Suchergebnisse

Quality and profit are often considered to be connected. The property
market is one in which the concept often arises. For example, the
definition of prime property is a quality judgement. In property
development, the production of high‐quality property may be thought to
improve returns, or to reduce risk. Considers the question whether (and
if so, how) quality in property development (excluding site factors) is
likely to lead to high returns. Recently published work defines quality
as resistance to depreciation, where depreciation is defined in purely
financial (return) terms. Fully considers this work, which concentrates
on offices and industrials. Extends this work, describing new research
which considers the application of the relevant concepts and quality
definitions to shopping centres. Quality and cost are also considered to
be connected. In property development, high construction costs may be
expected to produce quality. This produces a complex subsidiary question
concerning this relationship, which is also addressed here.

Discusses the attractions of property to institutional investors.
Describes the evolution of future markets from forward contracts in
commodity markets and financial and stock market index futures to the
current UK proposal for property index futures. Concludes that property
professionals should make every effort to understand and develop the
proposed market in a way which will benefit property investors most
effectively.

Property investment risk is traditionally accounted for by valuers in a risk‐adjusted discount rate approach, although this term, popular in mainstream finance, is rarely used. This paper shows that RADR is but one of several risk adjustment techniques that may be employed within an explicit cash flow framework. It explains how a certainty equivalent technique may be used in an objective manner by use of standard deviation analysis, and develops a new technique for use in the UK prime market known as the sliced income approach. The paper goes further by setting risk adjustment (deterministic) techniques within the wider context of risk analysis and compares a simple probabilistic approach and sensitivity analysis with these techniques for use in property investment appraisal. A case study is employed in illustrations.

The aim of this paper is to examine the degree to which it is possible or practicable to make the analysis and valuation of property investments an explicit exercise. This is in direct contrast to the closed implicit nature of the practice which currently prevails, and which is epitomised by the use of the 'all‐risks yield' as a single gauge of the complex relationships of advantages and disadvantages within a particular investment. To what extent can the 'all‐risks yield' be purified, and to what extent will comparison with non‐property investments be facilitated as a result?