After the world wide banking crisis and the subsequent collapse of property prices the banks have increasingly become the largest owners of real estate as the default rate of over exposed developers has risen year on year during the crisis years between 2008 and 2013.
Initially, the banks were allowed to postpone the recognition of losses by unrealistic pricing and the consequent lack of sales. However, this position has been reversed in 2012 as they have been obliged to realise the value, which remains in their assets, by enforced disposals. The investment proposition is rendered more attractive by the availability of low cost finance to approved borrowers.
As a well-known investor within the leisure property industry, we are regularly contacted by banks and other lenders, with offers, which fit our guidelines. These are the property must be of a quality standard, useable, in a good location and priced well below the market value. Other issues, such as management and holding expenses are considered as well.
Realty Access is only committed to leisure real estate purchases priced at below 30 to 40 % below the market value. We therefore expect not only the usual capital growth of around 5 to 10 %, but also a share of the recovery of prices of the properties.
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