair value in these uncertain times? Some commentators would have you believe that all property is now a risky proposition, and yet the UK auction houses are seeing stellar demand for product that fits investor desire to move money into safe assets with reasonable returns. The key to success is market knowledge, sound advice and experience of how to operate in difficult circumstances. I am all in favour of youthful enthusiasm, and having recently turned fifty would like to be able to turn the clock back a little, but I would not wish to trade any of the experience gained over the last 25 years. At the heart of all investment decisions, property included, lies the assessment of risk and investors’ willingness and ability to absorb the consequences of their decision. Risk cannot always be assessed easily and youthful exuberance rarely errs on the side of caution. Even the world’s greatest golfer has found out over recent weeks that if you believe the hype alongside a sycophantic entourage, you can bring all your successes crashing down around your ears. Tiger's advisors are guilty of ignoring his actions and obviously lacked the experience to assess properly the risk to their investment. Trading our way out of the current recession will be a slow and complex process from which not everyone will emerge unscathed. The development of workable medium to long-term strategies is of paramount importance to property investors who will need to find ways to achieve support from their funders that will enable them to achieve sales and reduce debt. The next 5-10 years will be conservative so really understanding your market and adjusting your pricing to meet actual demand are essential. Over the last number of years, Northern Ireland-based investors have been heavily dependent on extraordinarily high loan to value ratios, and consequently we have been slower than other regions to recognise the need to re-price investment assets. Northern Ireland needs to attract outside investment; in order to do so, we must be priced competitively in comparison to other UK regions. If we do not adjust our expectations, we will not see any significant inflow of cash. Not all sectors of our market are currently flat lining. The office rent review market has continued to show rental growth over the last year and I urge all landlords holding such assets to be well advised as you enter the review process. A clear understanding of the issues and comparable evidence is essential if you are to maximise your assets. Opportunities exist to re-gear leases and trade immediate rental growth for longer-term continuity of income or more advantageous provisions, which can make the investment more saleable in the current market. Seek out the relevant experience if you want to see growth in this sector. Well-secured investment properties of up to £2m are also highly in demand as an alternative to the paltry interest rates currently available. Many investors try to reduce debt burden by attempting to sell their weaker assets whereas they would ease their position faster by selling something the market actually wants to buy. Identifying market opportunity and pricing appropriately will be the difference between success and failure over the next period. This again requires experience and confidence from the advisory team who will ultimately prove their worth if they achieve the strategic goals set. Larger assets require careful structuring in order to place them successfully in the wider UK market. As we enter a new decade, I predict less excitement albeit hopefully more stability in property. Prices have readjusted and a limited number of transactions are being progressed although the pace of play is still heavily dependent on availability of finance. The biggest change will be the re-emergence of old fashioned banking requiring proper business planning and well thought out proposals if developers/investors wish to do business. The age of the "back of fag packet" appraisal and "pretty boy" agent is over. Welcome back experience, warts and all! For further information, please contact: Martin McDowell - Osborne King T: 028 9027 0007 E: martin.mcdowell@osborneking.com Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 THE BOAT - YOUR CHANCE TO GET ON BOARD  For further information on The Boat, please contact: Robert Ditty - Osborne King T: 028 90270000 E: robert.ditty@osborneking.com TOUGH TIMES FOR LICENSED PREMISES Over the last thirty years, I have been involved in the sale and valuation of countless licensed premises across Northern Ireland, and during that time I have tried to be realistic in respect of my assessment of the market at all times. During this period, the industry has endured tough times such as the early 90s, but I have never experienced a more challenging period than the past year or so. For those of you working at the "coal face", there is little point in my glossing over the current situation as we all need to face up to reality as it presents itself. The one point that I would stress is that although the credit crunch has had the greatest impact in terms of prevailing difficulties within the licensed trade industry, other factors including the smoking ban and the price of alcohol sold off-sales have also played significant roles. Gone are the days when many of your customers smoked ten cigarettes and drank six pints of beer during the course of an evening at the pub: that customer does not exist any longer. Instead, he or she is opting for a couple of pints in the pub and then returning home to drink alcohol at a cheaper price and enjoy a cigarette without any hassle. Another growing trend relates to the 18-30 age group whereby people will now have a few drinks at home before going out to a pub or nightclub at around 10.00/10.30 pm as opposed to heading out earlier in the evening. During the first six months of 2009, the licensed premises market was awash with rumours regarding various premises being in trouble with receivership reputedly just around the corner. Needless to say, the licensed trade is never short of rumours many of which were either exaggerated or totally unfounded. Unfortunately, the rumour mill was correct in some cases, and after the summer, approximately eight pubs including The Potthouse, Irene & Nans, Café Rouge, all in Belfast, and Kaya in Bangor went into receivership. In my experience, there have never been so many licensed premises in administration or receivership within such a short space of time. I have been involved in the sale, acquisition or valuation of all of these premises, and while the credit crunch has been a major contributory factor, other underlying problems came into play. On a slightly brighter note, not all of these sales were forced: I sold a portfolio of five pubs to Beannchor as well as The Chestnutt Inn in Moira. There are buyers out there, provided you know where to look.  Pic: Kaya, Bangor Whether or not the next year brings another rash of forced sales is difficult to predict albeit in my opinion, we are not finished yet and more casualties may occur within the first half of 2010. While I have great sympathy for those whose businesses collapse, there is little doubt that this also presents opportunities for those in a position to buy. Prospective purchasers also face the hurdle of being able to obtain finance with the majority of banks only considering applications from purchasers with at least 50% equity. The most common complaint that I have heard this year concerns the attitude of banks who are interested in "restructuring your loan", which basically means charging you more for your existing loan rather than lending new money! Meanwhile, the breweries have more or less ceased providing funding to purchasers. In my opinion, the next 12 months will continue to see a realignment of prices with the days of £2 in the £1 of net turnover relegated firmly to the past. On a more positive note, if you are considering selling, make sure that your accounts are up to date and that they clearly show the profitability of your business. I can assure you that buyers still exist, and for those with an eagle eye, there could be a few bargains although unless you are sitting on a mountain of cash, I would recommend that you speak to your bank before undertaking a purchase. The hotel sector in Belfast has also had a difficult year with occupancy levels dropping and having to resort to very aggressive pricing in order to attract business. Whilst it is good to see four new hotels opening in the Greater Belfast area, such as Premier Inn in Lisburn, Ramada Encore at the Cathedral Quarter and the Ibis Hotels at Castle Street and University Street, it is even better for the customer in providing an abundance of choice. It is interesting to note that many hotels are busier from Friday through to Sunday night which is a complete reversal of a few years ago when occupancy levels were higher from Monday through to Thursday driven by the business traveller. By offering attractive packages they have managed to open up a new demand with the strength of the Euro encouraging the Southern market. Hopefully when the economy picks up both ends of the week will be popular as Northern Ireland have the facilities to offer the business and tourist markets. It is my opinion that in general the licensed trade has coped well in the current market and have made stringent efforts to keep overheads down and look for new avenues of business. While the competition between on and off sales is unlikely to disappear it will never prevent people wanting to socialise in pubs, hotels or restaurants. For further information, please contact: John Martin - Osborne King T: 028 9027 0018 E: john.martin@osborneking.com Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 COMMERCIAL PROPERTY OUTLOOK 2010 2009 was a challenging year for the commercial property market in Northern Ireland, with a relatively low level of transactional activity across all sectors. However, confidence is returning and some improvement was evident in the latter stages of that year, in particular within the investment and retail sectors. We expect this to continue into 2010 with the rate of recovery modest, due to the lack of bank finance and the limitations this will place on development and trading opportunities. RETAIL The retail market experienced an unsettled year during 2009, which was most apparent with the high profile demise and re-structuring of a number of well-known brands. However, it is accepted generally that the sector showed real signs of improvement during the second half of the year with a raft of lettings taking place and vacancy levels across the province decreasing significantly. Although rental levels remain depressed and it is certainly still a tenant’s market, an increase in transactions is a healthy sign and it is anticipated that this improvement will be reflected in 2010 with an improved retail environment. As with previous years, the influx of southern shoppers at Christmas has delivered a significant boost to the retail sector and in particular to the supermarkets and “big ticket” retailers including the electrical retailers, Smyth’s Toys and Argos. The penetration of this business into the province has increased beyond the main border towns and cities, with Belfast city centre also benefitting from the additional Euro business. The most significant trend during 2009 was the arrival of the discounter retailers to the province. During the year, B & M Bargains, Poundland, Poundworld, Ethel Austin and T J Hughes all committed to new stores across the province and have been received warmly by the consumer. T J Hughes has taken a major unit at Cityside Retail Park, which is due to open in March 2010. In addition to the discounters, the key opening in Belfast city centre was Hollister at Victoria Square, which has been a major attraction and one of the main reasons for southern Irish shoppers to visit the city centre this Christmas. Republic have also confirmed that they will be opening their first store in Ireland shortly in the unit formerly occupied by Zavvi in Castlecourt at Royal Avenue.  Pic: Poundland It is anticipated that the discounters' appetite for new units throughout the province will continue into 2010 although the main limiting factor in achieving this may well be the availability of suitably sized units. A key issue during 2009 has been the re-alignment of rental values across all retail centres both in and out of town. This has been a painful exercise for landlords, but most have worked hard to overcome vacancies and have retained key tenants where possible. In the current economic climate, and in particular the current banking environment, cash flow and therefore rental income has been crucial to landlords. The outlook for 2010 in the retail sector appears positive with increased tenant demand and lower vacancy levels now apparent. Although challenges remain for landlords in terms of rental levels and incentives required to secure tenants, the market appears to have mainly stabilised. While 2010 will still be a year of tenant opportunity, landlords are now regaining some ground and demand is apparent across most sectors. Colin Mathewson - Osborne King T: 028 9027 0003 E: colin.mathewson@osborneking.com OFFICE The office sector, which had experienced strong growth in both capital values and rental levels 2007/2008, has slowed despite an increase in requirements. A number of high profile office developments including Obel, The Boat, Clarence West, The Soloist and Lanyon Plaza either reached virtual completion in 2009 or will be completed in early 2010. Prime rental levels had achieved £15.00 per sq ft, however, due to the availability of new schemes and financial pressures upon developers, rental levels have fallen back to headline rents of c. £13.50 per sq ft. On the other hand, a number of newly refurbished prime office suites are due to come to the market in 2010 with quoting terms of £15.00 per sq ft.  Pic: Obel, Donegall Quay We currently estimate that the Belfast office market comprises 350,000 sq ft of available space with a further 300,000 sq ft becoming available in 2010 and approximately 1,000,000 + sq ft in planning, however, it is unlikely that this will be developed in the short term due to current stock levels and lack of available finance. As highlighted, the number of active requirements increased notably in the fourth quarter of 2009, which is a positive sign for 2010. Despite budgetary constraints, the public sector has a number of large scale office requirements most notably Northern Ireland Water and the Public Health Agency as well as smaller requirements province-wide whilst the private sector continues to have smaller requirements of up to c. 10,000 sq ft, but primarily in and around Greater Belfast. As a result, both sectors are able to achieve competitive rental and leasing terms and we are aware of existing landlords negotiating on existing terms in order to ensure continuing occupancy. However, it remains essential that landlords take advice to ensure maximisation of existing lease terms including rent review uplifts. Outside the city centre demand for owner occupation has suffered due to the unavailability of finance and whereas values had reached £300.00 per sq ft, capital values have reduced to around £200.00 per sq ft. Despite the intentions of the Bain Report to encourage public sector relocation outside Greater Belfast, there has been limited uptake owing to a shortage of quality office accommodation and the difficulties developers have had in securing finance, particularly for speculative development. In our opinion, speculative development whether in Belfast or further afield is unlikely for the next few years simply due to financial constraints. In conclusion, it is positive to see an increase in the level of requirements, which hopefully will result in a take-up in existing stock, however, we envisage that the office letting market will continue to be testing in 2010. Gavin Clarke - Osborne King T: 028 9027 0031 E: gavin.clarke@osborneking.com INDUSTRIAL The industrial sector has experienced another very challenging year. Average capital values have stabilised, however, rents have decreased, yields have moved out and land values have dropped further. There is now a wide disparity in industrial rents across the country ranging from under £1.00 per sq ft up to c. £4.50 per sq ft. This is dependent not just on the location but also on the landlord. The impact of vacant rates and the increasing surplus of available stock have meant that landlords are more prepared to do more attractive deals; therefore the market has given prospective occupiers a range of options on both quality, price and length of lease. Large industrial sales have been rare. We are aware of large industrial complexes selling for c. £120,000 per acre (excluding the buildings on site) in Ballymoney. The 286,000 sq ft Sanmina Electronics Factory at Ballinderry Road, Lisburn set on 10 acres was sold for £3.5 million in the last quarter of 2009.  Pic: Randalstown Road Business Park At the height of the market, industrial land in Greater Belfast was selling well in excess of £1 million per acre and in a wider Northern Ireland context, in excess of £500,000 per acre with capital values in excess of £100 per sq ft. Capital values now range from c. £40 to around c. £75 per sq ft for new/nearly new stock with older stock as low as c. £20 per sq ft, but again there have been very few actual sales. Average industrial yields now range between 9% - 10%, although there were few actual sales in 2009. The letting side is slightly more encouraging. Osborne King has negotiated c. 40,000 sq ft of lettings in three units in Mallusk over the last six months with another c. 50,000 sq ft under offer at present. We have also let c. 20,000 sq ft of small workshop/storage units in Derriaghy Industrial Park, Dunmurry. The park comprises a total of c.150,000 sq ft of 1960s/1970s buildings, which provides small units offered on economical rents and flexible lease terms from one to three years are filling a gap in the market created by the current economic downturn. The traditional industrial centres of Mallusk and Duncrue continue to have a range of vacant units available as well as a high level of leasehold transactions. The outlook for 2010 is challenging. An easing of fiscal constraints on lending by the banks would be a welcome boost. On balance, we do not foresee a significant uplift, but a stabilisation on 2009 levels is likely. Chris Sweeney - Osborne King T: 028 9027 0032 E: chris.sweeney@osborneking.com INVESTMENT There is no doubt that for much of 2009, the banks' lack of liquidity meant that they had limited funds available for property investment, and this coupled with a drop in the value of assets and related loan to value issues left few people in a position to invest. In recent months, we have noticed a shift in sentiment as some investors who are not restricted by a lack of bank finance have come back into the commercial property market tempted by the opportunity to acquire good-quality product at competitive prices and attractive yields. Institutional investors, pension funds, trusts, cash-rich private companies and individuals are taking advantage of the fact that some sectors of the market, particularly prime property, have experienced a bottoming-out of yields and are injecting capital once more into this sector. Allsops, one of the UK’s leading auctioneers and property consultants, reported total commercial auction sale proceeds for the year as amounting to £446 million, which was a 30% increase on 2008 sales figures. The company attributes this increase to a combination of cash-rich buyers coupled with a restricted supply of properties and realistic pricing, which it claims helped to stimulate sales during the past year. Closer to home, we are seeing a distinct resurgence as private local investors seek good-quality stock. Most recently, a number of sale and leaseback opportunities brought to market by one of the province’s main clearing banks shows that that strong prices are still achievable - indeed, some of the deals in which we have been involved in 2009 support this theory. Notable deals include a local investor’s acquisition of premises within a landmark new town centre scheme in Barking, Greater London in a deal worth £5.3 million, the sale of a property currently let to M&S Simply Food in Coleraine for over £1.75 million and a Sainsbury's foodstore in south-east England for £6.1million. Price yields for these long-let, blue-chip investments typically range between 5-6%.  Pic: M&S Coleraine While there has been a notable increase in investor appetite during the last quarter of 2009, this has mainly been restricted to long-let prime investments. Investors owning assets in other sectors are having to focus extremely hard on managing their assets in order to maximise returns. Now more then ever is the time for sound advice and strategic asset management, an area in which we as a firm have been extremely proactive over the past few years. As banks enter a new financial year, some may opt to clean up their loan books in order to start afresh in 2010, which in itself could bring further opportunities to the market. After all, we should not lose sight of the fact that property historically has been and looks likely to remain a preferred asset class and, as such, is a solid investment vehicle for those who have access to funds. Andrew Coggins - Osborne King T: 028 9027 0022 E: andrew.coggins@osborneking.com LICENSED PREMISES There is little doubt that the leisure sector has been affected by the current economic climate over the past year. A combination of job losses and a decrease in disposable income has had a knock-on effect with many licensed premises having to survive on weekend trade. However, many pub and bar owners have risen to the challenge by introducing promotional offers such as meal deals for £6.95 in order to attract customers through the door. The hotel sector in Belfast has also had a difficult year with occupancy levels dropping and many had to resort to very aggressive pricing in order to generate business. While it is good to see four new hotels opening within the Greater Belfast area including Premier Inn, Lisburn, Ramada Encore, Cathedral Quarter and the Ibis Hotels at Castle Street and University Street Belfast, it is even better for the customer in terms of offering an abundance of choice. Hopefully, demand will grow during 2010 as there is little doubt that Belfast now offers a wide choice of hotel accommodation in first class, purpose-built hotels.  Pic: The Wildfowler Inn During the second half of the year, the recession appeared to bite hard with eight or nine licensed properties sold under receivership with the banks appearing to take the view that since the economy was unlikely to take a sudden upswing, forced sales were the only way forward. On a more positive note, sales did occur during 2009. For instance, Osborne King negotiated the sale of a portfolio of five licensed properties to Bill Wolsey whose long experience within the trade has stood him in good stead. Other sales during the year have proved that a market still exists for good properties. All in all, there is no doubt that opportunities exist and for those with the energy, experience and vision, 2010 may well be a good year to acquire property within the licensed trade. John Martin - Osborne King T: 028 9027 0018 E: john.martin@osborneking.com For further information, please contact: Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275
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