Issue 7

GLOBAL

PROPERTY NO. SCENE ISSUE 007

The Number One Buy-to-Let Magazine | www.globalpropertyscene.com

This issue: Should I move to St. Petersburg? | A guide to classic car investment | Should you rent or buy?

Sky City - China’s flatpack skyscraper | The story behind HS2

FOCUS ON : ABERDEEN

FROM RUSSIA WITH LOVE

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INSIDE Features

15 Rent or buy?

35 Sky City

42 Public or private?

73 What’s the alternative?

Homeownership versus renting; mortgage payments versus tenancy agreements: this has been the decision facing most adults seeking independent living for decades, with a fierce debate raging around whether owning your own home is actually better than living in the private rental sector.

Sky City will proudly sit on the Changsha Hunan skyline at a dizzying height of 2,749ft and will contain 202 floors which will house residential apartments with capacity for over 17,000 people, a 1,000-capacity hotel, office spaces and shops. As if this wasn’t enough, a section of the building’s 13 million square foot is reserved for a hospital and five schools within its soon-to-be iconic walls.

In any country, its public services define its whole identity. Just look at the UK: its National Health Service is one of the country’s most defining attributes—known as the world’s largest publicly-funded health service, and impressively is the fifth-largest employer in the world (employing approximately 1 in 23 of the country’s working population).

As the hammer fell on the 1962 Ferrari 250 GTO at Bonhams’ Quail Lodge auction in February, the market analysts were busy revising their price forecasts. The headline price of $38,115,000 (£22.8m) – a new auction world record – captured headline writers’ imaginations.

Regular Articles

Listings (sponsored)

07 Market in Focus: Aberdeen

88 UK

WELCOME TO RUSSIA

Aberdeen is Scotland’s third most popular city home to an estimated 228,990 residents.

84 Should I Move to?

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Situated in the North of Russia, at the Gulf of Finland on the Baltic Sea, St. Petersburg has become known for being one of the most culturally rich cities on the planet.

The home of the Industrial Revolution, the UK has long been established as a major commercial centre, benefiting from strong trade links with companies on every continent. With a long history in international cooperation, the country is an attractive place for investors both foreign and domestic.

Knight Knox have sold thousands of properties. We have experts on the ground that can help to find your perfect property. Why purchase with anybody else?

ISSUE 007 GLOBAL

PROPERTY NO. SCENE ISSUE 007

EDITOR’S NOTE

The Number One Buy-to-Let Magazine | www.globalpropertyscene.com

This issue: Should I move to St. Petersburg? | A guide to classic car investment | Should you rent or buy?

Sky City - China’s flatpack skyscraper | The story behind HS2

FOCUS ON : ABERDEEN

FROM RUSSIA WITH LOVE

Many keen investors are acting with hesitation in the current property climate.

As some markets enjoy burgeoning growth, others are feeling the strain of decline. With this in mind we’re here to help you, the investor, make the best decisions.

In this edition we’re focusing on Aberdeen, a city where residents have the second highest weekly earnings in the UK, with the £625 per week many earn being only behind London wages. As the amount of available capital increases the markets demand for property has grown significantly. But the recent oil crash has left many investors uncertain going forward.

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Credits Individual Samantha Jones, Hannah Wilde, Rachel Sharman, Christine Schulz, Richard Ellis, Alistair McGovern, Suzanne Todd, Callum Whiteley, John Power, Martin Copeland, Sue Hedges, Dee Barber, Mark Roberts, Michael Vickers Commercial Knight Knox, X1 Developments, Fortis Developments, Forshaw Land & Property Group, Porsche, Buy Association, INTUS Lettings, Gold Key Media , Shove Media, Shutterstock, Property Investor, Red Spot Media Solutions, CBRE Russia, CODA Studios Ltd

Currently experiencing a bad press on the global stage, Russia is an intriguing market. After Stalin’s death in 1953 the time that followed is generally considered as a time of moderate social calm as well as economic liberalization for Russia.

Potentially a very lucrative market for the seasoned investor, new land legislation has still not been applied thoroughly.

In our section on Russia we guide you through the potential pitfalls.

Everyone is looking for the lowest risk investments. Those of us who managed to hang onto some capital after 2008’s recession no longer feel security in the banks, as protected pots are currrently capped at lower levels. One industry is showing good potential, classic cars. In this edition we give a brief guide into the industry, and earmark some future classics.

And finally we try to answer a common question, is it better to rent or buy a house? Whatever your reason may be, GPS will examine why in some parts of the world there is a distinct rental culture, and what affect this has on the housing market at large.

Until next time, enjoy.

Editor-in-chief Michael Smith

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MARKET IN FOCUS Aberdeen is a city steeped in history despite the modernity of its current prime industry Words : Rachel Sharman | View : Paula Fisher

The UK has seen an extremely turbulent property market over the past ten years as crashes and rises have shaken it up. Recently, it’s the London headlines which have dominated the news. The end of 2013 and 2014 in particular saw house prices break all sorts of records there as they continued to grow and grow. Then, as a result of the London market being so extreme, the housing market around the capital witnessed what many called a ‘ripple’ effect. Firstly, people who had lived, rented and planned to buy in the city centre began to choose the outer metropolitan region for its lower prices. Then, as costs inflated there, residents began to spread out throughout local counties and the whole of the South East saw increased prices. Finally, as even these areas began to become less affordable, those who once were Londoners became Oxonians, Cantabrigians and Bristolians, as they moved to close-ish cities and began to commute.

In comparison, the rest of the country has seen a more sluggish recovery from the recession. Some big cities are only just regaining the prices they were seeing in 2006-07. Extreme examples highlighted by the Nationwide Quarter 1 2015 report include the North Wales and Western Northern Ireland regions which actually saw a negative percentage

change (-1% and -4%) over the decade, proving that the country’s housing market story has not been a clear road to recovery for everyone. All together, the fares of the UK property markets are much reported stories, however, you would be wrong to believe that London is the only city seeing fantastic success.

Nationwide, the world’s largest building society, reported that no sub region outside of the South East saw over 50% growth from Q1 2005 - Q1 2015, with one single exception of Aberdeen and it’s local area.

Aberdeenshire and Moray, two neighbouring Highland regions, saw 78% growth over the period, almost double Scotland’s third most successful region (Dundee and Angus). However, it is Aberdeen city which saw the phenomenal growth of 99% over the past 10 years, surpassing the much reported price increases of London boroughs such as Tower Hamlets and Lewisham have seen.

Aberdeen is Scotland’s third most popular city home to an estimated 228,990 residents. It is located on the North Eastern coast, over 100 miles away from Edinburgh, and holds the unfortunate title of being the coldest

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city in the UK (although it’s still warmer than you may think. Despite having latitude a few degrees higher than Moscow’s, it’s surprisingly mild).

Cold and isolated conditions do not a property hotspot make. So it helps that Aberdeen has often been considered a beautiful city architecture-wise. Many of the city’s buildings were built out of locally sourced granite, a strong and well-wearing material, which has secured the city the nickname of the Granite City. Plus, when Aberdeen gets one of its rare sunny days the stone begins to sparkle, giving the city a second and more romantic nickname of the Silver City.

Unfortunately, textile production ceased in 2004 and only a year later the last of the paper mills closed. The city’s harbour is still thriving though and is now the largest in northern Scotland, an incredible feat given the business will soon be celebrating its 900th birthday. It was founded in 1136 and is therefore often touted as Britain’s oldest business. These days the harbour serves ferries en-route to Orkney and Shetland islands.

You’d be wrong to think Aberdeen’s success started in 1136 though.

Aberdeen has been a human settlement for a phenomenal 8,000 years.

It is home to the fifth oldest university in the English speaking world- The However, perhaps Aberdeen’s most relevant nickname, especially in terms University of Aberdeen, which was founded in 1495. Crathes Castle, a of explaining the property market’s success, is that of the Oil Capital of nearby, enchanting 16th century castle, also adds to the ancient feel of the Europe. The 1980’s saw the discovery of a number of North Sea oil fields city. Ultimately, Aberdeen is a city steeped in history despite the modernity off the coast of Scotland. Aberdeen, being a well-established city close by, of its current prime industry. quickly became the key base for many companies looking to profit from the lucrative business, and ever since the city has become These days, Aberdeen has a high student population of approximately intrinsically linked with the oil industry. So much so, that in 2012 HSBC 30,000, made up of those both at the University of Aberdeen and Robert called Aberdeen a leading business hub and as one of 8 ‘super cities’ Gordon University, the larger of the two. It is also the part time home of which spearhead the UK’s economy, despite it only being 37th largest in many oil workers who arrive on Monday and leave on the Friday with terms of population. permanent residences elsewhere. Both of which make Aberdeen a very rent orientated city. CityLets, Scotland’s premium letting property portal, This ancient city, however, has long thrived without the profits oil brings. noted how Aberdeen is the most expensive Scottish city to rent in and the The town was traditionally linked with paper making, textile mills, ship only one where average rents exceed £1,000 per month (£1043) in building and fishing. Some areas within the city, such as the medieval comparison to a Scottish average of £762 and Edinburgh’s £923. fishing village Footdee, still retain their original architecture.

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Aberdeen Docks, Scotland

For those looking to buy in the Granite City, one square metre of property has recently been reported as costing £2,281, much more than the Scottish average of £1,490. Interestingly though, the average house price in Aberdeen is not the most expensive in Scotland, where Edinburgh pips it to the post. The average cost of a home in Edinburgh is £266,281, the average cost in Aberdeenshire is £244,463 and finally, the average cost for the city of Aberdeen is £243,415. Although there are likely to be many reasons for the difference in prices between the cities perhaps the shifting nature of the oil industry does encourage people to rent, for the fluidity it offers, rather than buy.

Ultimately, Aberdeen is a city based around the oil and gas industries.

Although there are other reasons people are attracted to the city, including the universities, its reputation has been gained because it is one of the most important oil and gas cities on the continent despite being a relatively small city. One example of why it is the Oil Capital of Europe is the SPE Offshore Europe Convention and Exhibition. Every two years Aberdeen is the host city of this oil and gas conference which attracts over 60,000 professionals and 1,500 exhibitors to the city and is the largest of its kind outside of North America. This also has the added advantage to the local property market as rents for that week are suddenly massively inflated to profit from the demand.

Even when the city isn’t flooded with oil professionals, it is still home to 1,500 oil companies which employ 40,000 people. This means that not

only is Aberdeen well below the Scottish average unemployment rates (in fact it has the 6th best employment rate for any UK city), but also the specialist nature of the industry gives a massive pay out to workers.

Aberdeen residents have the second highest weekly earnings in the UK, with the £625 per week many earn being only behind London wages. In addition to these stats, the Centre for Cities 2015 Outlook has noted a number of ways that Aberdeen has proven itself to be a great city against the rest of the UK: > 6th best city for number of business start-ups > 6th highest employment rate in the country > 5th in terms of residents with high qualifications A lot of these are thanks to the thriving industry which provides so much money and interest in the city. However, the start of the year has seen a disturbance in the success formula that makes Aberdeen tick- there has been an oil crisis.

‘Crisis’ sounds dramatic and intimidating. It sounds like the oil industries have dried up and the workers are roaming the streets looking for jobs. In fact, the essence of the crisis (which reached its peak in early 2015) is that there is currently an excess of oil from the US yet other worldwide producers are reacting by not doing anything different. According to industry professional Mark Lawrenson, “Supply is simply outstripping demand at the moment and nobody wants to be the one to reduce output

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as then they would lose their market share.”

From 2010 until the crisis began to hit in mid-2014, the price of oil was pretty stable at around £70 per barrel, a figure which then suddenly dropped to below £31 per barrel. There are a whole host of reasons for this fall. The US has been producing vast amounts of oil for a few years now as companies sprung up to make the most of the high purchasing prices, however, as global conflicts (Libya’s civil war, Iraq being threatened by ISIS, Iran having Europe and the US breathing down its neck) stopped other oil nations from producing an estimated 3 million barrels per day, the US extra oil was necessary to meet demand. However, very quickly, the demand suddenly flat, and the world was left with such a large surplus and the prices crashed. Yet no one wants to stop production.

After all, it’s no secret that some of the oil nations are wealthy beyond belief and for them continuing to operate, even if it is at a loss, is better than losing their foot in the market. However, countries such as Russia and Venezuela (which don’t have so much in the bank) rely on the oil industry’s profits, which are no longer rolling in. Aberdeen falls somewhere in the middle, although the UK is not reliant on the oil industry, Lawrenson notes how, “the North Sea fields are mature and expensive to work on,” meaning that it’s difficult to continue production at a loss.

Interestingly, what is described as a crisis in some corners of the world is also touted as an advantage in others. The US is obviously happy with the market, and in countries where they are unable to produce their own oil, the lower prices are definitely welcome news. For the most part the UK is one of these nations happy with the reduced price of oil. The cost of fuel affects many households, so the lower it is, the more people save.

Aberdeen’s reaction, understandably, is less enthusiastic. When a city is so dependent on a single industry and it begins to slow down, other aspects to the city begin to suffer, including the property market. Many reports released at the beginning of 2015 began to forecast a difficult road ahead for the selling and lettings markets in the city.

For example, a report in February by Moore Stephens, a nationwide accountancy firm, noted how: “The oil price crash could drag down the housing market in Aberdeen. If mortgage failures lead to a drop in house prices a considerable number of people could suddenly find themselves in negative equity.

“Disposable incomes have risen more in Aberdeen over the past five years than anywhere else in the UK, thanks to a combination of low interest rates and high oil prices, but this may not be the case for much longer. If the oil price is this low when interest rates eventually start to rise the outlook for the Aberdeen property market could get considerably worse.”

“This will be unwelcome news for mortgage lenders too. The fall in the oil price came as a surprise to most people, but banks will not want to be linked to risky property loans, whatever the underlying cause.”

Also, it was suggested that if the oil and gas professionals who don’t live in, but commute into, the city began to be laid off, the rental market would suffer from a lack of demand. The effects of which have since been noted

by Lettingstats, “All eyes have been on the Aberdeen economy since the dramatic collapse in oil prices and it is fair to say that the rental market does seem to have adjusted accordingly.”

“Advertised rental volumes are always lower during the winter however the average rent for a 3 bed property was £1,216, down 7.2% on same period a year ago. Two bed properties were below the thousand mark at £972, down 1.6% on the year. Time will tell if these are temporary or part of a more significant re-adjustment of the Aberdeen housing market.”

It is not just the drop in oil prices which have affected the Aberdeen property market. Though the whole of the Scotland property market went through a shift at the beginning of April when Stamp Duty was dropped in favour of a Scottish only ‘Land and Buildings Transaction Tax’. Although the two systems are remarkably similar, the bandings are slightly different.

In Scotland, you pay 10% on properties worth £325,000 - £750,000 and 12% for those worth more than £750,000, whereas you only have to pay these premium percentages for properties worth £925,000 - £1,500,000 and £1,500,000+ for the rest of the UK. Basically, the dearer properties in Scotland cost significantly more than their UK equivalents. Not good news for a city which was once reported to have the second highest amount of

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Crathes Castle, Aberdeen

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millionaires per postcode in the UK. Unsurprisingly, this produced a frantic March as people tried to buy properties before the new tax came in, and since the changeover date, has seen a significant property market deceleration. It has also left the numerous professional reports which measure the market’s performance month-on-month showing a record breaking rise in March (as prices soared by a massive £16,000) and therefore exaggerated fall in May, when it appeared the 2.1% (£4,000) fall in prices was the worst Scotland had seen in six years.

David Strang Steel, national partner for Strutt & Parker, summed up the sentiment about Aberdeen’s property market: “From this time last year and up until around Christmas, things were really, really, good. Then oil went

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to about $45 (£28.68) a barrel and the market cooled off enormously. A combination of the oil price and stamp duty changes, which has had a significant effect on anything over £500,000, means the market has frozen.”

Altogether people don’t exactly know what will happen to the oil market in Aberdeen, whether it’ll improve in the coming months, or if it’ll ever change at all. Therefore, people don’t know what will happen to the property market either.

Both Strutt & Parker partner David Strang Steel and industry professional Mark Lawrenson noted how the city does not always follow typical trends.

According to Strang Steel, “Aberdeen has always been counter-cyclical: all through the recession we had a fantastic run but now there is a lot of job

Marischal College, Aberdeen

insecurity about and people don’t want to invest in big ticket items.” Using an opposing metaphor yet with a similar message Mark Lawrenson stated, “A problem with the industry is that it’s cyclical, so when times are bad people are laid off and move on to other, more stable industries. When times are good again though companies offer huge salaries to attract these people back.”

However, it is also important to remember that Aberdeen remains the Granite City, oil workers or not. It is still a unique, historical, beautiful, university city which can learn to thrive even if the oil and gas industry falls into disarray. Perhaps the oil crisis means that the city will never see house price growth of 99% in a decade again, or perhaps it simply will.

How the city proceeds over the coming months, and years, remains to be seen.

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RENT OR BUY? Here in the UK we aspire to be home owners, so why does the rest of Europe feel differently?

Words : Hannah Wilde | View : S.Borisov

Homeownership versus renting; mortgage payments versus tenancy agreements: this has been the decision facing most adults seeking independent living for decades, with a fierce debate raging around whether owning your own home is actually better than living in the private rental sector. But it could be for the first time that this argument is becoming redundant—regardless of the practicalities and financial repercussions of owning your own home, it seems that for the first time most of Europe are turning their backs on homeownership in favour of rental tenancies. However, the question has to be asked whether this a decision made through choice, circumstance or the rising unaffordability of homes that is ravaging the current European property market.

There has been great debate about whether buying a house is more affordable than renting, but it seems that most of Europe either have declining aspirations for homeownership or that the rental market is so strong in a particular country that it diminishes the need to own one’s own home. Whatever the reason may be, Global Property Scene will examine why there is a distinct rental culture in Europe, and what affect this has on the housing market at large.

Of course, it does have to be said that all 51 countries in Europe are completely independent entities and governed by differing rules, regulations and circumstance, but evidence has been brought to light in recent years that the continent as a whole is leaning more in favour of renting than buying. Therefore, this poses the question: are all Europeans

happy to rent?

Germany Let’s begin with Germany, the country with the greatest proportion of home-renters in Europe. Despite having the largest populace in the EU at a staggering 80.2 million people, this country has among the lowest homeownership rate in the developed world (43%). To put this scale of renting into perspective, Germany’s capital city of Berlin alone sees a whopping 90% of its residents renting their home. What is perhaps more surprising however is that its residents don’t seem to actively aspire to homeownership, and are instead content to continue renting. This can be attributed to two main factors: the general population’s attitude to renting, and the financial conditions that lead to (and actively encourage) prolonged renting in Germany.

In an illuminating Channel 4 News article about Europe’s renting culture, a local estate agent commented that Germany’s attitude to renting is very different to that found in the UK: “Renting in Berlin at least is really cheap, and many more people rent than buy”. Data from OECD further reiterates this popularized opinion, finding that more than 93% of German respondents surveyed said that they are satisfied with their current housing situation (both rented and owned).

Completely contrary to the property market in the UK, Germany is seen to

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actively encourage renting. Regulations are rigorously enforced in Germany’s private rental market in favour of tenants, all of whom are protected by a barrage of laws. As well as inciting a cap on rents (landlords are unable to increase rent by more than 15% over a three-year period), evictions are virtually unheard of in the German rental landscape.

Furthermore, most housing contracts are indefinite and relatively unbreakable as long as rents are paid on time, which has led to most renters viewing this as a secure and long-term tenure. When coupled with the general lack of landlord-enforced rules in the German PRS (like the fact that tenants are generally allowed to renovate the property themselves), it is unsurprising that tenants in Germany on average spend between 3-7 years in one home, much longer than most other European countries.

Given the incredibly beneficial rental landscape in Germany which encourages rather than penalizes its renters, it is really no surprise that most people actively choose to rent than buy. However, the gulf between homeownership and renting is further expanded by the fact that the German homebuyer market is notoriously hard to penetrate. Despite the fact that house prices in the country have been known to reach at least 16% below their long-run average relative to incomes, there is a country-wide reluctance to offer mortgages to potential homeowners, particularly firsttime buyers.

However, such is the current housing market that even if you are lucky enough to procure a favourable mortgage in the era of reluctant lending, the financial implications of homeownership do not end here: German

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mortgage lenders generally demand at least a 20-40% deposit to secure a home. When mixed with a chronic undersupply of available housing in most major German cities, these factors certainly play a huge part making the first steps onto the property ladder incredibly difficult for most. In addition, the tax system in Germany does not seem to support homeownership, shown in the fact that the country doesn’t even allow homeowners to deduct mortgage interest payments from their taxes.

Although it’s not all doom and gloom for potential German house-buyers—new houses in Germany are statistically more than 40% larger than homes in Britain, measuring a huge 109.2m2 compared to a meagre 76m2—this is not enough to entice people back into homeownership. Naturally, most would still prefer to rent rather than buy their own homes, given the incredibly favourable rental landscape all around the country. As one enthused German renter surmises: “Around half of Germany rents, and there isn’t this UK obsession with getting on the property ladder”, proving that Germans for the most part are well and truly happy to live in the private rental sector.

France Across Germany’s western border in the neighbouring country of France, the rental landscape is very similar, although for very different reasons.

Despite former President Nicolas Sarkozy’s declaration to turn France

Eiffel Tower, Paris

into a nation of homeowners, the current reality could not be more different. Most recent data signifies that France has an owner-occupier rate of 64.3%, which means that over 1 in every 3 people in France are forced into the private rental sector. However, for those looking for either rented accommodation or an owned home, it seems like the current housing climate in France has them caught between a rock and a hard place—both rents and house prices are on the rise.

It has recently come to light that average asking prices for properties in France have reached an unprecedented level, having just broken an eye-watering €8,000 per square metre mark for the first time. This means that, based on industry statistics that show that France’s average residential floor space is 43sqm, the average house price in France comes in at around €344,000. The landscape does not fare much better for renters, either. New data from Global Property Guide has indicated that, in the capital’s city of Paris in particular, rents can top a staggering €3,938 per month on average.

However, it seems like the French contingent are living by their age-old idiom ‘que sera sera’, and are making the best of an ever-more expensive housing market. Maintaining an optimistic outlook, a Parisian renter interviewed by Channel 4 News commends the freedom extended to tenants in France’s private rental sector: “[Tenants] can paint their wall or hang paintings without asking for any authorisation from the landlord. Landlords don’t have a key for your flat—it is so private that I cannot imagine my landlord coming in without letting me know”.

However, it does have to be said that tenants, particularly in busy cities like Paris, do pay for this privilege: “To rent, you have to earn a salary three times more than the rent. [Likewise] to buy, you have to have in your bank account a minimum of 33% of the total price of the flat”.

Aside from the growing unaffordability issue, another difficulty for French renters is that (unlike Germany) French law is incredibly protective of a property’s leaseholder rather than its tenant. As a result, owners are more stringent, demanding more from their tenants— whether more affordability checks, more references, or a larger deposit to secure the property. Despite this, it seems that there has and will always be an influx of tenants competing for each available property on the French rental market, in a supply-demand imbalance not too dissimilar to the one that is currently dominating property markets all over Europe.

Sweden Next to be considered is a slightly less publicised market in Sweden.

Situated over 2,000 miles away from France, Sweden has a relatively mature property market facing very similar problems as the housing market in France. Similarities include a comparable rate of homeownership (60-70%), the fact that both nations experienced historical credit-fuelled property price rises in the past, and that they are still dominated by capital cities with overheated property markets, where house prices have spiralled well above the rest of the country.

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New Town Hall, Munich

However, this is where the similarities end—particularly in the private rental sector, Swedish property is owned in large numbers by commercial landlords rather than the army of small landlords with one or two properties that frequent the wider European buy-to-let market.

As seen in all previously-mentioned countries, Sweden is no different in its attitude to renting—the majority of people who rent, do so for a prolonged period. Like Germany and France, Swedish tenants are increasingly having the freedom to decorate their rented property, which invariably leads to happy tenants generally staying in their rented homes for longer.

However, unlike the aforementioned counterparts, Sweden maintains a rental culture that does not require tenant deposits or expensive reference checks—instead, the country prefers to allow landlords access to a Government register to check a potential tenant’s past history. In a system not too dissimilar to a UK credit check, unpaid rent is recorded on this Governmental register which landlords can see, and counts against them when the landlord is vetting a potential new tenant. This unique referencing process aptly lends itself to Sweden’s landscape of an open and honest communication channel between landlord and tenant, one that is built on mutual trust and respect. Maintaining a stable tenant-landlord relationship is the key for Swedish landlords, and forms the basis of retaining dependable returns.

However, what works against landlords is the fact that the Swedish Government is stringent in its preservation of what they consider to be fair rent—not only are rent rises for existing tenants meticulously controlled, but the basis of how much a landlord can charge is also scrutinised and controlled too. Local municipalities dictate the amount that landlords can charge their tenants, creating a ballpark market rent based on the size and quality of the property (after which landlord cannot exceed this figure by more than 5%). On top of this, annual rental rises are limited to no more than the rate of inflation, which historically has hovered between 2-3%.

So not only do Swedish tenants benefit from regulations that work in their favour, they are also lucky enough to enjoy larger and better-quality housing, too. Nigel Evans, co-founder and director of European property company Evanridge Properties, has applauded the rental market in Sweden: “The standard of rental properties in Sweden is generally higher because that’s what tenants demand. It is as normal for company directors to rent their homes as it is for the employees who work for them”.

Not only does this outline how popular the rental tenure is in Sweden, but also commends the high quality of the stock on offer.

However, like every other market, the Swedish market is by no means infallible. Over the years, the strictly-controlled rents enjoyed by tenants in Sweden have been outstripped by rises in building costs, so there is now little incentive for house-builders to build new homes. This in turn has led to an acute shortage of available homes, which mirrors the precarious housing situation facing almost every other major country in Europe at the moment. This has had a knock-on effect, leading to higher demand for a smaller amount of available stock—Sweden, it seems, is yet another European country stuck in what many have dubbed ‘the rental revolution’ but, like Germany, Swedish tenants don’t seem to mind favouring renting over homeownership.

The UK Now we have seen examples of European countries with a positive attitude to renting, let’s now consider the alternative—the UK, perhaps the country with the most complex and advanced property market in Europe.

The UK is currently at the forefront of house price and rent growth in Europe, topping the tables for exponential price growth in both sectors.

Naturally, this has fuelled what many have called an ‘unaffordability crisis’, whereby many people between the ages of 18-35 are struggling with the growing costs involved with independent living. In what is perhaps the worst price crisis in Europe, a staggering 1 in 3 people under the age of 35 are currently living in their familial home because of rising housing costs.

However, for those remaining 67% of young Britons making the leap towards independent living, housing costs generally take up a large share of their budget, with this accounting for the largest single expenditure for many households. But Britons are increasingly suffering from unaffordability, with the average tenant spending a huge 46% of their income on their accommodation. Shockingly, this is even worse in London, with most people spending over three-quarters of their income on housing because of the spiralling costs.

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Old Town, Stockholm

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Whilst mortgage repayments for homeowners are generally cheaper than the living expenses incurred by their rental counterparts, most homeowners have faced a difficult journey to get their foot on the property ladder. The UK has one of the most notoriously expensive housing markets in Europe and it is increasingly hard to penetrate, particularly for first-time buyers in the wake of escalating prices and growing unaffordability. For example, modern house buyers in the UK now have to wrestle with enormous up-front deposits to secure a home, rising house prices and increasingly difficult lending conditions by leading banks and building societies, as well as ancillary costs involved with homeownership that too are ever-growing.

Homeowners now look to pay an average deposit of up to 30% of the property’s value—with an average UK deposit now reaching an eye-watering figure of £72,302 as of June 2015. This, when coupled with lenders’ increasing reluctance to offer mortgages and growing associated costs (including solicitors’ fees, stamp duty and conveyancing fees among others), has led to a massive decline in homeownership, particularly for younger people with no available equity.

However, whilst this increasingly expensive landscape has made homeownership a mere pipe-dream for many, this hasn’t managed to alter the aspirations of Britons—the country still has a stringent attitude surrounding owner-occupation, with most aspiring to homeownership in the future. Despite this though, the market is pessimistic (or at least realistic at

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best): a huge 40% the younger generation aged between 25-34 want to own their own home, but don’t think this will be possible. A spokesperson from Ocean Finance perfectly summed up the catch-22 situation that the UK housing market is currently facing, surmising: “While four in ten people still say they’d like to own a property one day, they already seem resigned to not being able to do so.”

Therefore, if Britons cannot get onto the property ladder (through unaffordability rather than through choice), their only other option lies in the private rental sector. Whilst it is true that this sector offers flexibility, cheaper up-front deposits and the responsibility of maintenance and upkeep in the hands of the landlord rather than the tenant, most Britons are discontent with their lot. Because of the escalating house prices, many tenants are finding themselves paying more for smaller properties.

To add insult to injury, the UK currently holds the crown for the most expensive rents in Europe, with tenants paying on average a huge €902 per month—a cost that is almost double the amount of their continental counterparts, where the average is a moderate €481.

This further widens the gulf between renting and homeownership in the UK—while rents are rising at an exponential rate in the private rental sector, many tenants aspiring to homeownership can no longer afford to save for a deposit to buy their own house because of the growing costs of renting. So it seems like, at least for the time being, the UK is stuck in a rut. That said, it seems that the private rental sector (despite commanding sky-high rents) is the way to go for many in Britain, although most still

The Gherkin, London

aspire to homeownership one day—as they say, the Englishman’s home is his castle.

How does this ‘rental revolution’ translate outside of Europe?

It seems like having to rent rather than owning a house is somewhat of a worldwide pandemic, especially in popular cities like New York where, like London, prices are spiralling at an unparalleled rate. Whilst there are some exceptions to this rule (most notably Romania, who surprisingly has the highest homeownership rate in the world at a staggering 95.6%), the majority of the world are embedded in the rental revolution.

Most major cities in Europe and the wider world seem to all be suffering the same problems—rising house prices, a lack of available mortgage lending, rising rents and a chronic lack of house-building. However, the latter is perhaps the most pressing issue, as this is what fuels the ever-growing supply-demand imbalance and creates a type of ‘doom-loop’: (a cyclical problem in the market that keeps repeating itself, and shows no sign of ending in the coming months and years).

Whilst this is great news for landlords, who are ultimately the ones benefitting from skyrocketing house prices, growing tenant demand and soaring rents, it seems that for most tenants, they are either content to continue renting (like those in Germany, France and Sweden), or have resigned themselves to the inevitability of renting, like those in Britain.

The fact is: homeownership is becoming harder and harder to attain, not just in Europe but all over the globe.

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WELCOME TO RUSSIA As tensions grow over the Crimean Peninsula, the western world continues to ramp up strict sanctions. With this in mind, Global Property Scene gives you a guide to life in the USSR

Words : Christine Schulz | View : Andrey Bayda

Russia – or otherwise known as the Russian Federation – is one of the world’s leading superpowers. It covers an impressive 12.5% of the earth’s overall land area, making it the biggest country in the world. Here a population of 144 million people are spread over 17 million square kilometres, which are split into 9 different time zones.

Just a few decades ago Russia functioned as the leader of the former Soviet Union, the world’s largest ever state covering one sixth of the earth’s land surface. The USSR was a single party state governed by the communists and heavily influenced by Lenin’s interpretation of the Marxist ideology. During these years, the country’s government and its economy were highly centralised, to the degree that any kind of political opposition was fully suppressed – particularly under the reign of Joseph Stalin, a period of history characterised by hardship and tight regime.

After Stalin’s death in 1953 a period of time followed that is generally considered as a time of moderate social as well as economic liberalisation for Russia. At this stage, the Soviet Union – being in a head-to-head race with its US counterpart – saw the happenings of significant technological achievements such as the successful launch of the first ever satellite Sputnik and the world’s first human space flight with cosmonaut Yuri Gagarin. After the Cuban Missile Crisis in 1962 however, the tension between the two leading superpowers escalated and resulted in what is

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commonly referred to as the Cold War between the Russian Empire and the USA. It was not until the late 1980s that this pressure began to slowly decrease, thanks to the work of Soviet leader Mikhail Gorbachev and the reforms from his glasnost and perestroika movement. After his resignation in December 1991, the increasingly democratised sovereign states finally dissolved into Post-Soviet states.

One of the main focuses of the Russian government after the collapse of the Soviet Union was the country’s housing market. All the residents of multi-apartment blocks were given the right to privatise their homes. This bold move led to Russia as a country having one of the highest levels of homeownership in the world, with more than 75% of the country’s population owning a property, according to the European Mortgage Federation. This reform is often seen as one of the biggest and most significant transfers of wealth in the history of modern society.

As this policy came into effect, it brought up a lot of issues for newly-made landlords: when the new owners took over their properties, they were in the belief that they would thus become responsible for the management and maintenance of their new homes. However, this was not the case, as only a disappointing 1% of the total housing stock was

Patriarch Bridge and Cathedral, Moscow

managed by these new homeowners. The issues and uncertainty between owning and managing a property caused doubts about what the powers of regional or municipal authorities really were, particularly in regards to the eviction of tenants.

In the following years then up to 2001 it used to be the norm for both nationals and expats to not be able to fully own a property, let alone a piece of land, as land equals power in the mind of Russian bureaucrats.

This was the case at least until the introduction of the Land Code in 2001, a legislation that intended to clear up the issue of landownership. Up until then, the right to own a property did not equal the right to use a property, meaning that foreign investment activity remained scarce in the Russian Federation. To some extent this continues to be the case even in this day in age, as the new legislation has still not been applied thoroughly, meaning that investors still struggle to fully penetrate the Russian housing market, particularly in the capital city of Moscow.

Whilst these extraordinarily high homeownership figures paint a positive picture of the Russian property market, the truth is that many of these homeowners ended up living in the wrong types of homes: many old and often poor pensioners who received their property during the period of housing stock privatisation now find themselves owning expensive apartments, whilst the newly rich ended up living in lower quality

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accommodation at the edges of Russian city centres. This caused an improper distribution of wealth within Russian cities with demand for city centre housing being very high.

However, between 2000 and 2007, during Vladimir Putin’s first term of presidency, Russia experienced an immense housing boom, during which primary markets such as Moscow and St. Petersburg more than tripled, and secondary market prices exploded by a remarkable 436%. During this period, which was marked by economic growth, real wages and incomes increased by more than 300% and unemployment as well as poverty fell by more than half. Generally, the nine years between 1999 -2008 saw the Russian economy flourish hugely, so much so that the country’s GDP increased by 72%. This economic growth was to a large extent fuelled by the 2000s commodities boom, ever-growing oil prices (Russia’s main export) and cautious economic as well as fiscal policies.

The global financial crisis in 2007/08 caused projects in the country to be delayed, as capital flow began to dry up and uncertainty became the norm. It wasn’t until early 2014 though, with the Crimea crisis coming into full effect that the Russian investment market went into shock: After the military intervention from Russia into Crimea in February 2014, an array of countries, ranging from the US to the EU, imposed sanctions against individuals, businesses and officials from Russia and the Ukraine alike.

Kremlin Cathedral, Moscow

Russia took the same actions vice versa, banning the likes of food imports from the US, EU and some others, leading to the collapse of Russia’s currency, the Rouble (it halved in value against both the US Dollar and the Euro). But this is not all: adding to the pressure of the country’s rapidly stagnating economy was the sharp drop in oil prices, as crude oil (which experienced a decline of over 50% during the time of the civil unrest in Crimea) is one of Russia’s main export goods.

This ongoing Russian financial turmoil (together with the issues in Crimea) has led investors into a state of near panic. The fact that the value of the Rouble drastically decreased against the dollar meant that the high-end property market found itself in trouble, as rent in prime markets are usually calculated in US dollars. This also led to hard times for the developers of office projects, as these were also to a large extent financed in the American currency. Circumstances got so bad that to some degree, developers began to ditch their projects once the market went into contraction resulting in empty or half-finished buildings and a market slump of 15-20%.

Interestingly, the same applied to Russian investors into foreign markets.

Russian investors are known for their tendency to invest heavily into overseas property markets such as London: It is estimated that 8.5% of all London properties, worth above the £2m mark, were bought by Russians

between March 2012 and March 2013. However, with such severe troubles such as sanctions and restrictions (due to the ongoing geopolitical situation) facing Russian investors, it is unsuprising.

What is remarkable is that the year before the Crimea crisis in 2014, Russia built more new apartments than since the end of the Soviet Union, with 912,000 new flats brought to market. This trend seems set to continue, as more recent figures by Russian online news website Gazeta.ru showed that 295,000 new apartments entered the market in the first quarter of 2015 alone, representing an increase of 28.4% compared to the same time the previous year.

Furthermore, a major survey of contractors carried out by RIHD (Russian Institute of Housebuilding Development) found that house building is forecasted to have grow by as much as 5% during Q1 and Q2 2015. At the same time however the value of “second hand” stock fell by over 2% during the year leading up to the first quarter of 2014 – equalling about 8% when adjusted accordingly for inflation.

Nevertheless, times are changing: The first quarter in 2015 saw good news for investors into Russia. Oil prices as well as the Rouble are gradually stabilising (increase of 20% against the US Dollar), whilst geopolitical tensions are beginning to ease up marginally. All these points combined Castlefield, UK www.globalpropertyscene.com |

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St. Basil’s, Moscow

together are currently causing a substantial decline in country’s investment risk premium – making Russian property investments more attractive to overseas investors again.

According to the CBRE’s Russian Property Investment Report, investment volume has been up by 25.3% from the last quarter in 2014, and foreign investment reached a total of $341 million in Q1 2015.

Most notably the industrial office market sector (with a focus on retail space) is continuing to outperform all other asset classes by accounting for over three quarters of all investments made in Q1 2015.

Recently Russia has even been outperforming the rest of Europe, accounting for more than half of all shopping centre space brought to market in the second half of last year, climbing to an impressive overall total of more than 17.7 million square metres. With this number it has now overtaken France’s 17.66 million square metres and Britain’s 17.1 million square metres, to Europe’s top spot for retail space. In fact Russia’s capital Moscow is one of the most sought-after destinations for commercial property investments, allowing the business district in Moscow’s city centre to become the Russian answer to London’s famous Canary Wharf.

However, according to various reports and surveys the main focus of investment (the cities with the most potential, positioning themselves as most attractive to investors) lies within the two prime areas of Moscow and St. Petersburg. A study by Ernst & Young Global Limited showed that over half of the interviewed investors responded that their main investment focus will be on Moscow’s residential market, closely followed by 39% of respondents aiming at St. Petersburg. In this study it became clear that these two large, world renowned cities came out as winners, seeing as investors favoured them due to strong demand because of their population of over 1 million.

Take Moscow for instance: it is one of the world’s top ten most expensive cities to rent an apartment, after the likes of London, New York and Paris.

The mean price of a 120 square metre flat in Moscow lies at $5,158 per month, which could almost be considered moderate when compared to Londons $11,089.

In fact, Moscow’s prime market is so developed that if you were to have as much as one million euros, you would only be able to buy a relatively small apartment, as a standard flat with the size of 75 square metres costs approximately € 750,000 (or € 10,000 per every square metre). In terms of rental prices, Moscow apartments range between € 32 to € 41 per square metre. Investors in this market can expect rental yields of between 3.07% to 3.82%.

The prices in Russia’s second property hotspot of St. Petersburg can range as much €3,860 to €6,600 per square meter, with rent being as high as €18 to €20 per square metre. However, on average rental returns here tend to be a bit higher than in the capital itself, with investors gaining between 3.4% - 6.2%.

In conclusion, it is fair to say that yes, the Russian property market has as of recently undergone a time of turmoil, caused preliminarily by political sanctions and a depreciating currency. Given the history of the Russian Federation however, investors into this market are genuinely used to experiencing ever-changing market conditions, and are hence prepared accordingly for any possible fluctuations in the market.

It is important to highlight the fact that, whilst conditions are perhaps looking unfavourable for property investors, the market is set to make a swift recovery. Investment firm CBRE expects investment activity to continue growing in the second half of 2015, with a minimum investment volume set to reach the $2.5 billion mark.

Furthermore, various sources estimate that Russian house building is set for a bright future, as apartment blocks are going to get bigger and better, with every new development expected to have on average 222 apartments by 2017 (twice the current amount available). Additionally, it is estimated that average floor space will rise by as much as 90% to 13,913 square metres and 12 storeys per each building.

After a period of instability and restraint, the Russian market is currently undergoing a phase of revitalisation, which is preliminarily led by the superb performance of its retail office market. Nevertheless, construction in both commercial as well as residential real estate is beginning to pick up the pace, creating a highly positive outlook for Russia and its property market.

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Tsar Peter the Great memorial, Moscow

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A CITY IN THE SKY Set to be the tallest building in the world upon its completion, we take a look at the city within a city Words : Hannah Wilde | View : Broad Sustainable Building

China. A majestic country with a population of 1.3 billion, considered to be the world’s largest manufacturing country by output, and the frontrunner in the production of the world’s longest high-speed rail network, among other impressive feats.

Undeniably an economic powerhouse, China is seen to be one of the world’s most densely populated countries in terms of population and is home to an incredible fifteen mega-cities (defined as an individual city housing over 10 million people), by far the most of any other country in the world. To highlight the scale of such a populous country: Shanghai, the largest city in China, has a vast population of 23.9 million, larger than the entire population of Australia.

The sheer might of China is truly undeniable. As well as for the first time being hailed as the country with the world’s largest economy in 2014, China has garnered a formidable reputation in other sectors, too. Its infrastructure is truly unparalleled, with each major city home to some of the best infrastructural feats in the world. From skyscrapers and stunning architecture to bridges, railways and airports, China’s investment into infrastructure has always been impressive, but extensive investments into land, air and sea have truly cemented China at the forefront of all modern infrastructural innovations, allowing the city to thrive as never before.

To prove the sheer scale of China’s incredible infrastructural prowess, the country’s 93,000km of railway lines could loop around the entire world… twice. Furthermore, the creation of a third terminal at the Beijing Capital International Airport (at an eye-watering cost of $3.5bn) was an expansion project meticulously designed to meet the needs of increasing passenger

traffic. Since its completion, the new terminal has become the third-largest single-construction project in the world, and in 2014 helped the airport reach a pivotal milestone as the world’s second-busiest airport behind Hartsfield–Jackson Atlanta International Airport in the USA. Alongside its investments into land transport, the $8bn Shanghai Yangshan Deep Water Port project is set to handle the largest container ships in the world, further enhancing China’s competitiveness in the lucrative freight market. All of these inward investment projects were purposefully designed to enhance the country’s already far-advanced status as a global powerhouse in its own right.

But even more impressive is the China’s incredible focus on its construction. Over the total area of 2.7million square miles, its constantly evolving skyline is testament to the country’s incredible construction culture, which is firmly based around a foundation of constant improvement and innovation—building towers bigger and better than others that have come before.

Like most modern cities, China’s skyline is a striking mix of old and new—ancient Chinese structures rub shoulders with stunning modern skyscrapers that wouldn’t look out of place in New York’s Art Deco scene or in the vast modern metropolis that is London. Most impressively, China’s current tallest building, Shanghai Tower, is now world-famous—overlooking the Shanghai skyline, the tower tops out at an incredible 2,073ft and is the second-tallest building in the world, just 644ft shy of Dubai’s Burj Khalifa in the United Arab Emirates.

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General information Tip : 838 m (2,749 ft) Roof : 727 m (2,385 ft) Top floor : 733.5 m (2,406 ft) Observatory : 733.5 m (2,406 ft) Floor count : 202 (6 below ground) Cost : 짜9 billion 36 | www.globalpropertyscene.com

J220 Sky City Changsha, China

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Although Shanghai Tower is now the largest skyscraper in China, it is by no means the first of its kind. Its predecessor, Taipei 101, once reigned supreme as the world’s tallest skyscraper (1,671ft) from 2004 to 2010 until it was overtaken by the aforementioned Burj Khalifa. But far from being just an ordinary skyscraper, what made Taipei 101 even more impressive was not just its incredible stature, but also that the building had a surprisingly environmentally-friendly aspect too, recycling rain water to use for 30% of its water usage. Because of this, Taipei 101 soon became the benchmark for all modern Chinese developments, showing that an imposing structure can in fact go hand-in-hand with eco-friendliness. Such was its innovation that Taipei 101 has led to the creation of such marvels as the Diwang Tower (the second-highest building in the Shenzhen financial district) that can monitor subtle changes in coastal wind and air temperatures, which can potentially act an early warning system for impending typhoons and other weather incongruities heading towards Shenzhen. Thus, sustainable building has now become the new norm for the all of China’s newest structural additions.

As well as soaring skyscrapers, China is also at the forefront of innovative architecture, boasting some of the most advanced and inventive buildings in the world. One such incredible architectural feat is the New CCTV Tower, home of China Central Television. In an unprecedented move by the building’s renowned architects Rem Koolhaas (a Pritzker prizewinning Dutch architect named by Time Magazine in 2008 as one of the top 100 most influential people in the world) and multi-award-winner Ole Scheeren, the duo decided upon a design in the shape of two inverted and interconnected “L” shapes. The building sits at a respectable height of 790ft, with 52 floors above ground and a total area of 470,000sqm. Such is the magnitude of this building that it still remains a firm favourite on the Chinese skyline despite enduring extensive restoration after the building caught fire in February of 2009.

Also of note is the incredible Grand Lisboa, an awe-inspiring 856ft hotel that currently holds the title as the biggest building in Macau. Despite its impressive stature, what separates the Grand Lisboa from the rest is its beautiful architectural structure, inspired by the shape of a lotus flower. In a stunning example of postmodern architecture, the unique structure of the Grand Lisboa is based around a sphere (in which is housed an incredible eight-storey casino complex), and from this podium erupts a salient skyscraper that plays host to a 430-room luxury hotel. Upon its completion in 2008, this $375m structure became instantly reminiscent of the ostentatiousness of the famous Las Vegas strip, injecting a sense of glamour and grandiose to the Macau skyline. If this wasn’t eye-catching enough, the hotel then installed an intelligent LED lighting system, which combines outdoor lighting effects with the ability to display custom text messages, graphics, animations and videos. Therefore, it comes as no surprise that the Grand Lisboa hotel is the jewel in Macau’s crown— naturally, such a distinctive building has earned its place as one of the city’s (and even the country’s) most distinctive landmarks.

In addition, it is not just skyscrapers and feats of architectural brilliance that China excels at— the country also boasts pre-emptive plans for some daring structural innovations for the future that will seek to push the boundaries of construction and architecture to their absolute limits. One such structure is Changsha, a Dawang mountain resort hotel that will hover above a quarry and lake, whilst simultaneously sandwiched between two imposing cliffs. Upon its expected completion in 2016, Changsha will spread over 170m from end to end, and will feature such impressive amenities as an ‘entertainment ice world’, complete with indoor skiing, a water park and hanging gardens. Such innovations are an attempt to further improve China’s already incredible landscape, and if developments like Changsha do come to fruition, China’s status as one of the most architecturally advanced countries in the world certainly looks secure.

However, it’s not just what but HOW buildings are being constructed that is now capturing the attention of Chinese builders, who are now seeking to build bigger, better and more impressive structures than ever before.

Case in point: there is soon to be a new infrastructure in China that will be vying for its place in the history books—China’s brand-new skyscraper, Sky City. Set to be the tallest building in the world upon its completion, Sky City is the brainchild of innovative Chinese construction company Broad Sustainable Building (BSB), in conjunction with the architects behind Dubai’s Burj Khalifa, which is currently the world’s tallest building before China’s new arrival.

Sky City will proudly sit on the Changsha Hunan skyline at a dizzying height of 2,749ft and will contain 202 floors which will house residential

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apartments with capacity for over 17,000 people, a 1,000-capacity hotel, office spaces and shops. As if this wasn’t enough, a section of the building’s 13 million square foot is reserved for a hospital and five schools within its soon-to-be iconic walls. The outside of the building is equally impressive, hosting an amazing 17 helipads, 6 basketball courts, 10 tennis courts, and the preservation of some green space around the building for prosperity.

Leaving no stone unturned, the builders of Sky City have truly thought of everything—thanks to four-layered glass used for the building’s windows, the temperature within will be a constant of between 20 to 27c.

Furthermore, China is notorious as being one of the most polluted cities in the world, a fact that has not gone amiss by the architects who have innovatively developed specially-designed filters so that air in the building will be 20 times cleaner than the air outside. Even more incredibly, the building is already famed for being earthquake-resistant (designed to resist earthquakes of up to 9.0 on the Richter Scale), energy-saving, and built for the most part using recycled building materials.

With this in mind, the sheer scale of this creation is truly unrivalled.

Dubbed a “vertical city”, the Sky City project is estimated to cost in excess of $1.46 billion (which equates to $1,500 per square meter) and will require a huge 270,000 tons of steel to construct. To put this into perspective, Sky City will command over 3 times more steel than San Francisco’s iconic Golden Gate Bridge when construction begins.

As impressive as this building will undoubtedly be upon its completion, how does Sky City differ from other buildings, situated within a country where it is estimated that a new skyscraper is constructed every five days? Well the answer is simple, and equally incredible: The construction group behind Sky City, BSB, want to construct this architectural feat in just 90 days.

For many naysayers who think that this is a truly unthinkable task, BSB’s track record may just make you rethink. Their most impressive achievement to date has been their ‘Mini Sky City’ project, a 57-storey tower that was fully constructed in Central China in just 19 working days.

BSB’s vice president Xiao Changgeng confirmed that this incredible feat of engineering was accomplished by assembling three floors per day on the site, leading them to earn their entirely justifiable (if self-pronounced) title as ‘the world’s fastest builder’. Like its soon-to-be full-sized counterpart, Mini Sky City is incredibly impressive, boasting 19 atriums, 800 apartments, and office space accommodating over 4,000 workers.

Since its completion in February 2015, the downsized version of Sky City has garnered a huge amount of press attention and captured the imagination of an enthralled global audience. A time-lapse of the building’s swift construction appeared on video hosting website YouTube shortly after its completion and has since gained over 3 million views worldwide, with news outlets calling this innovative way of building “a construction revolution”.

When pressed, the delightfully innovative entrepreneur of Broad Sustainable Building (BSB) Zhang Yue is very open with how his business operates, likening the whole process to a life-sized game of Meccano whereby a whole building can be assembled from thousands of factory-made steel modules slotted together. Whilst some not-soimpressed news sources have pejoratively dubbed Mini Sky City a “flatpack skyscraper”, this kind of criticism doesn’t seem to faze Yue, who vehemently maintains that the process by which he builds his skyscrapers is fast, safe and relatively cost-effective to boot.

Mini Sky City, and designs for its full-sized counterpart, are by no means BSB’s first ventures into this utterly unique construction process—in 2010, the company made their first public prototype, a six-storey building built in a single day for the Shanghai Expo. Naturally, as the business has grown and expanded, so too have BSB’s impressive portfolio. Since the launch of their prototype, the company has since used the same formula to complete more than 30 buildings all in unthinkable timeframes, such as a 15-storey hotel in six days, a 30-storey hotel in just 15 days, and of course both the Mini and full-sized Sky City developments (with the former successfully completed earlier this year and the latter still stuck in its initial planning phase as of August 2015).

With an upwards trajectory of this magnitude in the space of just 5 years, it is unsurprising that BSB has grown in popularity and profits over the same period. Now known as one of China’s most profitable private firms,

Shanghai Tower, China

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owner Zhang Yue has since graced the pages of Forbes Magazine’s China Rich List, with an estimated fortune of $900m. But it is not just Yue’s ever-growing bank balance that makes him such a great asset for BSB—his enthusiasm for his projects is evident, with the company’s vice-president Juliet Jiang, who has been with the company for 20 years, reaffirming: “Chairman Zhang is the soul of the company”.

With such a creative and innovative CEO as Yue at the helm, the future looks incredibly bright for BSB. Naturally the next step for the company is a big one—to create its prized Sky City in just three months. Since the company have a track-record for creating buildings in the smallest possible time-frame, if anyone is likely achieve this incredible feat then its Broad Sustainable Building. The hope for this development is that Sky City will compete with some of the world’s biggest and best skyscrapers, and will be the tallest building in the world, at least until the completion of Dubai’s Kingdom Tower in Jeddah (set to complete in 2019).

Unfortunately though, not much is known about the expected completion date of Sky City. Whilst constructors are still adamant that the entire project can still be completed in it’s given 90-day timeframe, a definitive start date has not been given. Typically in the construction industry, plans are pushed back, construction inevitably gets delayed and last-minute stipulations are added to planning permission applications, all of which have led to a rather frustrating time for the company eager to create something that many say is impossible. So whether this development ever gets the go-ahead for the commencement of construction it appears impossible to say at this stage, but what is apparent is that if anyone can create the world’s tallest skyscraper in just three months, BSB are just the right people to make that dream a reality. And where better to place this incredible skyscraper than in China, the home of some of the best (and tallest) structures in the world?

So what’s next for the Chinese skyline?

Whether or not Sky City actually gets built, China still boasts an already vast skyline, and one that is always looking to grow, expand and develop on its past successes. In just 2014 alone, China played host to an impressive nine of the twenty largest buildings (accounting for 45%) built over that year. Furthermore, for the seventh consecutive year, 2014 saw China complete the most buildings over 200m (656ft) of any country in the world, successfully completing 58 in 12 months (representing a huge 60% of the global total). Arguably, the most famous Chinese creation of 2014 was The Wharf Times Square 1 in Wuxi which, like both its namesakes, broke records—upon its completion last year, The Wharf Times Square 1 became Asia’s tallest building at 1,112ft and the third-tallest building in the world to complete in 2014.

However, 2015 is proving to be an even more illustrious year for China—the country is once again expected to be a leading force in construction by a wide margin, and is well on track to complete an unprecedented 106 buildings over 200m over the coming year. This can come as no surprise though, since it has been estimated that China reinvests between 40-50% of their impressive GDP on infrastructure, so all evidence points towards a consistent and thriving construction sector in the future and beyond.

To fund these incredible feats of infrastructure, there is by no means a shortage of revenue in China, a country which has enjoyed an average economic growth rate of 10% for the past 3 decades. In addition, the country is home to some of the richest people in the world, with China’s 20 richest people having a combined NET worth of an incredible $145.1bn—a figure larger than the entire GDP of Hungary. Therefore, it is not surprising that China’s skyline reflects the richness and modernity of such a fast-moving and prosperous country.

It looks like China’s incredible growth is not likely to end any time soon, either. It is predicted that over the next 5 years China will invest heavily in expanding their urban infrastructure to meet the demands of the population, and that a huge five million new buildings will be erected in the country by 2025 (out of which 50,000 will be skyscrapers). Furthermore, with an economy expected to reach a staggering $123 trillion by 2040, China’s constant investment into infrastructure will be a benchmark for the future, too—building skyscrapers with residential housing may well be a good idea for a country that houses an incredible 19.4% of the world’s population, a figure that is growing day by day.

China is an economic and infrastructural powerhouse, and is likely to continue to be a major frontrunner for many years to come.

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J57 Sky City Changsha, China

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PRIVATISATION VS PUBLIC OWNERSHIP With increasing pressure from an every burgeoning population, which method of management would best suit the public interest?

Words : Hannah Wilde | View : Lukas Gojda

In any country, its public services define its whole identity. Just look at the UK: its National Health Service is one of the country’s most defining attributes—known as the world’s largest publicly-funded health service, and impressively is the fifth-largest employer in the world (employing approximately 1 in 23 of the country’s working population).

As iconic as the UK’s healthcare system undoubtedly is, the NHS is just one cog in the public service machine—the country has a number of top services at its command, including utilities, postal services, public transport, telecommunications and public broadcasting to name but a few.

For those unaware, public services are defined by the Collins Dictionary as “a service such as healthcare, transport or the removal of waste which is organised by the Government or an official body in order to benefit all the people in a particular society or community”. These public services form the pillar of modern democratic society, capitalising on the fundamentals of egalitarianism by providing pivotal services that are freely accessible to all, regardless of income, to enhance the everyday life of the wider population.

Alongside its acclaimed healthcare system, the UK also boasts some incredible public services including a top-tier education system, the Royal Mail (the largest postal service in Europe), and a public broadcasting

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service, spearheaded by the BBC, a broadcaster unrivalled by any other in the developed world but funded solely by a license fee paid by the taxpayer.

For many years, all of the UK’s public services have been kept in the tightly-regulated control of the Government, who is held accountable for the overall management of these services. However, the initial provision of these services is just the beginning—the Government then have to plan budgets, day-to-day operational objectives, managing workforces and dictating the companies’ future projections and aspirations, along with all the paperwork required to manage a public service. Then multiply this by the number of public services that the UK Government actually owns, and this becomes a hugely labourious task, especially in the hands of politicians who are not trained in business management. Therefore, it has come to public attention of late that the Government is not utilising the country’s services in the most effective way, with many arguing that this is because they are being operated by those not qualified to run them.

Surely these revolutionary public services should be running efficiently (and at a profit), so naturally the question has been raised whether these services will be better run in the hands of someone else.

This is where the question of privatisation comes in. Defined in its strictest

Saint Pancras, London

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terms, privatisation refers to the sale of public utilities to private companies, a practice which, whilst widely used by successive UK Governments since the early 1980s, still solicits trepidation from British citizens. Debates have raged over whether or not to privatise the UK’s public services, switching ownership from the Government to arguably more equipped private companies, albeit whose sole focus is on maximising both efficiency and profits. While there are distinct strengths and benefits for both, the question of privatisation still looms for those companies still operating under the control of the Government, especially if the companies in question are underperforming financially.

money is not being utilised in the most effective way possible. While privatisation is somewhat of a minefield, Global Property Scene will look at past examples of switching ownership from public to private companies, and whether this would be the best course of action for the UK going forward. In the face of extreme scrutiny about the ownership of the UK’s public services, the question comes down to this: is it right to keep our public services in the hands of our Government, or look to privatisation to improve efficiency?

Fundamentally, public services are not and were never avenues for generating profit—they were implemented with the sole purpose of protecting the interest and wellbeing of the UK’s populace. However, in the wake of budget cuts, mass job losses and declining quality in the public sector at the hands of the Government, more and more people are questioning whether these services should be treated like businesses (where focus is on maximum efficiency and reinvesting profits for expansion), and so control should be handed to those better equipped to run them as such.

Decades of institutional changes at the hands of changing Governments has inevitably seen the country undergo massive changes in terms of its public services. For many years, the UK had a foothold in most major industries, from aircraft and shipbuilding to car manufacturing, North Sea oil, and even silicon-chip production. In fact, Britain’s culture of state ownership was so vast that as early as 1979 these nationalised industries represented a huge 10% of the whole UK economy, and 14% of capital investment. However, the productivity performance of these nationalised industries lagged far behind the private sector, so much so that the rate of return on capital by the UK’s public service was only 0-2%. It was this that set off warning signs for both politicians and citizens alike, with the unavoidable question being raised: why aren’t these nationalised companies as financially efficient as they should be?

As we speak, billions of pounds worth of taxpayers’ money is funnelled into the UK’s public services—and rightly so, since everyone uses these facilities on a daily basis—but what is causing universal anger is that this

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The history of the UK’s public sector

BT Tower, London

It was only in the era of ‘Thatcherism’ in the UK over the 1980s-90s that things began to change. The introduction of Margaret Thatcher as Prime Minister sparked the winds of change throughout the country—ever since her leadership began in 1979, she was widely considered somewhat of a pioneer for privatisation, and recognised as the first to realise the potential that handing over public services to private owners could offer for the country. Soon this heretofore unheard-of notion of privatisation began, with Thatcher spearheading this new denationalised revolution in the UK. It was here that UK privatisation truly began.

The biggest coup for a denationalised Britain, and one that will demonstrate privatisation at its finest, was the sale of one of the country’s biggest public assets, British Telecom (BT) in 1984. A natural state-owned monopoly in the provision of telecommunications systems, BT was one of many companies that truly suffered from a chronic lack of market competition that inevitably lead to complacency of service. As Conservative politician Kenneth Baker so adequately surmised: “[When BT was under state control] there were hundreds of thousands of people waiting for an ordinary telephone connection because only one company could do it. They would send out their employees when it suited them, rather than when it suited [the consumer]”. Naturally, this scathing criticism of a pivotal asset to the public sector was something that privatisation was looking to fix—the Government in this instance were increasingly keen to liberalise the market and introduce competition into the heretofore

monopolised market.

1981 was the year that real change began to happen. The British Telecommunications Act 1981 finally allowed for the removal of BT from the control of the Post Office, another huge Government-owned entity. This was a huge and revolutionary statutory change, allowing the company the following year to announce plans to sell the company’s 51% controlling shares to private investors. Again, this was another pivotal sectorial change in the UK landscape: in her own words, Margaret Thatcher believed that “through privatisation—particularly the kind of privatisation which leads to the widest possible share ownership by members of the public—the state’s power is reduced, and the power of the people enhanced”. And naturally, when the time came for BT to finally float on the open market, this is exactly what happened—more than three million shares were sold, with an unprecedented 96% of the eligible BT workforce snapping up a percentage of the company’s shares.

As soon as the sale was completed, the whole market changed overnight.

BT no longer was allowed to maintain a monopoly over the telecommunications market, and implemented an independent regulator (Oftel) to promote competition in the industry. Furthermore, this regulatory system was put in place to ensure the company’s continued focus on catering to public interest (as it did under state control), including protecting the rights of consumers as well as retain unprofitable activities

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for the greater good, such as the provision of the UK ‘999’ emergency service number.

since the Government’s sole job is first and foremost to look after the interests of the country’s population.

However, in the 30 years since its privatisation, BT has gone from strength to strength—the company itself has been thriving (both in terms of profit and performance) as a result of increased competition in the market, whilst the transition from public to private ownership created millions of new shareholders (many of whom were ordinary municipal employees), and changed the popular perception regarding the availability and ease of share ownership.

However, as the sale of BT proved, privatisation can also be a positive step for the provision of a specific public service—namely encouraging improved efficiency, increased competition in the market and the potential for profit maximisation that may come as a result of this. One fundamental benefit of privatisation is the political neutrality of businesses operating outside state control. It has been argued that the reason the Government has been called into disrepute over their management of the UK’s public services is that it prioritises its own political agendas over making informed decisions that make economic and commercial sense to the company. So by this logic, an external private company will be much better placed to make decisions based on the grounds of efficiency and profit, ultimately doing what is best for the business in the long-term rather than making decisions to further their own political ends. This is not to say that private businesses do not have their own agendas (rather, it could be argued that corporations could be too profit-oriented rather than focussing on the needs of the consumers), but it seems to make more commercial sense to let vital services be operated by those with business savvy, and are looking to fully maximise the business rather than their own partisan viewpoints.

The successful sale and resulting denationalisation of British Telecoms, one of the biggest state-owned companies formerly held by the UK Government, showed many the ease in which private management teams could operate our public services far more efficiently than the Government.

Naturally this opened the floodgate to hundreds of other companies following in BT’s footsteps, with the Government selecting underperforming companies to undergo privatisation as a means to improve efficiency and profit-maximisation—with the ultimate goal being the provision of the best possible service for the British public.

The current landscape

The great NHS debate Fast-forward 30 years and the public sector is almost unrecognisable from what it once was. Whilst there are still pivotal services still in the charge of the Government (most notably the aforementioned National Health Service), clearly the work of Margaret Thatcher’s Government has had a profound effect on Britain. There has been a cataclysmic shift towards the privatisation of public services since the era of ‘Thatcherism’, whereby over 170 companies were denationalised even before the turn of the century.

The successful sales of some of the biggest companies in the country, if not the world—including British Petroleum (BP), British Airways (BA), British Gas, National Express, Eurostar, and Manchester Airports Group to name just a few—has engrained privatisation into modern life. This still translates itself into the 21st century, whereby in the 15 years since the year 2000, the UK has seen around 40 companies turned over to private hands, the most recent (and well-documented) of which was the sale of The Royal Mail in 2013. However, while the scale of UK privatisation is not in question, what most people want to know is: is privatisation the right way to go for the country’s public services?

This question is difficult to answer in isolation, as each company is unique and operates within a distinctly individual market. Whilst privatisation clearly worked for BT in the 1980’s, it must be understood that privatisation is by no means a ‘one-size-fits-all’ approach. There are a number of potential pitfalls that the Government must be aware of when considering selling off their assets. Arguably the biggest qualm for most when considering privatising the UK’s remaining public services is that the company in question is in danger of losing its core identity when passed to external management outside of Government control. Fundamentally, all public services were set up with the public interest in mind, so there is a danger with many private corporations that profits will become their sole motivator, affording greater priority to profit maximisation rather than the service extended to consumers.

Furthermore, whilst privatisation initially injects a large lump sum into the UK’s Treasury upon the initial sale of an asset, the loss of said company means that the Government loses out on potential dividends and any profits that the company may make in the future. Rather than the money being reinvested in the UK economy as it would if it remained in state control, any future dividends will instead fatten the pockets of wealthy private shareholders, who may not choose to reinvest these profits into improving the company.

An example of failed privatisation is the UK’s energy provision, whereas competition in this particular market has created an all-encompassing six-fold monopoly over the market instead of facilitating rivalry against each other to offer consumers lower prices and better services. Research from Which? has proved this theory as fact—the past few years have seen fuel bills rise a huge eight times faster than our wages, overcharging UK consumers by as much as £145 per year. This has resulted in energy companies failing to pass on savings from falling wholesale energy prices to consumers. Even more shockingly, the current climate in this market has promoted an unhealthy system whereby the poorest consumers subsidise the bills of the richest, with people on prepayment meters paying substantially more for their energy. This would never have been allowed to happen had energy providers still been under the control of the state,

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It is with this in mind that the debate over the future of the UK’s National Health Service comes into question. It has been widely known politicians are keen to privatise the UK’s leading healthcare provider in order to make the service more efficient and cost-effective than it currently is. But would this truly be the best course of action for the NHS, the jewel in the UK public service crown?

Many in favour of maintaining the NHS in public hands are keen to point out that the NHS was crowned the best healthcare system in the world by the Commonweath Fund, and was further commended as the second-cheapest and best-performing healthcare provider in the world overall. This has led to many questioning why the UK Government would seek to change something that is so obviously working—the UK’s health service is leaps and bounds above other developed countries, in particular seen as infinitely better than the healthcare of its American counterparts. It is widely known that America is currently operating a fully privatised health service (where all medical treatment is administered at an astronomical rate and is only subsidised by those lucky enough to have health insurance), so it is no surprise that this system of healthcare provision was deemed the most expensive in the world. Even more startlingly, a huge 37% of people in the US said they would avoid seeking medical help because of cost.

Therefore, in light of the privatisation that is currently ravaging America, the UK’s public health service seems almost idyllic in comparison. Furthermore, avid admirers of the UK’s healthcare system fear less transparency, varying standards of care, fragmented services and prioritising profit margins over patients should the NHS ever fully fall into private hands.

However, some argue that privatisation is not a million miles away from how the NHS is run at this moment in time (with a large proportion of the company’s work and resources already outsourced from the private sector) so this wouldn’t be such a monumental change for the UK’s healthcare system should full privatisation come into effect. From the provision of drugs and other medical supplies to scanners and patient beds, private companies have often been called upon to provide much-needed equipment and services to the NHS, and this is how the company has always operated since its inception. For many years, the Government has utilised its prized National Health Service by buying in services from the private sector and paying for it with NHS funds, solely because it is quicker, cheaper and more efficient to outsource this work. To illustrate this point, not many people know that most of the UK’s General Practitioners (GPs) today are private sector contractors working under the NHS banner— private providers are so much an intrinsic (if hidden) part of our current NHS that spending on private providers accounts for a sizeable 6% of the total NHS budget.

This is a typical ‘swings-and-roundabouts’-type situation where you could go round and round in circles debating the pros and cons of privatisation— but the question is one that has no definitive answer. Ultimately though, it has to be said that what works for one company does not necessarily work for another, so what worked for BT 30 years ago may not necessarily be the right step for the NHS in 2015. Privatisation is increasingly a minefield in the UK, but whether or not this is the best course of action for the country’s long-term public services remains to be seen.

Victorian post box, Carver

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THE RUGBY WORLD CUP GPS takes a look at one of the worlds great sporting events

Words : Rachel Sharman | View : Paolo Bona

The Rugby World Cup is undoubtedly the pinnacle of the Rugby Union calendar. Once every four years, 20 of the world’s greatest countrys compete to determine who is the very best. And now, with less than one month until kick off, tensions are mounting as teams try and determine which games they need to win and can afford to lose in the group stages.

Then, how they should plan and proceed if they make it to the crucial knock out stages, or even to the grand final at the world’s largest rugby union stadium- Twickenham.

The Rugby World Cup has been described as equivalent to their Olympics by rugby players as the world’s attention shifts onto them for the month and a half long tournament. The company who organises the tournament, Rugby World Cup Ltd, have estimated that there will be a massive 4 billion cumulative television viewers watching the action over the duration of the competition. This is significantly more interest than players will be used to, and whether they’ll sink or swim under the additional pressure remains to be seen.

Undoubtedly the favourites to win this year’s competition are New Zealand. They have a strong, well-organised team with many of the best

rated players in the world. Plus, should they win, they’ll be the first team to win back to back World Cups, an extra incentive for the team. Other countries, such as the home nation England, South Africa, and Ireland, will also fancy their chances as they undergo vigorous preparations before the first game begins on the 18th of September.

History wise, the Rugby World Cup is a relatively new tournament, the first of which was in 1987. This doesn’t lessen its prestige, in fact, teams are all eager to be the first squad to lift the champion’s ‘Webb Ellis Cup’ for their countries. Especially in the northern hemisphere which has only ever produced one winner in 2003.

Since 1987, the Rugby World Cup has taken place in a few choice countries around the world, sometimes with two nations hosting at the same time. 2015 will mark the second time England has co-hosted the competition and the third time for Wales. However, 2019, the next competition, will mark a new era in the World Cup’s history as it will be hosted by a completely new country- Japan.

Although this may not seem all that radical at first, Japan hosting the

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competition represents a complete shift in attitude as it will be the first time the Rugby World Cup is not hosted by a Tier 1 nation. ‘Tiers’ are a rugby union rating given to every rugby playing nation, from Tier 1 to Tier 3. The Tier 1 nations are the ones you’re most likely to associate with the sport: Argentina, Australia, England, France, Ireland, Italy, New Zealand, Scotland, South Africa and Wales. However, that doesn’t mean that Tier 2 nations are any less invested.

A Tier 2 or 3 nation may be more passionate and interested in the game than a Tier 1, in fact, Tier 2’s may well be better than Tier 1’s. It is true that Tier 1 teams may have more status within the sport, but that’s hardly a measurable quality. All in all, the actual criteria behind the tiers are not exactly known. And no country better questions the very purpose behind the system than Samoa, a Tier 2 team with possibly more dedication to the sport than anywhere else.

The Independent State of Samoa, usually called Samoa, is a tiny, rugby-mad nation made up of two Polynesian islands in the South Pacific Ocean. It has a population which was estimated to be just under 195,000 in 2012. It is also one of the poorest countries in the world. In 2015, the International Monetary Fund estimated that Samoa had the 176th

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smallest GDP in the world out of 188. Yet despite its small size, population and GDP, the nation’s rugby team ‘Manu Samoa’ is the 9th best rugby union team in the world.

Samoa burst onto the rugby union scene in 1991. After being ignored for the first 1987 Rugby World Cup, they wowed the world during the second by beating joint host nation Wales- 16-13. Since then they have been a constant threat, known for their brute strength and talent as they face, and beat, Tier 2, 3 and 1 teams.

It’s not just rugby union which enthrals the nation. A few years ago, Samoa had the strongest Rugby Sevens team in the world, winning the 09-10 World Series. The coach of that team- Stephen Betham, unfortunately left in 2012 and since the sevens team has struggled. However, Betham’s greener pastures did not take him too far and he’s now the head coach of the Rugby Union team competing in this year’s World Cup. And perhaps he can bring this team to victory too. Sports journalist Edward Knowles commented on Samoa’s World Cup chances this year: “They have been drawn in a decent pool - pool B - so they have a real chance of qualifying. They are in with South Africa who should beat them

Fiji vs South Africa, France 2007

on paper but all of the other matches are certainly winnable for Samoa (Japan, Scotland and the USA). But they are real outsiders to lift the trophy itself.”

So although not necessarily shoe-ins for the trophy, with Stephen Betham at the helm and a bit of momentum, Manu Samoa could progress further through the competition than before. After all, no one can knock the squad’s natural ability. Edward Knowles noted how: “Samoa are a fantastic side to watch. Always strong and powerful with fantastic handling skills.” A thought echoed by the Telegraph which said the side was “blessed with brilliant individual talents who can upset the best when they fancy it.”

Former New Zealand player Zac Guilford also highlighted this by saying, “Pacific Island players are no doubt the most talented players in the world.

They’ve just got so much raw strength, size and ability.” However, he then noted the disadvantages Pacific Island players face: “Unfortunately, Pacific Island teams don’t have the money that rugby is becoming increasingly governed by.”

And it is true, Samoa simply does not have the capital the other big rugby nations do. In 2014, it was reported that Manu Samoa were paid $50,000

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from the Rugby Football Union to play against England, whereas New Zealand were paid $1 million. Likewise, it has been reported that Samoan rugby players are only paid £400 per week, which is minimal in comparison to the £15,000 per world cup match England players will be receiving.

But besides the issues of payment, according to Knowles, “It’s not really just about the money. Samoa produce fantastic players all the time. It’s managing to keep hold of those players. A lot just decide to play for different countries. Tana Umaga, for example, was an incredible Samoan player but captained New Zealand instead.”

In addition, when it comes to the Rugby World Cup, a much anticipated event for many Samoans, they are still at a disadvantage. For example, whilst in preparation for this year’s world cup, Wales has sent its team to the Swiss Alps and England to Colorado for altitude training, yet Samoa is struggling to get its team together. Many of Samoa’s world class players have contracts with world-wide clubs, contracts which do not favour them having to leave to practice with their squad.

According to Dan Leo, a former Samoan rugby player, “I can say confidently that every Pacific Island player when they’re talking with clubs will be pressurised to declare themselves unavailable for internationals.

Two contracts, two salaries, one for if they retire/refrain from Tests and one if they don’t which can vary from up to 30 or 40 percent.”

It’s not just training in different environments which are crucial to World Cup preparations, but also warm up matches against other world class teams. Neither part of other rugby union competitions the Six Nations, nor the southern hemisphere equivalent- the Rugby Championship, Samoa has to organise its own warm up matches on its very limited budget. Then, even if they do manage to get the team together, the players have to take a massive pay cut to play, as Samoa just doesn’t have the same money to fund the athletes.

A prime example of this was during the run up to the 2011 Rugby World Cup. Manu Samoa’s executives estimated that they would need $2,000,000 to fund the preparations necessary for the team’s World Cup campaign. Unfortunately, the Samoan government only offered $360,000, which alongside $420,000 from two of the side’s main sponsors, and $126,000 from the International Rugby Board, left the team still short of $990,000.

Therefore, in order to make up the rest of the $2 million, a number of fundraising initiatives were launched, ranging from a luncheon for local business leaders to the squad going from door to door asking for donations. The Samoan Rugby Union vice-chairman Lefau Harry Schuester commented that, “It’s always a problem for Tier 2 unions. It’s not just us. It’s a problem for Fiji, Tonga, Uruguay. We certainly have the athletes, but it’s the money to support the athletes that will always be the problem unless we get a sponsor who is able to fund the programme the entire year.” And that appears to be the crux of the problem. Perhaps if Samoa, along with a number of the other Tier 2 and 3 teams, had equal funding and therefore equal footing, they could be real World Cup contenders. For now though, even being 9th in the world is a massive achievement considering what they’re against.

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Tonga vs Samoa, France 2007

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Going back to the 2011 World Cup, Samoa did just about manage to raise the sum; however, where it then went is not exactly known. The captain of the time, Mahonri Schwalger, complained that the squad didn’t see any of the money, that they had to pay for their own flights to the competition and were left without balls to train with when they arrived. Perhaps unsurprisingly, Samoa did not make it out of the group stage. However, by finishing in third place out of their group of five allowed the team to qualify automatically for this year’s World Cup. But once the competition ended the team’s troubles did not cease.

Following in the captain’s lead, players made known that they were not impressed by the management and began to protest. The chairman of the Samoan Rugby Union (who also moonlights as the Prime Minister of Samoa), Tuilaepa Sa’ilele Malielegaoi, shot back that the players were “little brats”. The squad then claimed that they and their families were being threatened. Yet, Malielegaoi said he would not bow to their demands. It became a fierce back and forth, with ‘politics’ joining ‘money’ and ‘disconnection’ on the list of problems the Samoan team was facing.

So now approaching the World Cup they automatically qualified for amidst the chaos of 2011, what is happening to the Samoan team? It’s partly the

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same story: Samoa is still losing players to other countries, club contracts are still making it hard for players to train together and money is not exactly flowing. Yet there is that feeling of optimism that comes to every country at the beginning of a big tournament.

A feeling which was epitomised at the beginning of July when the New Zealand All Blacks visited the Samoan capital city Apia, giving Manu Samoa the warm-up match of a lifetime. Although it ended in an encouragingly narrow defeat for Manu Samoa (16-25), this was more than just a rugby game for many, it was a whole countrywide celebration.

To begin with many of the Samoan squad travelled home off their own backs in order to play in the match. This only garnered excitement as all week locals looked forward to what was possibly the most high profile game ever seen on the islands. Upon arrival, rugby players from both sides were treated like rock stars and the actual day of the match was declared a national half day by the government (although not much work was done full stop). All in all, it was a match which will be remembered for years to come and a great practise for the Samoan team against the World Cup favourites.

Italy vs New Zealand, France 2007

Ultimately, Samoa could easily be one of the main nations to beat if they were equals (with the same funds and chances to train together) to the Tier 1 teams. Although right now that hasn’t happened, the Rugby World Cup does have the potential to change everything. The odds of a Samoan victory may be 100/1, yet as Edward Knowles said: “This is sport so anything can happen but it would be one of greatest ever sporting triumphs if Samoa did manage to beat the odds and win the whole competition.”

However, being a little more realistic, perhaps just causing a small upset (whether by making it far through the competition or even beating a Tier 1 team) could give Manu Samoa the much needed publicity to attract a full sponsor.

Although most of the four billion viewers tuning in to this year’s World Cup will just be supporting their home nations from the 18th of September, it is also worth keeping an eye out for some of the Tier 2 teams where passion outstrips GDP. The 2015 Rugby World cup promises to bring all the excitement and tension of any other sport’s main event because ultimately the competition has not yet begun and a strong start coupled with confident players could leave any team victorious.

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INWARD UK INVESTMENT GPS catches up with CBRE to discuss the Inward Investment from Russia into the UK property market Words : Samantha Jones | View : Lee Yiu Tung

Gavrilov Valentin CBRE, Russia Head of Research

> How would you categorise the relationship between Russia and the UK? Relations between Russia and the UK are driven by London’s role as one of the world’s leading capital and property markets. Before the current local economic crisis, Russian companies used London’s opportunities to attract capital. However, nowadays this opportunity is closed by existing sanctions posed by the USA and the EU. London’s property market was interesting for rich individual investors in the residential sector. Nowadays however, the interest of Russian buyers is much less due to both soaring prices and current risks, mainly related to the current geopolitical situation. > How does the local Russian property market compare with that of the UK?

Moscow and the rest of Russia. In Moscow, leasing and investment practices are pretty much the same as in the developed European markets. In this sense, cross border investors coming into Russia, find that investment practices in Moscow are similar to their home markets.

Before the current crisis, leasing contracts for Class A properties were nominated in Dollars. This practice was convenient for cross-border investors, and they made large acquisitions in Russia; for example, Morgan Stanley REIT acquired SEC Metropolis for USD$1.2bn.

However, as a result of the current crisis, the majority of leasing contracts are now nominated in Roubles, which makes it more difficult for cross-border investors, which has led to a decline in their activity in the Russian market. > Do changes in the local market (stocks and/or property) affect where Russians spend their money?

In Russia the property market can be divided into two distinct entities: Ukraine, Europe 58

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London, UK

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CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue).

The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment www.globalpropertyscene.com management; and research and consulting.

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The radical change in Russia’s economic situation influenced spending patterns of even the most affluent of people. Touristic flows in Europe reduced significantly (by 40-50%), and many luxury shopping destinations felt a strong decrease in the number of Russian buyers. In addition, there is a growing trend for savings return from foreign banks into the Russian economy: the amount of offshore companies is decreasing; ownership becomes more transparent and so on. > What is the current value of FDI into the UK from Russia?

In 2014 FDI from Russia into the UK amounted to $USD 2bn, which is roughly 3.5% of Russian FDI. This inward flow of investment is indicative of normal historical levels since 2009, when Russian FDI into the UK fluctuated within $USD 1-2 bn. annually. > How much of that can be directly apportioned to investment into the UK property market?

The majority of Russian investment into the UK property market is carried out via offshore companies. This is why formal statistics do not reflect the actual situation.

Annual Russian investment into London’s residential market can be estimated at around £100m – £300m, although this figure has started to drop slightly in recent years. > Can this value be tracked in regards to exactly where in the country the spend is taking place and in what proportion? For example, are the majority of the transactions taking place in London, or have you seen a switch to more regional locations?

London is the key destination, attracting Russian investments in property markets. This is obviously due to its reputation, liquidity, and established “rules of the game.” > Where do you see the future relationship between the two countries going? Will we see an increased amount of investment into the UK property market?

The answer to this question depends to large extent on the development of current British sanctions on Russian investors. The growing risks of some assets being frozen, or course, make Russian investors nervous and reluctant to invest abroad. This is not only about sanctions imposed by the UK, but also by Europe and the USA. The situation will certainly change when the political relationship between our countries becomes friendlier. > How much of an impact does culture have in business transactions between Russia and the UK? Strong British traditions in both business and the law are attractive for Russian companies seeking reliability in their investment deals. The strong, ethical reputation of British companies is one of the key incentives for transactions. However, current sanctions and restrictions by the UK authorities on Russian investors have added to the element of uncertainty, and caused a noticeable decline in interest in the UK. > Are there any traditions in particular that UK businesses would need to be aware of, in order to conduct business with the Russians?

There are no particular customs or traditions that non-Russians need to be aware of. It is however considered standard business practice for all new entrants to make their first steps into the Russian market in partnership with a reputable consultant, or partner-development company. > What are your predictions for the relationship between the two countries? Do you expect the amount of inward investment into the UK to decrease or increase?

Economic relations between the two countries are strongly influenced by current geopolitical issues. The intensity of business contacts will be quite low unless the above mentioned problems are resolved. There is a long-term potential for growth of Russian investments in the UK as a part of a diversification policy. As we mentioned earlier, everything depends on the British authorities’ attitude to Russia and Russian money.

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Georgian period houses, London

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AIRE

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THE FUTURE OF UK RAIL HS2, a project designed to connect the nation, has actually left it divided

Words : Rachel Sharman | View : P Phillips

The UK economy appears to be back on track. The Great Recession of 2008 is well and truly over, meaning that now is the time to look towards the future. Grand projects and plans, designed to better the nation and future-proof the country, can finally be put into action. And there is no plan which promises to be more expensive, more exciting and more notorious than HS2.

HS2 is the high speed rail project set to link several cities across the country with some of the fastest trains in Europe. It has had parliamentary approval for many years now, with a start date set for 2017. However, the actual route is still up for discussion- stations and cities have been dropped and then reinstated into the plans. For example, in 2009, having a speedy link to Heathrow Airport was one of the original arguments for HS2, but as of 2015 the trains aren’t going to stop there at all.

Although the plans may be subject to change, HS2 is still full steam ahead, a fact which many are not happy with. HS2 is not just your typical infrastructure project - its high cost, long construction period, and the fact that it spans the length of England means it is well and truly in the public eye. In short, it seems that the nation cannot decide whether HS2 is a good or bad idea. Plus, with so much information both boosting and antagonising the project, it is difficult to uncover the actual facts beneath the propaganda. HS2, a project designed to connect the nation, has actually left it divided.

With all of the opinionated misinformation circling the media, the most important thing to understand about HS2 is what the project actually is.

HS2 has been in the news for years now, but its actual starting date is still a couple of years away in 2017. The entire project then promises to take a further 16 years and will finish in 2033, a date which could shift dramatically. Sir David Higgins, the chairman of the entire scheme, has said that he thinks 2033 is a conservative estimate, and that the project could be completed as early as 2030. Critics of HS2 expect it to take longer due to the delays which tend to plague such grand schemes.

What HS2 actually refers to is often misrepresented. HS2 is more than just a long railway line stretching from North to South. Instead, the plans for HS2 have often been likened to a ‘Y’ shape. The bottom half will be from London to Birmingham. Then, two lines will go on from Birmingham. One will travel towards the North West stopping at Manchester and Crewe. The other will go towards the midland cities of Sheffield and Leeds.

It is also important to distinguish between the two phases of HS2. Phase 1 is from London to Birmingham, and Phase 2 is from Birmingham northwards. Phase 1 has the start date of 2017, and therefore is due to have the earlier end date of 2026. Phase 2 does not have a set start date as of yet, but is subject to the 2033 deadline, meaning that it will probably start not too long after Phase 1.

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Despite the confusing nature of the phases, all-in-all the project has a simple aim: to improve rail services between London and cities in the North of England. So where will the train stop?

Travelling from South to North, HS2 will leave from London Euston, which is already one of the city’s main stations. The station will be extended significantly to house the twenty four platforms designed to serve HS2 (as well as regular trains to the Midlands). The train will then begin the journey up the 225km track towards Birmingham. However, before it can get there the train will stop at London’s Old Oak Common and Birmingham Interchange, both regenerated stations outside of the main cities.

Currently, the main train station in Birmingham, New Street Station, has no room for expansion as it is already at full capacity. Therefore, for HS2 to stop in the heart of the city a new station is going to be built. Birmingham Curzon Street will have a central location, not at all far from New Street, and will be used solely by the high speed trains stopping in the city. From Curzon Street the tracks will split, going off in two directions.

The track heading towards Manchester is currently expected to stop at Crewe, Manchester Airport and Manchester’s main station- Piccadilly. This is a line expected to cause its own problems as its route is far from simple, with new stations and tunnels needed.

Manchester Airport is due to receive another railway station called ‘Manchester Interchange’. This will be approximately 2.4 kilometres away from airport’s current station which is located in between the three terminals.

As for Manchester Piccadilly, because the south of Manchester (where the controversial train would be travelling through) is already a highly built-up area, there is no room for a new line to this central station. Therefore, it is expected that a 12.1 kilometre tunnel (which would be the longest in the country) will be built under the suburbs for the trains to travel through before surfacing close to the terminal.

On the other line going towards Leeds, the train will stop at an ‘East Midlands Hub’ railway station. The exact location of this station has yet to be decided with local boroughs competing for the custom it will surely bring. The trains will then go on to Meadowhall Interchange, based in the North-East of Sheffield and connect to the city’s Supertram system.

Finally, HS2 will terminate at Leeds New Lane, another station yet to exist.

It is expected that the New Lane station will be on a viaduct, with elevated airport-style walkways leading passengers into the city.

None of these plans are set in stone, especially for the stations due to be part of Phase 2. However, it is clear how this project is set to rack up such a large bill, with so much new infrastructure having to be built before even getting to the tracks or trains.

Unfortunately, exactly how much the full cost is going to be is not yet known. The Department of Transport (DfT) are the sole owners of HS2 Ltd (the company behind the project) and originally made the estimation of £32.7 billion, a sum many believed to be comically undervaluing the project. Admittedly, this figure has since been upped again to £50 billion which is the current expected price.

However, an Institute of Economic Affairs review into the project still found this revised figure to be far too low. They estimated that in total HS2 will cost the country a massive £80 billion by the time it’s finished. To put this figure in context, HS2 will be worth more than the entire Government 2015-16 budgets for Defence (£45 billion) and Public Order and Safety (£34 billion) put together.

The honest truth is that no one knows exactly how much the project will cost, and due to any number of unforeseen circumstances that could occur from now to 2033, it’s basically impossible to predict. That’s not to say that people haven’t tried- these days any figure under the sun has been guessed, but how much will be spent and how much the government will go over their budget remains to be seen.

With so much up in the air about the locations and price, you may wonder what is actually known for certain about HS2. An easy answer to that, in fact is simple- HS2’s raison d’être is within its very name. HS2 promises to accommodate the fastest trains in the continent. The trains would run up to 400 kilometres per hour, which is faster than any currently operating train

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system in Europe. > These days, an average Birmingham to London journey (159km) takes 1 hour and 24 minutes, with HS2 it will take only 49 minutes. > A current Leeds to London journey (269km) takes 2 hours and 20 minutes which will be reduced to 1 hour and 28 minutes. > A Manchester to London journey (259km) now takes 2 hours and 8 minutes. After the first phase of HS2 this will go down to 1 hour and 40 minutes. After the completion of both phases the journey will have shed an hour, to 1 hour and 8 minutes.

These are journey times which truly will link the nation like never before.

Even flying (traditionally seen as the fastest method of transport) from Manchester to London currently takes 55 minutes, plus that involves all the hassle of the airport and getting back into the city centre once the plane’s landed. The other popular method of transport is driving but from Manchester to the capital this likely to take the best part of four hours.

Other logistics have also been sorted out too: there will be fourteen trains per hour carrying approximately 26,000 people. These will measure at 400 metres long, with each train housing 1,100 seats. All in all, it has the makings of a difficult maths question. And when you throw pricing into the mix, it kind of is.

In 2010 when the project was first being talked about, the DfT examined the economic benefits of creating the line. It was estimated that for every pound spent, HS2 would make £2.40. However, in August 2012 this was re-evaluated and lowered to £1.90 received for pound spent. Plus, the value for money figure for the first phase was also re-estimated to become £1.40 for each £1, a figure which officially drags HS2 Phase 1 into the DfT’s ‘low value for money category’.

Part of the problem is that no one knows quite how much tickets are going to cost, a crucially missing sum in the grand equation. HS2’s legacy could last for centuries, much like the Victorian railways which still serve the country today. Surely at some point, the project will break even. But how far away is that date? And can the country afford such a high price before the money starts to come in?

Some people say yes. High speed rail networks have been expanding throughout mainland Europe since the 1980s. And Britain, once a pioneer of railway technology, has definitely been left behind. Countries such as France, Germany, Italy and Spain have invested heavily into creating high speed railways to connect their cities and countries. In 2009, it was recorded that there was 5,600km of high speed lines across the continent, along with a further 3,480km under construction (some of which is now likely to have finished) and 8,500km set for building (some of which is now likely to have started). It is clear that high speed rail is a priority for most European countries; but with the UK being a notably smaller, island nation, it has so far not needed such a complex system.

However, our railway system will not hold up forever. Trains are an increasingly popular method of transport, and the current railways are becoming more and more congested and less and less reliable as a result. Every year 1.3 billion train journeys are made in the UK and this is only set to increase. It is predicted that in the next 30 years, passenger demand will more than double. Therefore, with the railway system already reaching capacity (added on to the country’s rising population), many predict that making no changes to the current railway system will lead to more road congestion too. Whether HS2 is the best solution for these forecasts of a congested nation remains to be seen, but it certainly is a problem which needs to be dealt with soon.

But HS2 is more than just a solution to a capacity problem- the DfT sees it as a way of connecting cities throughout the nation. HS2 will bring regions together like never before, with dramatically shorter journeys allowing people to zip from city to city in a few hours’ time. Therefore it will bring new levels of footfall and attention to areas which were previously thought to be too far from London- the business hub of the country. With the cities being connected by such fast links, using the local transport to then have access to nearby areas would leave them benefitting as well.

HS2 has even been cited as a ‘catalyst for growth in the midlands and the north.’ And it’s easy to see how exciting this could be.

After all, regional cities, alongside London, are the lifeblood of the

High speed mainline, UK

Australian Open, January 20, 2013

country. Although cities only take up 9% of the country’s land, they house 54% of the population and account for 59% of jobs and 61% of the country’s economic output. Also, perhaps a little surprisingly, cities are actually greener than the green land around them, producing 32% fewer carbon dioxide emissions than rural areas. In short, cities are certainly worth extra investment and maximising their productivity by giving them better links should give them more advantages going forward.

HS2 will future proof Britain with advanced rail technology, it will provide tens of thousands of jobs and it will aid traffic congestion, but ultimately HS2 isn’t about the trains, it’s about majorly benefitting the cities that it will stop at. Or, at least, that’s the dream. Because unfortunately as people claim these railway lines will bring new life and business to the regions, others argue that they will only encourage people right back into the capital.

London has already garnered a reputation as a ‘brain drain’ of a city. It offers the lion’s share of jobs and every year attracts new graduates from universities nationwide. There is the chance that HS2 will just become a train for those commuting to the capital. In other words, rather than creating a way for people and businesses to get out of the capital quickly, it acts as an excuse for more people to work in the capital, live elsewhere, and catch HS2 as a means of commuting.

Another major concern about HS2 is the effect it will have on the countryside. The train would unashamedly travel through the countryside, through green belts and AONBs (Areas of Outstanding Natural Beauty).

The full ramifications it will have on the British wildlife are not quite known, although they’re not going to be positive. What it will do to the local property markets are more evident, with houses close to the routes already dropping in value by as much as 40%.

Ultimately, a lot of people are worried that HS2 will be a very expensive project with minimal results. They are afraid that the price tag isn’t worth taking the odd hour off a train journey that may be incredibly expensive for tickets. Another problem many have with HS2 is how little it appears the government is listening to the general public, as current opinion polls of the project are at an all-time low.

The most recent polls have been by ComRes, in April 2015, which only saw 22% of British adults supporting the entire project. A slightly more positive, but notably earlier poll was by YouGov who, in May 2014, found that 30% of people supported HS2 whereas 48% opposed the project.

At the beginning it was believed that Northerners welcomed the idea of HS2 and it was the Southern counties it would pass through who objected.

However, as the reality of HS2 only reaching the North in 2032 seems further and further away, and other regional rail projects appear to be getting scrapped in favour of HS2, it is rapidly losing support from those it was designed to benefit most. Nowadays, the vast majority of people seem to think it won’t make any difference to the regions they live in, and 14% of Northerners are actually worried it will have a negative effect on the area, partially because of the prospect of a mass exodus to London.

Equally, the 2015 MPA (Major Projects Authority) governmental department gave HS2 the ominous amber/red rating, proving its own worries about the project. What this rating means is that the successful delivery of the project is in doubt, with the possibility of major risks or issues. Many see this report, along with the public dissent for the project as damning evidence that it should not continue, yet the DfT are still strongly promoting HS2 and seem even more dedicated in the face of adversity.

All in all, HS2 has got its fair share of fans, but currently a large opposition.

Perhaps with a little more transparency regarding finances and a degree of flexibility in the plans, the government could begin to gain back some support. After all, the idea is fundamentally a good one- not many people would turn their noses up at the chance to connect different places and bridge the North/South divide, it’s just how it is being realised which is attracting criticism.

Will HS2 be a success? Will it even ever be finished? It could bring the nation into a new era of easy connectivity and prosperity, or it could end up with a spiralling cost that leaves other projects unfeasible. With such a late finish date, it’s impossible to predict now what will happen. Either way, at this moment in time HS2 is due to start in 2017, what the picture’s like in 2033 remains to be seen.

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Massy TGV route, France

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WORLD MARKET VIEW The global financial crisis plunged property markets into a downward spiral. Eight years on Global Property Scene takes a look at how the Russian property market stacks up to it’s overseas equivalents.

Manchester, UK • Median Sales Price: $415,618* • Average price per sqft: $974

Note - Figures correct as of stated dates: * August 2015

New York, USA Los Angeles, USA • Median Sales Price: $561,000* • Average price per sqft: $819

• Median Sales Price: $1,211,437* • Average price per sqft: $1,435

Mexico City, Mexico • Median Sales Price: $95,000* • Average price per sqft: $670

Sao Paulo, Brazil • Median Sales Price: $225,000* • Average price per sqft: $174

Cape Town, South Africa • Median Sales Price: $76,688* • Average price per sqft: $174

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Beijing, China Moscow, Russia • Median Sales Price: $370,000* • Average price per sqft: $707

Dubai, UAE • Median Sales Price: $257,694* • Average price per sqft: $473

• Median Sales Price: $63,930* • Average price per sqft: $898

Sydney, Australia • Median Sales Price: $574,667* • Average price per sqft: $754

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WHAT’S THE ALTERNATIVE? As an investment classic cars seem to offer everything, adventure, thills and most importantly, a good return Words : Michael Smith | View : Juan Camilo Bernal

Speaking as a car enthusiast I find it difficult not to see the appeal of spending money on cars, many of which prove to be a good waste of money. Why you may ask? It all comes down to one word, “reliability”.

Most of the vehicles you find from pre 1980’s will suffer from something, resulting in the consumption of your spare time in a desperate attempt to stem the torrent of part and labour costs. In spite of this I find it difficult not to be swayed into another project, the thrill of that first outing, the raw feeling one can only achieve from a classic car. Today’s offerings feel detached and sterile. With safety, economy and practicality now the primary requirements for most individuals automotive existence, it seems like the classic cars place no longer seems to exist.

longer felt security in the banks, as protected pots were capped at much lower levels. In spite of this one industry has been unaffected throughout, classic cars.

As the hammer fell on the 1962 Ferrari 250 GTO at Bonhams’ Quail Lodge auction in February, the market analysts were busy revising their price forecasts. The headline price of $38,115,000 (£22.8m) – a new auction world record – captured headline writers’ imaginations. Firstly because the initial valuation was almost $4,000,000 (£2.5m) short of the final price, and secondly because it eclipsed the previous record holder (1954 Mercedes-Benz W196, sold on July 12th 2013) by just shy of $10,000,000 (£6.3m).

Or does it?

Back in 2008 we watched as the worlds financial institutions collectively melted under the strain of bad decisions. Ironically, much like classic cars we’d reached a point where everything had become too costly to maintain. Many people had to sit back and watch their hard-earned nest eggs implode. Property prices, the job market and interest rates all took a sharp nosedive. Those of us who managed to hang onto some capital no

Considered by many to be the most desirable collectors car in history, the sale of a 1962 Ferrari 250 GTO is a rare event. Until this high-profile sale, recent GTO transactions took place in private, with the prices achieved subject to wild speculation. GTOs were notionally hyped up to £30-35m, inflating prices of classics across the board. Experts thought differently: a GTO was worth £20-25m – as Bonhams proved.

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With cars attracting sums of money as vast as these it’s clear the classic car market has the capacity to quench any investors needs. Many of whom feel its a safer option to have money invested in something tangible. Furthermore this is good news for the whole classic car market, silencing whispers that we were heading for an early-’90s style price crash.

So are we really in a boom?

Back in the early 90s, the cash excesses of the 80’s had buoyed the motor industry. The leading performance car marks were in a battle to create the ultimate sports exotica. With models such as the Porsche 959, Ferrari F40, Jaguar XJ220 and Lamborghini Diablo we’d entered an era where 200mph from a road car was a conceivable notion. These cars were conceived from an era of road racing & group rallying. The much anticipated Ferrari 288 GTO, the natural successor to the above mentioned 250 GTO, was tipped to be a racing legend. Unfortunately, it never had chance to earn that title, by the time it was homologated and cleared to compete it was no longer needed. The same can be said about the Porsche 959. It had Group B rallying aspirations, but

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circumstances out of its control prevented it’s real introduction. In 1986 a series of high profile accidents, resulting in the deaths of both drivers and spectators compelled the FIA (Motor Racing Body) to act: Group B cars were immediately banned for 1987.

Although both of these sports were on the decline, particularly in the case of the Group B, demand was still high for performance cars. In the midst of this, cracks had began to emerge in the classic market. The early-’90s crash has often been linked to the bubble bursting in Japanese real estate and stocks. It wouldn’t be until 1998 we’d begin to see the market recover. Since then, there’s never been a year where classic car prices fell back.

This is just as true for anything from your entry-level Porsche 911SC all the way to blue chip, competition Ferraris, the long-time darling of the classic car investor. In the world of classics the really interesting changes have taken place since the 2008 economic crisis. In a market where more conventional investments have frequently struggled, classic cars have continued to surge upward.

1961 E-Type Jaguar Value : £128,000

For those keen investors tracking the most important classic car prices, the findings have been staggering. The high-end products are achieving double-digit growth rates. 2013 saw some serious levels of growth; with limited run classics, many of which only change hands between smaller groups of enthusiasts achieving as much as 40% increases over just a 12 month period. 2014 proved to be a more moderate period, with growth rates across the board landing around 8.42% at the end of July.

From 2011 to 2013, the market reached a point where nearly every sub-market was trading at all-time highs. Although there are signs that it’s leveling off, it will likely remain strong until the next global economic crisis.’ And while interest rates remain at historic lows, classic cars continue to be a fun way of growing your money.

So what can we expect in 2015?

There are many positives to buying a classic car in the current climate.

Today’s market is very different to that of the early 1990s, when values crashed spectacularly. Significantly, 2013 aside, growth has been steady rather than spectacular, and whereas in the 1980s the emphasis seemed

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1963 Aston Martin DB5, Value : ÂŁ650,000

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to be purely on a vehicles condition (with a consequent tidal wave of often questionable restorations to order), todays cars are valued for their history and provenance. Patina is all. History and pedigree is what drives many buyers. It is this drive which creates such demand for nearly all the pre 90’s Ferraris. The low numbers produced, the success achieved by their racing focused foundations and most importantly their sheer beauty makes them hard to ignore. Many of these attributes can be applied to its competitors Maserati, Jaguar, Bugatti and Mercedes to name a few. They too achieve vast sums of money but never really seem to capture the excitement of a rare Ferrari at auction.

Tellingly, as money has become less available to the investor, far fewer classic cars are bought with borrowed money. Buyers are much better educated about a more international market – so the compulsion to sell at a loss lessens when local troubles occur. It’s easy to move your car on in another, more prosperous, overseas market these days. As individual investors are often willing to travel to all parts of the world to find the right investment, the sellers feel the same. With auction houses achieving record prices, which become record commissions, the process can often be quite hands-off.

It’s not just the auction houses that are seeing good sales results, many

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people see exporting unwanted classic cars to more thirsty markets a very lucrative notion. For instance back in 2014 you could pickup a fairly common 200,000-mile 1980’s Porsche 911SC in California for around £7800. The same car can then be shipped to the German market, where rust-free, clean, ex-California examples are experiencing high levels of demand. With little marketing you’d expect at the very minimum around £14,000.

So the question is where should you be investing your money? The big shock of 2014 was the stratospheric prices achieved by the Lamborghini LP400 Periscope Countach. We already know that prices for the beautiful Miura are kissing £1 million, so a classic Lamborghini with the same V12 engine for a fraction of the price seems like a strong market contender.

The Lamborghini Espada (Spanish for sword) is what you want. Ok, the 325bhp V12 is slightly detuned but it is fantastic to drive, whereas the Miura and Countach are not. Spacious, comfortable, fast and with great styling by the famous Gandini design house. Expect to pay from £55,000 for this timeless classic.

Another fast mover could be the Ferrari 550 Maranello. A big, front-engined V12 Ferrari for just £60,000. That price will only be for left-hand-drive examples in Europe. Right-hand-drive values have risen to

1956 Porsche Speedster Value : £375,000

£85,000 but left-hand-drive cars are still lagging behind. This is a proper Ferrari, with its stonking 5.5-litre engine producing 485bhp at 7000rpm.

Prices could be nudging the the £100,000 mark in the next 18 months.

If you’re looking to enter the market at a lower level the Porsche 368CS has seen strong maket growth in 2014. It is often considered to be one of the best-handling Porsches ever. With stripped-out trim the CS weighs just 1320kg, allowing it to accelerate from rest to 60mph in 6.3 seconds and on to 160mph. The UK-only 968 Sport is the same car but with more electrical gadgets and comfortable seats, and it is generally cheaper than the CS. Expect to pick up a good example for £18,000.

So, while the years of spectacular growth in classic car values might be cooling, there’s little danger of them crashing either. Expect 5% annual growth in values of the ‘right’ cars, sustained in the long term, is not to be sniffed at – and you can have a hell of a lot of fun driving your investment.

What better excuse is there to cash in that ISA, dig out some money from under the sofa, and indulge in something classic?

Note - Figures correct as of August 2015

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Q &

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It’s time for GPS to answer some of our readers most pressing questions Words : Samantha Jones

Q. When purchasing a buy-to-let property, do I have to pay any fees that are separate to my initial investment?

A. In addition to the purchase price of the investment, there will be certain legal fees that need to paid to both the buyer and seller’s solicitor.

The buyer’s solicitor’s fees will be inclusive of, but not limited to; legal fees, VAT, search fees and dispersements, which include stamp duty, bank transfer fees and ID checks. The fees paid to the seller’s solicitor are classed as engrossment fees.

The fees paid to the seller’s solicitor are classed as engrossment fees.

These fees are charged by the seller’s solicitor and payable by the buyer.

Engrossment fees are charged in addition to the buyers solicitors legal fees.

indicates that the furniture is included in the overall property price.

However, it is always best to ask the question before-hand, so that you are not surprised by any additional charges.

Q. If I invest in a student development, do I have to find the tenant myself? If not, what happens if the specific studio I invest in doesn’t get tenanted?

A. Generally, purpose-built student accommodation (PBSA) investments are already tied-in to an experienced lettings and management company, and you have to sign up to use their service as part of the investment.

Whilst this may sound restrictive, it actually allows for a heightened level of service, with only one company in charge of setting the rental rates and organising viewings etc.

Q.

There are no absolute guarantees that the development you invest in will have no void periods, whether student or residential, however there are certain things to look out for, to help mitigate the risk.

When the listing says that a property is fully-furnished, is that included in the price of the initial investment?

1. Research the local area – does it have a high student population and lack of PBSA, indicating strong rental demand?

A. As a general rule of thumb, advertising a property as fully-furnished

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2. Look into the track record of the lettings and management company associated with the investment – do they have a strong lettings rate on previous schemes?

Q.

Q.

If I am buying a property from a specific investment company, do I need to use their solicitors or do I have the option?

Can I use my pension to invest?

A.

A. You are under no obligation to use a preferred solicitor. However, the reason behind recommending a specific company is generally in your interest, as they will have in-depth knowledge of the property and type of investment that is being bought. Whilst your own solicitor may be extremely experienced, buy-to-let investments are a niche market with additional documentation and, as such, should really be handled by a solicitor who has previous experience in the sector.

Yes. The UK pension landscape has changed as of April 2015 to allow those nearing retirement age to release equity from their pension without having to buy an annuity. UK residents over the age of 55 can release 25% of their pension fund tax-free, with the remaining lump sum taxable at the pension-holder’s marginal rate of income tax. Because of these changes in regulations, many pensioners are looking to the lucrative buy-to-let market to further invest their pension, but it is advisable to speak to a financial advisor before withdrawing any money from a regulated pension fund to invest in property.

ASK THE EXPERT

Q. The Northern cities appear to be in a building boom, but what is being built and who is it for?

A. After the credit crunch and the prolonged economic slump that followed, business and investor confidence is flowing in the Northern cities. A good indicator of this is the increasing number of cranes now appearing on the skylines of Leeds, Manchester, Liverpool and Sheffield. These cities are now buzzing with levels of construction activity not seen for over a decade.

Fuelling much of this activity is the continuing rise in the functions and amenities that these city centres offer, in addition to significant and corresponding increases in their ‘live in’ populations. This growth has been driven primarily by young, highly educated, single residents, sometimes referred to as ‘millennials’ or ‘Generation Y’. They are likely to be students or skilled workers attracted to the greater mix of jobs, opportunities and amenities that city centres provide. A recent report by the Centre for Cities highlighted that the population of city centres in England and Wales grew by 37 per cent over a 10 year period, from 0.66 million in 2001 to 0.9 million residents in 2011. This trend shows no sign of slowing and is increasingly driving new developments and shaping the design of buildings coming forward.

Much of the current construction activity is focused on delivering a new generation of residential, office and cultural developments that will significantly enhance the attractiveness of city centres. The mix of uses is diversifying with an increasing emphasis on more residential and leisure

space, whilst the physical extent of city centres is expanding through new developments on their fringes. Demand for purpose built student accommodation remains high in central areas with new developments providing an increasing array of amenities for residents including gyms, private study areas and cinema rooms. Similarly in the general private rented sector, new schemes are paying more attention to the range of amenities they provide and improving the quality of the private and public spaces that residents can enjoy.

For employers locating centrally in high quality offices is increasingly important in order to attract the best young talent and for staff recruitment and retention. There are a number of large Grade A office schemes currently under construction across Northern cities which will meet this demand. These include the 220,000 sqft Central Square in Leeds and the 161,000 sqft Two St Peters Place in Manchester. The cultural and leisure offer in city centres continues to improve and increase their attractiveness as places to live and visit. One recently completed example is First Street in Manchester, a large new development offering a blend of culture, leisure and retail uses.

The higher standards being demanded of new developments also seems to be producing schemes which are being designed to better quality architectural standards than many of the developments built prior to 2007.

Some examples of how the newer buildings are superior to their predecessors include larger ‘floor to ceiling’ windows, better quality external materials and a more generous provision of private and public amenity spaces. Taken as a whole these developments are improving the quality and choice of residential and employment accommodation, and enhancing the cultural and leisure offer. They herald the ongoing rise and renaissance of city centres, ensuring they continue to go from strength to strength as places to live, work and play.

*These questions and answers are provided for general information only and may not be completely accurate in every circumstance.

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SHOULD I MOVE TO ST. PETERSBURG? Words : Christine Schulz | View : Songquan Deng

Having been raised in a rather traditional Russian household, I grew up hearing the stories about olden day Russia with its tsars and tsarinas (the former monarchs and supreme rulers of the country). I was told tales of their lives and their reign, how stunning their palaces were and the cities that they lived in. However, one of the things that I remember the most is how vividly my family would describe the locations in which their stories took place in – with one in particular standing out: St. Petersburg.

With a population of almost 5 million people, St. Petersburg is the second largest city in Russia after its capital Moscow. Nevertheless, St. Petersburg – or “Piter”, as the Russians lovingly call it – is most definitely the people’s favourite. If you asked any Russian what they think the most beautiful city in the world is, they wouldn’t hesitate to wholeheartedly reply with Piter!

Situated in the North of Russia, at the Gulf of Finland on the Baltic Sea, St. Petersburg has become known for being one of the most culturally rich cities on the planet.

And deservingly so: The moment you step foot in its beautiful city centre, it feels like something out of a fairy tale. Compared to Russia’s capital Moscow, the architecture in Piter has mostly been preserved. Its historical focal points such as the famous Church of the Savior on Blood (one of St. Petersburg main tourist attractions) or the St. Isaac’s Cathedral (Russia’s largest Orthodox basilica), still display the unique blend of colourful characteristics from both the baroque period as well as neoclassical buildings of the 18th and 19th centuries.

Having been put on the UNESCO World Heritage list, St. Petersburg

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is most definitely one of the world’s major hotspots when it comes to culture and tourism: it has over 200 different museums, 2,000 libraries, 80 theatres, 100 concert organisations, 45 galleries and exhibition halls and thousands more individual monuments of architecture, history and culture.

The St. Petersburg based Hermitage Museum for example, which was officially opened by Russia’s darling Catherine the Great, is among the oldest and largest museums in the world. It contains an impressive collection over 3 million items – making it the world’s largest collection of paintings.

Walking around the city can feel like travelling back in time: In its centre in Palace Square you can see the Winter Palace, one of the former residences of its rulers, in all its glory. The palace itself is a strikingly large building with green walls and golden ornaments. The square is imposingly big and truly comes to life when it is flooded with people enjoying one of the city’s many shows and live performances. Not far from there are the classic tour guide go-to destinations such as the Hermitage museum, the Kunstkamera, the Admiralty building, the world renowned Mariinsky Theatre and Vasilyevsky Island.

St. Petersburg is located right by the sea. The city has a complex web of canals, and with them many separated islands that each forms their own little districts. All islands however are connected to the mainland by one of the city’s many famous bridges. Because of the sheer amount of waterways, St. Petersburg is often referred to as “the Venice of the North”, offering gondola rides to the city’s visitors.

Alexander Column, St. Petersburg

One thing I can say for certain is that if you’re just planning a brief visit to St. Petersburg, make sure to go in its relatively short but very warm summer. Roughly between the months of June and July the city sees its famous White Nights Festival taking place – a phenomenon common to the Arctic Circle where the day literally never ends. The sun shines throughout night, leading straight into the new day. This event is a truly unique art festival filled with classical ballet performances, operas and musical events. Although White Nights are not just unique to St. Petersburg, no other city has ever received so much worldwide poetic and literary praise. During these summer nights the city and its people seem to never sleep. In 2010 for example, the festival managed to attract over 3 million spectators from all over the world who came to enjoy one of the bespoke performances at the likes of the Mariinksy Theatre, take a stroll along its main River Neva and watch the bridges opening up, letting ships from all over dock at St. Petersburg’s harbour.

The most popular event during the White Nights Festival is Scarlet Sails, a celebration of the end of the school year. During this night the city puts on a massive water show with boats and spectacular fireworks, all

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accompanied by musical performances and international entertainers, such as the Cirque du Soleil, the Mariinsky Ballet and other international celebrities.

Performing arts are not only a main component of festivals such as the White Nights but are also considered to be a vital part of the city’s identity.

Its population is home to many acclaimed academies and institutions which have introduced many of the world’s best ballet dancers, opera singers and musicians. So if you’re a fan of live shows, St. Petersburg is definitely the place to be.

When you come to this city and discover its heritage, you are sure to be welcomed by its citizens. The people here are extremely friendly and helpful, and may even end up showing you around the city whilst telling you the stories about its lively past. If you’re in luck, you’ll get invited into their home for some delicious pelmeni (Russian styled dumplings consisting of beef fillings wrapped in a dough blanket), mouth-watering pirozhki (small bun pies with a variety of fillings) or traditional homemade borscht (a flavourful soup), accompanied by - yes, you guessed it correctly

Hermitage and Paul Fortress, St. Petersburg

- Russian vodka.

You can believe me when I say there will never be a dull moment in this city. No matter what you’re after, St. Petersburg will have it. A visit to the museum? Check. A stroll around the park? Most definitely. A gondola ride around the city? Of course. Or a crazy all-nighter? 100% guaranteed.

St. Petersburg is famous for its vibrant nightlife, filled with lively clubs and buzzing bars. Dumskaya Ulitsa is perhaps the best place to be: the street virtually overflows with trendy venues ranging from underground rock’n’roll spots to clubs with seemingly endless queues. Whatever your mood or even your price-range, you’re sure to find it in Russia’s beloved Piter.

So coming back to the question of if you should move to St. Petersburg, the answer is quite easy: Yes! That is of course if you want to experience a truly extraordinary lifestyle in a city that is breathtakingly beautiful, rich in history and filled with welcoming, cheerful people.

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Specialists at providing buy-to-let properties to the private investor market, Knight Knox has a wide range of developments available across the UK. Working alongside a team of experienced developers, solicitors and agents allows Knight Knox to provide expert advice and guidance on a range of investments.

Over the next 32 pages you will see a selection of the investment opportunities available through Knight Knox.

+44(0)161 772 1370 www.knightknox.com Market Leaders In Worldwide Property Investment

X1 AIRE Leeds PRICES FROM :

ÂŁ105,000 > 6% NET rental returns Studios, 1, 2 and 3-bedroom apartments Lettings and management company in place Private communal facilities State-of-the-art apartments Prime location in the heart of Leeds

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X1 Aire is Knight Knox’s newest development in the heart of the thriving city of Leeds. This development is set to provide state-of-the-art living for a vastly undersupplied Leeds rental market, providing a stunning array of apartments ranging from bespoke 1-beds to stunning penthouses.

X1 Aire is set to take boutique city centre living to the next level, providing state-of-the-art apartments to the private rental market.

BRIDGEWATER POINT Salford PRICES FROM :

£114,995 > 6% NET rental returns Lettings and management company in place Close to Manchester and Salford city centres On-site gym and communal gardens Built by an experienced developer High demand in local area

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Bridgewater Point is the newest addition to Salford’s booming rental market. This development is set to introduce bespoke luxury living for the vastly in-demand residential market in the city, providing a beautiful mix of one, two, and three-bedroom apartments that are furnished to the highest of standards.

Bridgewater Point perfectly encapsulates boutique city living, providing its tenants with top-of-the-range amenities including a private residents’ gym on-site, as well as a beautifully-landscaped communal garden area, and secure parking and bicycle storage.

X1 MEDIA CITY TOWER 1 Salford Quays PRICES FROM :

ÂŁ94,950 > 6% NET rental returns Studios, 1, 2 and 3-bedroom apartments Lettings and management company in place Private communal facilities Great transport links and close to shops Most exclusive development outside of London

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With 1,036 apartments covering an area of approx.

544,820sqf, X1 Media City is the largest residential development in the North West.

The development itself consists of four iconic towers, each containing a mixture of studios, one, two and three-bedroom apartments. With spectacular views over the city and MediaCityUK, the apartments are available fully furnished in a high-end, elegant flair.

NOW SOLD OUT

ADELPHI WHARF PHASE 1 Salford PRICES FROM :

ÂŁ94,995 > 6% NET rental returns Yields assured for 1 year 10 minutes walk to central Manchester Experienced managing agent Great transport links and close to shopping Chronic undersupply of housing in Manchester and Salford 96

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Adelphi Wharf contrasts city and country living. Located in Salford, bordering directly on Manchester city centre, Adelphi Wharf is a picturesque property overlooking the beautiful River Irwell. It is a ÂŁ75million development comprising a total of 580 designer apartments.

With the first phase set to be completed in August 2016, residents of Adelphi Wharf can pick from a range of high-end studios and luxury townhouses, as well as bespoke one, two and three-bedroom apartments.

X1 MEDIA CITY TOWER 2 Salford Quays PRICES FROM :

ÂŁ104,950 > 6% NET rental returns Studios, 1, 2 and 3-bedroom apartments Lettings and management company in place Private communal facilities Great transport links and close to shopping Most exclusive development outside of London

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With 1,036 apartments covering an area of approx.

544,820sqf, X1 Media City is the largest residential development in the North West.

The development itself consists of four iconic towers, each containing a mixture of studios, one, two and three-bedroom apartments. With spectacular views over the city and MediaCityUK, the apartments are available fully furnished with a high-end, elegant flair.

X1 EASTBANK Manchester PRICES FROM :

ÂŁ110,000 > 6% NET rental returns Phase 1 - 112 apartments / 40 parking spaces Phase 2/3 - 172 apartments with private parking Assured rental yield available Walking distance to Manchester city centre High rental demand in local area

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X1 Eastbank is enviably located on the edge of Manchester city centre in the thriving area of Ancoats and New Islington.

This luxurious development will have all the advantages of being a short walk away from the local parks and independent shops of suburbia, but also the vibrant bars and restaurants of the city.

X1 LIVERPOOL ONE, PHASE TWO Liverpool PRICES FROM :

ÂŁ69,950 > CIrca 7% NET rental returns Assured 7% rental income for 3 years Fully-furnished Phase 2 comprises 133 apartments Located in the centre of Liverpool city centre High rental demand in Liverpool

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Built by X1 Developments, (the developer behind the successful Liverpool student accommodation projects X1 Borden Court and X1 Arndale House), the facilities in X1 Liverpool One are second-to-none.

This luxurious accommodation offers students a highspec gymnasium, cinema room, and communal areas in which to relax after a hard day studying. Normally, such an enviable location comes at the cost of space, but these amenities offered prove X1 Liverpool One is fully dedicated to creating the epitome in luxury student accommodation.

X1 THE TERRACE Liverpool PRICES FROM :

ÂŁ109,950 > 6% NET rental returns Assured 6% rental income for 5 years Fully managed and let by X1 lettings Great central location High-end fixtures and fittings Assured yield period

The Terrace is the fourth phase of the highly successful X1 The Quarter development (Phase 1 The Gallery and Phase 2 The Courtyard are fully tenanted with Phase 3 The Studios in construction).

This development is set to be a 101-unit new-build in the vastly popular city of Liverpool, launched as a direct response to the incredible demand for prime residential apartments in the region, shown by the incredible success of the previous phases.

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BELLS COURT Sheffield PRICES FROM :

ÂŁ69,995 > 7% NET rental returns Assured 7% rental income for 1 years Fully-furnished Excellent city centre location Luxury studio apartments High rental demand in Sheffield

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Bells Court is a brand-new residential project in the highly popular student city of Sheffield!

Bells Court is a new residential development, providing a mix of luxury studio apartments, perfect for both students and young professionals alike. Demand is high for prime accommodation in Sheffield, with its rising house prices and thriving rental market.

X1 THE EXCHANGE Salford Quays PRICES FROM :

ÂŁ97,500 > 6% NET rental returns 140 residential 1 and 2-bed apartments 6% assured NET yield for year 1 10 minutes from Manchester city centre Private parking on selected units 10 storey building

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Comprised of 140 high-end apartments, this 10-storey building will be furnished to the highest standards and ready to accept residents by Q2 2016.

Built by the experienced developer behind the successful X1 Salford Quays Phase 1 (completed) and Phase 2 (under construction), X1 The Exchange is one of the most exciting developments to hit the Manchester market so far this year.

THE QUEEN’S BREWERY Manchester PRICES FROM :

£91,000 > 6.5% NET rental returns 73 luxurious 1 and 2-bedroom apartments Private courtyard and parking 10 minutes from Manchester city centre High-end fixtures and fittings Extensive refurbishment of a landmark Grade II listed building 108

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Housed in a beautiful period building converted to the highest of standards by professional developers, The Queen’s Brewery will be divided into 73 luxurious apartments, as well as providing amenities for residents including private on-site parking.

Easily accessible to local amenities such as bars, restaurants, shops and theatres in just 10 minutes, residents of Queen’s Brewery have the best of both worlds in that they have the benefits of living just on the outskirts of a busy city, but also have easy access to the thriving city centre.

THE COURTYARD AT X1 THE QUARTER Liverpool PRICES FROM :

ÂŁ89,950 > 6% NET rental returns Finance options available Experienced Management company in place Proven rental demand 5 minute walk to Liverpool ONE Opposite Liverpool Marina

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Built by an experienced developer in the residential buy-to-let market, The Courtyard at X1 The Quarter presents a unique concept in luxury living for the residents of Liverpool.

Completed in September 2014, the development contains 77 modern 1, 2 and 3 bed apartments, in addition to 3 bed townhouses. Offered at an extremely competitive purchase price and with virtually no maintenance required due to the new-build status of the development.

SPECTRUM Manchester PRICES FROM :

ÂŁ172,950 > Circa 5.5% NET rental returns Completed and tennanted development Private landscaped gardens Great central location Built by experienced developer High quality fixtures and fittings

Spectrum delivers the best of both worlds, combining chic, urban living with the tranquility of private landscaped gardens.

The studio, one, two and three-bedroom apartments are finished to the highest specification, with floor-to-ceiling windows and full-length balconies in most apartments.

Light floods into the living space and views across the city are a constant reminder of how close you are to everything you could want.

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BENTO Sheffield PRICES FROM :

£279,000 > 8.62% NET rental returns Designed by award-winning architects Unique townhomes design High quality fixtures and fittings ECO-friendly investment Highly sought-after area

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Bento is a new high-tech concept in student accommodation, designed for to the modern student.

As well as fully fitted designer bathrooms, Bento’s interior is beautifully decorated in minimalist white and grey to enhance the already Zen ambience, which is further recognised in the installation of three beautiful private gardens, located on each of the development’s three floors. Furthermore, the development is eco-friendly, meaning that Bento is a perfect amalgamation of high-tech yet sustainable living.

X1 LIVERPOOL ONE, PHASE ONE Liverpool PRICES FROM :

ÂŁ69,950 > CIrca 9.16% NET rental returns Assured 7% rental income for 3 years Fully-furnished Phase 1 comprises 92 apartments Located in the centre of Liverpool city centre High rental demand in Liverpool

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This luxurious development offers students a high-spec facilities that include a gymnasium, cinema room, and communal areas in which to relax after a hard day studying.

Normally, such an enviable location comes at the cost of space, but these amenities offered prove X1 Liverpool One is fully dedicated to creating the epitome in luxury student accommodation.

STANLEY COURT Liverpool PRICES FROM :

ÂŁ59,995 > 8% NET rental returns Assured NET rental yields Lettings and management company in place Private communal facilities Great transport links and close to shopping Built by an experienced developer

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Stanley Court is redefining modern city centre living.

Designed with its residents in mind, this development perfectly encapsulates the needs and wantes of modern tenants, and has gone above and beyond to cater to their needs.

Whilst all Stanley Court’s features will appeal to modern tenants, the communal area in particular (complete with SKY TV, pool table and vending machines) was meticulously designed with the needs of its residents in mind.

WODEN PLACE Manchester PRICES FROM :

TBC > COMING SOON Assured NET rental yields Lettings and management company in place Private communal facilities Great transport links and close to shopping Built by an experienced developer

Wodent Street is enviably located on the edge of Manchester city centre in the thriving area of Castlefield.

This luxurious development will have all the advantages of being a short walk away from the local parks and independent shops of suburbia, but also the vibrant bars and restaurants of the city.

It also sits within walking distance of MediaCityUK, the new home of the BBC.

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X1 THE PLAZA Manchester PRICES FROM :

TBC > COMING SOON City centre location Private parking available Highly experienced developer Luxury fixtures and fittings Close to Manchester Picadilly train station

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Ranked by HSBC as being the second best ‘Buy-to-Let Hotspot’ in the country in 2014, Manchester is a city which has a chronic undersupply of housing, in relation to its population.

Manchester has seen price rises of 18% in Q1 2015 bypassing even London, making this the perfect time to invest in this booming city.

LOOKING FOR PROPERTY TO BUY? BE SURE TO VISIT THE

The UK’s largest and longest running property investment event is presented at ExCeL London every April and October.

The major names in UK and international property will be out in force with plenty of ‘off-market’ bargain deals and show exclusives to choose from.

E FREW

SHO Y ENTR

REGISTER ONLINE AT www.propertyinvestor.co.uk NOTE: Seminar booking opens approximately 6 weeks before show opening day

THE BEST OF UK BUY-TO-LET New-build buy-to-let Studios, 1, 2 & 3-bed apartments available Management companies in place In prime locations across Manchester, Liverpool and Leeds

PRICES FROM ÂŁ94,995

Contact Us: +44 (0)161 772 1370 | info@knightknox.com www.knightknox.com