time to INVEST IN LONDON

an opportunity to develop property in the world’s capital

INVEST IN LONDON

CONTENTS

introduction

london overview

kreado services

collaboration profile

profile

a capital place for investors

how we can help

sidell gibson architects

london by numbers

medium scale case study

key people

top 10 reasons to invest

project process

large scale case study

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“You find no man, at all intellectual, who is willing to leave London. No, Sir, when a man is tired of London, he is tired of life; for there is in London all that life can afford.”

Samuel Johnson (English poet, critic and writer)

View of the Thames River with the London Eye and the Houses of Parliament 5

introduction

profile

kreado is a UK-based company located in central London provid-

ing consulting services for property development and architec-

tural design.

As London is considered the “World’s Capital” for many industries,

with significant foreign-interest activity easily sustained within, it is

the ideal location to invest in the property sector.

Development opportunities arise within this high-speed business

environment at a spectacular rate.

We act as a representative to our clients abroad for their develop-

ment projects in London and monitor the entire process that is par-

ticular to the building industry in the UK. We ensure that the investor

benefits from a profitable return and also enjoys a rich experience

through the design process.

This brochure is meant to give an impression of “why” and “how”

to approach investing in London property and express the services

that kreado can provide to help.

contact

Holford Mews,

Cruikshank Street

London, WC1X 9HW

United Kingdom

+44 (0) 203 602 3181

www.kreado.co.uk

info@kreado.co.uk

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INVEST IN LONDON

introduction

Alper has practiced architecture in the UK for over a decade, working on presti-

gious high-end residential, commercial and mixed-use schemes. In 2008 he co-

founded kreado to help clients abroad develop their investments in real estate

within the UK.

Alper Gohkan ERDEM M.Sc., B.Arch, Managing Director

Dogan KARALAR M.B.A., BE.con, Managing Director

Gavin FUNG BSc(Hons), DipArch RIBA, ARB, MRIAI, Associate

Anthony KWAN B.Arch, B.E.S., Associate

Dogan is an economist who has developed businesses in Turkey and the UK.

As cofounder, he represents the financial components of the company and is

responsible for market research and analysis. He has created close relationships

with leading property agents in London to find the best value for potential de-

velopments.

Gavin is a chartered architect with over 17 years of experience in master plan-

ning, urban and architectural design and has worked in the UK, Ireland and

Hong Kong. He specializes in environmental design engineering. Gavin’s highly

sustainable approach has won several awards for its implementation in housing

schemes.

Anthony is responsible for much of the creative aspects of the company includ-

ing architectural design, graphic design, marketing and visualization. With over

8 years of architecture work in the UK, in addition to 6 years international experi-

ence, he can design and deliver schemes at an exceptional speed.

key people

Our team is a composition of talented individuals with comple-

menting skill sets. Our extensive experience in varying sectors al-

low us to provide a quality service to our clients that is a unique

combination of financial savvy and design excellence.

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london overview

a capital place for investors

The UK capital has opportunities for all investors: from those seeking

core returns to those with an appetite for risk. Their enthusiasm is

strengthened by London’s simplicity, transparency and efficiency.

International investment is a solid feature of London’s property

market, maintaining its presence even in the depth of the financial

crisis – overseas investors spent almost £10bn on commercial property

in 2008 and 2009. Overseas buyers accounted for half of all investment

into central London in the first half of 2011. We are confident that this

trend will continue.

One Hyde Park,

located in Knightsbridge, London,

completed in March 2009,

by Project Grande (Guernsey) Limited

The Shard,

located in Southwark, London,

completed in July 2012,

by Sellar Property Group

© C

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nd

Ca

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INVEST IN LONDON

london overview

top 10 reasons to invest

reliability and low risk

predictability

international high demand

with over 50 nationalities

investing in the property

market

prime triple-A credit rating

majority of property invest-

ments are from overseas

and independant from the

general UK economy

sustained demand from UK

financial sector buyers

insufficient property supply

attractive tax regime for

overseas investors

simplicity and efficiency of

the UK legal system and mar-

ket practices

cash buyers, not

dependant on mortgages

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The Shard,

located in Southwark, London,

completed in July 2012,

by Sellar Property Group© T

he

Vie

w F

rom

Th

e S

ha

rd

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© Renzo Piano Building Workshop 11

75%

480

15.2m

7.83m

£11.7bnThree quarters of Fortune 500 companies

have a London office.

Investment volumes reached £11.7 billion, 41% ahead

of the 2011 annual total. Activity has been driven by

overseas equity, notably Asian investors accounting

for 20% of the total, the highest on record.

London is home to more than 480 overseas banks, more than any other city in the

world. There are more Japanese banks than in Tokyo and more US banks than

in New York. More than half of the businesses in the FTSE 100 and over a fifth of

Europe’s largest 500 companies have their headquarters here.

London continues to be a vibrant

tourist destination, attracting 15.2

million international visitors in 2011,

3.4% more than in 2010.

Source: The BNP Paribas Real Estate Guide; Jones Lang lasalle The Central London Market Q3 2012

London’s population has grown every year since 1998 and stood

at 7.83 million at the end of 2010. The upward trend is expected

to continue until 2031.

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London by Numbers

UK House Price ForecastsSource: Jones Lang LaSalle, Nationwide

It is presently a great time to make an invest-

ment in the UK property market as house pric-

es rise immediately from the time of purchase

at a significant and reliable rate.

Central London House PricesSource: Land Registry

During the recession central London

house prices showed great resilien-

cy proving that it will remain strong

through times of instability.

UK GDP Growth Above Trend by 2013Source: Jones Lang LaSalle, Oxford Economics

The UK economy is recovering from the recent

recession. This recovery is largely fuelled by

London’s business confidence.

© Jason Hawkes

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kreado services

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how we can help

Our team is assembled to successfully manage and complete ev-

ery stage of a building project for investment in London. We can

be involved from the onset of the process to the very end. Among

other responsibilities, we are adept in searching sites to satisfy our

client’s needs, negotiating contracts, appointing solicitors and

third parties, testing schematic designs, creating production draw-

ings, conducting tender actions, handling contract administration

and finally selling the development.

We closely initiate and monitor these key operations on behalf of our

clients to achieve impressive and controlled results.

INVEST IN LONDON

kreado services

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project process

The property development process is

unique to every project and client but

can be generally summarized by this

diagram, which is the framework for

our practice.

BRIEFdetails of our client’s

requirements are essential to search for

the right project

TENDER

SALE

MARKET RESEARCH

we especially concen-trate on “off-market”

projects

FEASIBILITYinitial study of the scheme

PRODUCTIONdetail design of the entire scheme

MARKETTING

CONSTRUCTION

BUYINGformal process that can be shortened for “cash buyers”

OFFERoffers are placed on

behalf of the client andnegotiations begin

DESIGNevaluation of the general

design to suit our client’s needs

kreado services

medium scale case study: chester street

This medium scale development opportunity is a Grade II Listed

Freehold house in Belgravia. It benefits from having full planning

permission for significant upgrades on the property. In order to

eliminate our client’s risk on revenues, we aim to develop permis-

sion granted schemes that shorten the overall period of the in-

vestment. This particular example is minutes away from London’s

well-known embassies zone. The planning permission allows for ex-

tensions in the rear of the house, the construction of a basement,

and further amenities such as a new lift, garage, swimming pool,

and extra terraces.

The new gross internal area (GIA) would be 7,000-7,250 sq ft; with a

potential sale value of £2500-£3000/sq ft depending on the interior

specifications. Our estimate of sale is over £20 m, with a return on

investment ratio above 50%.

Basic Financial Analysis

Site Purchase Price: £ 9.5 m

Project Cost*: £ 4 m

Estimated Sale Price: £ 21 m

Return on Investment: %55

*including construction, services,

legal fees

street view of

existing property; drawings of

proposed changes16

INVEST IN LONDON

kreado services

large scale case study: kingsway

This prestigious development project is centrally located opposite

to the London School of Economics. Representing a rather large

scale development opportunity in London, the building now fea-

tures 13000 m2 of mainly office accommodation. High-spec resi-

dential units are located at roof level and reputable restaurants

are at ground and basement levels.

The developer currently rents all floor area for a yearly income of

£8M. This generates a very successful 13% yield as the overall de-

velopment costs were £60 m including property purchase, con-

struction and services.

This particular case is a good example of how to develop an exist-

ing building in central London by retaining the façade, rather than

finding empty sites away from Central London.

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collaboration profile

sidell gibson architects

kreado and Sidell Gibson Architects collaborate on projects that

demand high levels of resources and coordination. This relation-

ship allows an expanded team of professionals to respond to our

client’s requirements.

Sidell Gibson Architects has been practicing in the UK for the last

35 years, holding many prestigious awards for its successful proj-

ects, many of which are located in central London. Mainly spe-

cialized in office and residential-use, SGA is capable of delivering

complex mixed-use schemes such as the recently completed,

award-winning, One New Change project located adjacent to

London’s cherished St. Paul Cathedral.

Bartholomew Lane, London

One New Change, London18

INVEST IN LONDON

Holford Mews,

Cruikshank Street

London, WC1X 9HW

United Kingdom

+44 (0) 203 602 3181

www.kreado.co.uk

info@kreado.co.uk