Valuations for Lenders Our Specialist Area of Business. William Newsom Head of Valuation, Savills Commercial Limited

Transcription

1 Valuations for Lenders Our Specialist Area of Business William Newsom Head of Valuation, Savills Commercial Limited

2 Presentation Contents Savills Corporate Profile Commercial Valuation Department Areas of Expertise Why instruct Savills?

3 Savills Corporate Profile July 1988 Savills plc listed on the London Stock Exchange 2006 Ranked number 1 (see over) 98 offices in UK; 25 in Europe and 36 in Far East and Australasia, etc. Savills commercial UK turnover in 2006 was 189.1M (56.4% of total UK company turnover)

4 No. 1 by turnover July 2006

5 No. 1 by turnover June 2006

6 No. 1 employer May 2006

7 Savills Commercial Limited - UK Fee Income by Product Area 2006 Savills accolades: Investment 33% Voted Investment Agent of the Year 2005 (and 2003) Property Management 47% Voted Residential Development Agent of the Year 2004 Agency Professional Services (inc. Valuation) 7% 13% Winners of Industrial and Retail Agency Teams of the Year North West Property Awards Nominated as Professional Agency (Valuation) of the Year 2006 Nominated as Scottish Professional Agency (Valuation) of the Year 2006 (winner to be announced in May 2007)

8 Commercial Valuation Department Total staff in London of 38 Total billing in 2005 of 10.5M Plus commercial valuers in Edinburgh and Manchester, soon to open in Birmingham 11 Directors Core Directors average 15+ years service each 18 new staff in London over 2005/2006 We specialise in larger commercial property (above 5.0M). Often above 100M Minimum fee 4,000 per instruction

9 Commercial Valuation Department Analysis of Fee Income for year to 31 December % Loan Security Valuations 70% 60% 50% 40% 30% 20% Recurring Portfolio/accounts valuations Canary Wharf valuation Valuations for acquisition and disposal Litigation/expert witness 10% 0% Tax/compulsory purchase/other Note: Advised 58 lenders over the 18 months to 31 December 2006 (see over)

10 Commercial Valuation Department Client List - Lenders Top 20 Bigger Ticket Active Lenders Aareal Bank AG Abbey National Treasury Services Plc Anglo Irish Bank Corporation Bayerische Landesbank Bristol & West plc Eurohypo AG Fortis Bank SA/NV Helaba HSH Nordbank AG HVB Real Estate Capital KBC Bank NV Morgan Stanley Dean Witter Nationwide Building Society Rothschild & Sons Ltd, NM Württemberger Hypo NOTES: 1. There are 58 clients listed. Bank of Scotland Plc Business Banking Specialist Property Finance, London Specialist Property Finance (formerly Birmingham Midshires) Specialist Property Finance, Edinburgh Corporate Banking Structured Property Finance (formerly Halifax plc) Corporate Banking, Edinburgh Joint Ventures Corporate Banking Infrastructure Finance and Project Finance London Banking Centre The Royal Bank of Scotland plc Infrastructure Finance Group Corporate Banking London Property and Construction Property Finance Group Corporate & Institutional Banking Real Estate Finance Group Structured Property Finance Group 2. These are the lenders to whom Savills Commercial Ltd has provided valuation advice over the 18 months to 31 December This list includes providers of mezzanine finance and equity participation, together with finance lessors and our clients for Stock Exchange and securitisation valuations. 4. Clients of our Hotels and Residential Valuation Departments are not included. Other Parts of UK Clearers Ahli United Bank (UK) plc Barclays Bank plc Specialist Property Finance Team Barclays Private Banking Ltd Cooperative Bank plc Coutts & Co HSBC Bank plc Corporate and Institutional Banking, Property and Construction Finance HSBC Republic Bank (UK) Ltd HSBC Bank plc Corporate, Investment, Banking and Markets, Asset and Structured Finance Lloyds TSB plc Lloyds TSB Corporate, Property Finance Singer & Friedlander Ltd Other Irish and Scottish Lenders Allied Irish Bank (GB) plc Bank of Ireland Private Banking First Active plc IIB Bank Ltd Irish Nationwide Building Society Other German Lenders AHBR Deutsche Bank AG Private Capital and Asset Management Deutsche Hypo DZ Bank RheinHyp Westdeutsche Immobilien Bank Other International Lenders Alpha Bank Erste Bank Investec Bank (UK) Ltd Israel Discount Bank Ltd Societe Generale North American Lenders Citibank Private Bank, The Citicorp Alternative Investments European Real Estate Office Credit Suisse Private Banking Lehman Brothers International (Europe) Ltd

11 Our Geographical Area of Practice -UK London and South East Elsewhere in the UK larger properties that are traded in a national context Note: Savills has local commercial representation in Birmingham, Bristol, Cambridge, Chelmsford, Edinburgh, Glasgow, Leeds, Manchester, Norwich, Nottingham, Oxford, Southampton and Wimborne (13 locations outside London) Also Ireland acquired Hamilton Osborne King in June 2006

12 Office Locations -UK and Ireland Brechin Perth Glasgow Edinburgh Ayr Savills Commercial Offices SavillsLand & Property Offices Associate Offices Savills Hamilton Osborne King Limerick Dublin Belfast Carnforth York Leeds Manchester Wilmslow Lincoln Newark Nottingham Stamford Cork Tavistock Exeter Hereford Telford Solihull Banbury Birmingham Huntingdon Norwich Southill Cambridge Ipswich Harpenden Summertown Bishop s Stortford Chelmsford Beaconsfield Windsor LONDON Sunningdale Oxford Cirencester Clifton Henley Bristol Bath Farnham Esher Micheldever Guildford Salisbury Horsham Winchester Wimborne Southampton Canford Cliffs Sevenoaks Cranbrook

13 Commercial Valuation Department Areas of Expertise - 1 Offices More than 50% of our turnover - not just central London, but also Western Corridor, Greater M25 area, East Anglia, East and West Midlands, Manchester and over 20 European cities all with published research reports Retail Retail warehouses and parks Shopping centres and supermarkets specialist advice on the entire process, i.e. site purchase, town planning, development, lettings, investment, rent reviews

14 Commercial Valuation Department Areas of Expertise - 2 Development Land Approx. 1/3 of the fee income of the Commercial Valuation Department Commercial, residential and mixed use sites: the full range Specialist development and planning consultancy departments Residential Big into new build ASAP Affordable and Student Accommodation Projects National Leaders Mixed Use Market leaders in mixed use We bridge the commercial/residential divide Multi-disciplinary practice enables us to advise on large scale projects, which invariably are mixed use including urban regeneration

15 Commercial Valuation Department Areas of Expertise - 3 Elsewhere in Savills where we genuinely believe we are leaders in the field Industrials larger industrials and warehouses Hotels agency and valuation teams Commercial Leisure Rural Leisure (and esoteric properties) Social Housing stock transfer valuations Healthcare Oil Industry/Petrol Stations/Linear Projects Overseas.

16 How can we help you? Introductions to deals through our brokers, Savills Private Finance Desktop valuations within 24 hours Research publications and other market information (sent by ) Commercial approach to valuation But maintaining our independence and objectivity throughout

17 Why instruct Savills? - 1 We are in the Market Valuations are co-ordinated with other departments (investment, agency, professional, research, etc) Independent Valuations for Lenders Our specialist area of business We act for all the main lenders Emphasis on Relationship and Personal Service Understanding our clients requirements through dialogue Advice for the risk assessment process

18 Why instruct Savills? - 2 Reputation Our universal acceptance to lenders is helpful for syndication purposes Likewise to the rating agencies for securitisation purposes Quality of Service Our clients say clear reports that focus on the principal issues Quick turnaround, including initial advice/ desktops Many repeat clients We want to help our clients win the business We see ourselves as facilitating transactions Valuations are backed by the name

19 Savills Valuation Services Summary Savills Corporate Profile Strong commercial practice Investment Agent of the Year 2005 (and 2003) and Residential Agent of the Year 2004 Nominated as Professional Agency (Valuation) of the Year 2006 in England and Scotland Commercial Valuation Department Areas of Expertise Offices and retail Development property, including residential and mixed use Generally large properties nationwide Wide range of other specialisms Why instruct Savills? Quality of service many repeat instructions Valuations for lenders our specialist area of business

20 that s why

21 Commercial Valuation Department Areas of Expertise - 4 Experts in cashflowmodellingfor: Investment acquisition Complex valuations (e.g. Canary Wharf) Limited partnership/jvs PFI Projects Strategic advice/forecasting Securitisation

22 Commercial Valuation Department Areas of Expertise - 5 Key Valuation Issues The risk assessment process Void risk/reletting prospects Exit value Vacant possession value/site value Active management potential Future growth in values/forecasting