News & Views

SUMMER 2009

Expanding Staff in All Teams

Recent LPA Appointments

Growth in Advice to Bank Business Support Teams and Insolvency Practitioners

Growth in Re-Valuations for Banks Including Hotel Valuations

Landlord  and Tenant Department

Commercial Agency Department


Market Overview


We are pleased to report that, over the last three months, our business has been showing signs of some growth, after a rather sketchy previous six month period.

In general, the current market sentiment seems to be one of cautious optimism. 

In our dealings with residential agents, primarily on the development side of our valuation side and also via our development investment side, they are reporting more turnover in terms of viewings and a small increase in transactional activity.  The general consensus, however, seems to be one of concern that this is a blip rather than a continuous trend.

In terms of our development and investment section, the number of transactions over the past year has reduced dramatically.  However, over the past three months, we have seen a number of very experienced purchasers who have been out of the market for a while, coming back in with a considerable amount of money available to look at new opportunities, as they perceive there is value in the market.

We are currently advising a number of banks via our valuation and agency side in relation to re-valuations and potential LPA Receivership work, and we are noticing a hardening of the Bank's attitude towards certain clients, who they perceive to have been reckless and unprofessional in their purchasing approach over the past few years.


They seem to be adopting a more favourable approach to those who are able to meet their interest cover and generally have some equity in their portfolio, who the Bank perceive to be more professional investors and developers, who, although made the wrong call in terms of the market, have been caught out by it rather than been reckless.


LPA and Insolvency Work


Particular growth areas are those highlighted above, where David Foskett and Richard Alford are being appointed as LPA Receiver on behalf of our Banking clients and the Receivership Departments and Business Support Unit Teams within.  We are also getting a number of valuations from large to small insolvency practitioners, typically when they are appointed as Administrators, and ultimately the disposal of the assets in some cases.  We are currently advising on the disposal of an £8m asset in Islington, a portfolio of shops and upper parts in East London worth approximately £7m, and have just been appointed as disposal agents of an office building in Islington for £1m.
 

Bank Valuations


Our Valuation Department in general is also busy, albeit at the lower end of the market.  However, we are experiencing high volumes in this sector.  In the mid to large market, we are also busy carrying out re-valuations for Banks, however there does not appear generally to be an appetite for lending at this level, particularly in the development sector.

A recent upsurge in interest in hotels, particularly in London’s West End, has seen Copping Joyce’s Valuation Department instructed on five hotel valuations within the last 3 months.  These range from hotels of between 30 and 40 rooms in the East End to 20 and 40 room hotels in Pimlico and the Victoria areas of London’s West End.  The Head of the Valuation Department, Richard Alford BSc MRICS, reports that hoteliers have benefitted, particularly in the West End, from the weak pound against the Euro, with an influx of tourists seeking accommodation in the economy end of the sector, in particular.
 

Landlord & Tenant Department

In this department, we have recently secured some large instructions, ranging from office buildings in Islington comprising approximately 60,000 ft2, to a 10,000 ft2 office building in Victoria and an 8,000 ft2 office building in Clerkenwell.  Several of these matters we have had to take to third party, as there appears to be a reluctance by certain landlords to settle deals.

This side of our business, which is run by David Burlinson, ex E A Shaw, and Donaldsons, has now grown organically and David will be joined by another surveyor who we are currently trying to recruit.
 

Commercial Agency Department


Copping Joyce have recently appointed Jamie Levy as our new Head of Commercial Agency, he has a number of years worth of experience in the city fringe and surrounding areas.

Our Commercial Agency Department has probably suffered the most from the general recession, with a severe downturn in the number of enquiries and transactions over the past 12 months.  However, there does appear to be a slight increase in enquiries lately, but this Department in general is benefitting from instructions via the Insolvency and LPA side of our business, with disposal of freehold and investment assets.