Commercial property people

Here is a roundup of some of the property news that we found most interesting during this week, in no particular order (sorry DTZ).

Property Sector and Economy

• DTZ Finances: Real estate adviser DTZ posted a full-year pre-tax loss of £35.1 million in the year to April 2009 following restructuring costs and an 18.4% decline in revenue to £364.1 million.  DTZ’s Group Chief Executive, said: ‘ The changing economic landscape has meant that this year has been a period of adjustment and adaptation, not just to ensure that we are better placed to deal with the current industry-wide reality, but also to create a more stable platform for future growth. Difficult decisions have had to be taken, but, throughout, the Group’s future has been the guiding factor.’ ‘Since January, we have taken aggressive action to reduce operating costs, rationalise headcount and enhance the discipline within our budgeting, marketing and reporting processes.
• Olympics London 2012: Consultants tasked with keeping the bill for the London Olympics under control cost the taxpayer £151 million last year, including a £60 million bonus, it was revealed yesterday.   CLM, a consortium of surveyors overseeing the £8.1bn Olympic construction project, received the fee in a year when the taxpayer was forced to bail out the Athletes’ Village and the media centre after the collapse of a private financing deal. The amount was nearly double the £87 million previously paid to the consortium, which includes Laing O’Rourke, the developer, Mace, the British management company, and the programme manager CH2M Hill.
• European Property Investment: Investor sentiment has stabilised and re-pricing has found a floor, according to a mid-year update from LaSalle Investment Management on the European commercial real estate market. There is also evidence that there is increasing competition, particularly from foreign buyers attracted by the weakness in sterling and the benefits of the UK lease, the report said.   LaSalle believes that occupational demand prospects look bleak across all commercial real estate sectors, but despite lower consumer expenditure, retail still provides the best investment prospects due to its defensive qualities.
• Land Securities – Signs of Recovery?: Hopes of a recovery in the property market were boosted today as Land Securities indicated that interest from buyers was picking up.   It said that falling prices were engendering “growing investor interest”, and reported that while the vacancy rates of its commercial properties were still rising, businesses were once again becoming more interested in leasing new premises.

Property People and Property Jobs

• Clive Dutton OBE, director of regeneration at Birmingham City Council, is leaving the city to work on the Olympic legacy for the London Borough of Newham.   He will take up the role as executive director for regeneration, planning and property at Newham, which is the host borough of the 2012 London Games. Dutton, 56, has worked for four years in Birmingham, responsible for projects including the Big City Plan, the £193m Library of Birmingham and the £600m plans for New Street Station. Dutton said: ‘There are very few jobs in the world that would have enticed me away from Birmingham, a city I genuinely love, but the draw of helping to shape the country’s Olympic legacy was one I simply could not turn down”.
• The British Council for Offices (BCO) has formally welcomed Mike Hussey as its new president. Hussy, the former head of Land Securities’ London portfolio, took over the post from Nicholas Ridley at the BCO’s Annual General Meeting in London this week.
• The Crown Estate has appointed former John Lewis chairman Sir Stuart Hampson to take over from Ian Grant as chairman after he retires on 31 December.   Hampson’s appointment will take effect from 1 January 2010 for a term of four years. He previously spent 14 years as chairman at John Lewis Partnership, was president of the Royal Agricultural Society of England in 2005, and was knighted in 1998 for services to retailing.
• Peter Hall, former director of agency at CB Richard Ellis’ Southampton office has set up a commercial property consultancy, Hall & Kirkwood.   The Hampshire-based consultancy will provide services to occupiers, developers and funds across the south coast. Hall has spent six years in Portsmouth and Southampton as an agent with CBRE and Austin Adams.

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