Expert Agent Interview: Emerging Property - Magdalena Pecheanu

Share


  Emerging Property
   
http://www.emergingproperty.co.uk/
info@emergingproperty.co.uk
(UK) +44 203 287 8727

Magdalena Pecheanu

Interview

  1. Tell us a little bit about Emerging Property. Who are you and what kind of property investments do you provide?

Emerging Property are an experienced investment property consultancy based in London and Dubai. We have been operating for close to a decade and have a comprehensive team of professionals in marketing, business development, research and sales.

We focus on UK commercial property, predominantly student property, but do also provide specialist residential and overseas investments too.

  1. Why do you focus in your specific sector and location?

We are not specifically a UK student property agent, but our approach is to source investments that consistently deliver on both high yields and robust investor security.

There is currently a critical undersupply of purpose-built student accommodation (PBSA) across numerous UK cities and student numbers are growing.

The global mobility of students is also continually increasing and, with such highly regarded educational facilities, the UK is a major beneficiary of this.

  1. What sets you apart from other sales agents working in the same sector?

Firstly, we are the exclusive global master sales agent of the only NHBC-registered student developer. This is particularly important on new-build developments, with our investors benefiting from 10-year build warranties and unprecedented build quality.

We are the only company providing 10% NET Guaranteed Income for 10 Years. This is proven and based on our unique and established business model. Not only does this represent the highest yields in the sector, but also ensures a fully flexible exit strategy.

Emerging Property are the only agents to have delivered all our student developments on schedule, with all rooms pre-tenanted and income paid as promised.

  1. How are such impressive yields possible? Is there not an element of risk?

It would be naïve to suggest that any investment is completely devoid of any risk. But, through the establishment of a robust business model, we have been able to successfully manage the risk profile of our investments.

Such yields are possible because we have a professional team working with the sector’s leading developer to source prime development sites in cities where we have identified sustainable demand.

The quality of our developments is unprecedented and this further ensures high demand and 100% occupancy. The key to our success is to satisfy all stakeholders - the investors, the students, the developer, the management company and the local council.

  1. Who are your typical buyers? Do they tend to be local or international?

The UK student sector as a whole attracts quite a balanced investment interest from the UK and overseas. As a company, we have also witnessed this. UK student property is open and attractive to investors from all over the world. With offices in London and Dubai, we are able to reach clients globally.

  1. What is the sales process? How do your clients approach you and how involved are they in the day to day management of an investment?

All of our investments are completely hands off. Once the purchase has been made, investors can simply wait for the income to be paid into their bank accounts.

The way that individuals contact and communicate with us varies from person to person. We provide tailored consultations, with a focus on individual preference and expectation.

We have worked hard to develop a fully transparent and straight forward sales process, ensuring that our investors are always positioned to make informed investment decisions.

  1. You touched upon this earlier, but what are the key trends making investment into student property so attractive at the moment?

The key trend is increasing demand. There were record university intake levels in the UK in 2014, catalysed by new government legislation which opened up a further 30,000 student places.

In 2015, the previous intake caps will be removed altogether. This is expected to result in a further 5% increase in intake levels nationwide.

Compounding the increased demand is the move by numerous city councils to limit the provision of HMO licences. Traditionally home to tens of thousands of students, this move fundamentally leaves student halls and PBSA as the only options.

  1. If there are five key things you would advise investors to look for in student property, what would they be?

  1. Experience of the Developer
  2. Flexible Exit
  3. Guaranteed Income Period – the longer the better
  4. Asset-Backed Contracts
  5. City Centre Location – Just to add, when it comes to location, investors need to reject a lot of their preconceptions about prime cities. Often, the best returns are available in regional towns and smaller cities, not the major cities, and especially not London, which struggles to return a profit at all.

 

  1. And, on the other side, which 5 things would you advise investors to look out for?

  1. Inexperienced Developers
  2. Guaranteed Buy-Backs – not beneficial
  3. Short Guaranteed Income Periods
  4. Poor Exit Strategy
  5. Lengthy Development Periods

 

  1. As we approach the end of the year, what was your experience in 2014? Key milestones?

2014 was a very successful year for us. We provided numerous investors with sector-leading returns and completed all our developments on schedule.

We have developed our team and now have a dedicated marketing department. This helps to ensure that our clients receive all the information they require to make informed investment decisions.

Our new website was launched last month and this also contributes to the experience of our investors.

  1. What do you predict will happen in the property market in 2015? What investments do you have in the pipeline?

Certainly we won't be remaining static or rest on our laurels. We will, however, be continuing to develop what has been a hugely successful investment model.

We will continue to work with the UK’s best developers, maintain a focus on UK student property and develop the services we provide to our clients in all areas.

With the various developments in the UK student sector in 2015, we certainly expect to be rewarding many more investors with great investment returns next year.

Agent Profile

  Emerging Property
   
http://www.emergingproperty.co.uk/
info@emergingproperty.co.uk
(UK) +44 203 287 8727
Share

Comments

There have been no comments made on this article. Why not be the first and add your own comment using the form below.

Leave a comment

Please complete the form below to submit a comment on this article. A valid email address is required to submit a comment though it will not be displayed on the site.

HTML has been disabled but if you wish to add any hyperlinks or text formatting you can use any of the following codes: [B]bold text[/B], [I]italic text[/I], [U]underlined text[/U], [S]strike through text[/S], [URL]http://www.yourlink.com[/URL], [URL=http//www.yourlink.com]your text[/URL]

Copyright © 2018 Propertyshowrooms.com