Mapeley

London's office market is set to see a further rise in values, according to George Soros's European property manager.
But at the Barcelona Meeting Point conference last week, Soros Real Estate Partners' managing partner Richard Georgi warned that the growth will be on the back of demand from the relatively risky financial services sector.
He said: 'Future development is largely driven by the financial sector. And some people might say that the stock market is perhaps overvalued at present.'
Georgi, who heads Soros's European $600m (�375m) Quantum Realty Fund, described the London market as 'hot' after having 'fully recovered' from recent downturns. But, hedging his bets, he said that making any firm predictions for London now is a 'tough call'. He said good-quality research backed up his view that London is still a safe investment.
Georgi also said the property industry should focus on southern Europe, rather than Asia, Russia, and other Eastern European countries. He was particularly enthusiastic about this 'sun belt', and said Spain may become the 'Florida or southern California' of Europe.
His comments coincided with the formation of a joint venture between Soros Real Estate and Barcelona-based Med Group International. As part of the deal, Med will act as Soros' exclusive investment vehicle in Spain. The pair plan to invest Pta50bn (�196m) in the tourism and leisure sectors.
At the conference, Georgi advised potential investors in Spain to avoid the residential or office sectors and to instead buy into the leisure sector. He said that in this area, major expansion will be fuelled by affluent older people with high disposable incomes, among other factors.
To date, Georgi has yet to invest any significant capital from Quantum Realty. But in the UK, the fund is part of the Mapeley consortium, which is one of the three shortlisted parties for the �2bn Customs & Excise and Inland & Revenue PFI project (news, 22 Oct, p3).

By John Welsh.



29/10/99 UK: SOROS AIDE BULLISH ON LONDON. London's office market is set to see a further rise in values, according to George Soros's European property manager. But at the Barcelona Meeting Point conference last week, Soros Real Estate Partners' managing partner Richard Georgi warned that the growth will be on the back of demand from the relatively risky financial services sector. He said: 'Future development is largely driven by the financial sector. And some people might say that the stock market is perhaps overvalued at present.' Georgi, who heads Soros's European $600m (�375m) Quantum Realty Fund, described the London market as 'hot' after having 'fully recovered' from recent downturns. But, hedging his bets, he said that making any firm predictions for London now is a 'tough call'. He said good-quality research backed up his view that London is still a safe investment. Georgi also said the property industry should focus on southern Europe, rather than Asia, Russia, and other Eastern European countries. He was particularly enthusiastic about this 'sun belt', and said Spain may become the 'Florida or southern California' of Europe. His comments coincided with the formation of a joint venture between Soros Real Estate and Barcelona-based Med Group International. As part of the deal, Med will act as Soros' exclusive investment vehicle in Spain. The pair plan to invest Pta50bn (�196m) in the tourism and leisure sectors. At the conference, Georgi advised potential investors in Spain to avoid the residential or office sectors and to instead buy into the leisure sector. He said that in this area, major expansion will be fuelled by affluent older people with high disposable incomes, among other factors. To date, Georgi has yet to invest any significant capital from Quantum Realty. But in the UK, the fund is part of the Mapeley consortium, which is one of the three shortlisted parties for the �2bn Customs & Excise and Inland & Revenue PFI project (news, 22 Oct, p3). By John Welsh.