Well, we're almost at the end of 2009 and what a year it's been eh? I've been running through the major political, economic and industry events over the past 12 months in my head and it can be quite overwhelming. It seems certain that there will be a bigger than usual selection of newspaper supplements covering this years major elections, bailouts, budgets, bankruptcies, protests, weather disruptions and goodness knows what else. For what it's worth, I'll be digesting the views of The Economist, The Irish Times & The FT on these issues over the next few days as the Torcana team takes a well earned break from our day jobs. 2009 - A Property Investment Review Before we do though, I'd like to give my own opinion on the changes I've seen in the property investment markets this year, plus a preview of the types of products we will be promoting from January onwards. Pretty much every property market has had a turbulent and record breaking year in some shape or form over the past 12 months, and a range of books (authoritative and otherwise) will no doubt be published about them in the new year. The following countries are the ones I've been paying most attention to. Ireland is certainly one of the worst affected. Sometimes that can lead to incredible opportunities, but sadly, I've no intention of investing any money in Irish property in 2010. Prices have fallen, but nowhere near enough, and the oversupply of very average quality apartments throughout the country is quite shocking. Yields are low, financing is difficult to get and the outlook is highly uncertain. Spain is no better unfortunately and its banks and developers seem hell bent on using their energy and resources to convince us that the market is levelling out and that prices are stabilising. The truth is the opposite and the unwillingness of these vested interests to take some tough medicine is forcing the entire economy into a slow and painful decline. The UK is home to a more diverse and interesting property market than either of the above. I see real value in well built city centre apartments in places like Birmingham, Manchester and Leeds. In London, indisputably one of the worlds great cities, a huge range of commercial and residential assets changed hands during the year. This trend of long term investing at discounted rates will continue in 2010 and the newly incorporated Torcana UK Ltd intends to source and broker a wide range of investments for our clients. Emerging Markets have suffered more than most this year. With the notable exceptions of Brazil, India and China their governments did not have the fiscal capacity to stimulate their economies and foreign direct investment all but evaporated. Both local and foreign property owners were faced with dramatic falls in property prices, and a shattered mortgage market that was previously dominated by foreign owned banks who had recklessly contributed to the property bubble. Many of these countries will successfully reinvent themselves as green investment hubs and manufacturing specialists, but I fear the days of significant Irish & British property investment are gone for at least 5-7 years. The USA is a vast country that has probably done more than any other to stimulate its economy and stabilise its property market. The willingness and determination of banks and insurance companies to force developers into liquidation and/or sell their assets at firesale prices was extraordinary. Torcana identified a very specific niche - well built and managed tenanted residential property in the state of Florida, and we invested major amounts of time, money and energy packaging these types of products for our clients. It was a very successful strategy, and we will continue to bring these and other types of US investments to you in 2010. Torcana in 2010 The new year will see even more people joining the Torcana team, and we have an exciting range of new products and services in the pipeline. Torcana Property In the USA, more tenanted, well built, well managed and high yielding investments such as Visconti will be released to our clients. We will also be promoting a small range of commercial products and bulk residential investments in the $2-10 million dollar range. In the UK, we will continue to source high quality city centre apartment developments in central and northern England, while catering to high net worth investors seeking prime residential and commercial assets in Central London. If you know somebody who you think might enjoy receiving these updates as and when they are released, please send us their details or ask them to subscribe via the website or by emailing investments@torcana.com. Torcana Financial Solutions Our financial services arm, Torcana FS is now fully up and running and the response from our first two newsletters has been terrific. Gerry Ward, our QFA with 20 years experience is on standby to answer all your questions and worries regarding your financial plans. Torcana Energy January will see the launch of our first solar energy investment. For quite some time, it has become apparent that many of the next decades most successful investors and entrepreneurs will come from this sector. Part of Torcana's medium term strategy is to both broker and invest substantial amounts of money in the renewable sector during the next two years. Our first alternative energy product will be a solar based product in Germany. It will be government backed, it will generate double digit returns and 90% non recourse finance is available.
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