iPads introduced in Britain
British developer Barratt Developments has launched a new building campaign targeted at first-time buyers: the iPad. Barratt plans to build 1,000 iPads a year on suburban and rural sites across Britain for prices that start at just 85,000 ($155,500). The flats are a meager 380 square feet, but are competitively priced and appeal to a specific segment of the market, according to the Telegraph. The iPad, meant to appeal to young homebuyers and university students, could catch Apple Computer’s eye before it gets a big following with buyers. Apple has plenty of practice defending its trademarks, most recently resolving a legal dispute with the Beatles over the Apple name.
Does a World Cup win help real estate score?
Winning soccer’s World Cup may give a temporary boost to the champion nation’s real estate market. According to a report released last month by Jones Lang LaSalle, an analysis of World Cup winners between 1980 and 2005 showed “no immediate relationship between success on the field and real estate performance.” However, the report did mention short-term effects of a World Cup win on real estate. The report notes that after wins in 1966, 1974 and 1998 property markets in England, Germany and France “seemingly benefited” and that, 75 percent of the time, runner-up nations saw a short-term increase in rental growth and returns.
Port warehouses becoming attractive
Investors are turning their attention to warehouse properties at ports all over the globe. As cargo traffic increases and with the possibility that the United States will start inspecting more containers, port-side property has become more appealing to investors. According to the International Herald Tribune, cargo traffic was up 52 percent worldwide between 2000 and 2005. Although the increase can largely be attributed to Chinese exports, port traffic has increased in many parts of the world, spurring the need for more warehouses and distribution centers at ports all over the globe.
REIT-like investments grow abroad
The introduction of REIT-like investments is spreading. French regulators are getting ready to OK the launch of the country’s own version of real estate investment trusts, called Organismes de Placement Collectif Immobilier (OPCIs). Pakistan recently announced it will allow REITs to operate in September, and the Israeli financial services industry just introduced a similar type of investment instrument.
The Israeli REIT, or Keren (Hebrew for “fund”), is similar to U.S. REITs in that it sells shares backed by other less liquid investments, such as property or mortgage securities, but is required to invest at least 75 percent of its portfolio in Israeli real estate and must be listed on the Tel Aviv Stock Exchange. The French National Assembly is currently debating tax rules for the OPCIs, and the hope is to have the first OPCI operating by the end of the year. In Pakistan, where REIT laws are awaiting approval from the Finance Ministry, it is expected that six REITs will be operational within a year.