WPC News Center

India Giant Expands in GCC

2013-06-18T19:02:00Z

]]> India property conglomerate Indiabulls is expanding in the GCC, less than a year after it opened its first office in the region in Dubai.

The company says it will open offices in Bahrain and Saudi by the end of the year, as its looks to expand its financing and development profile in the region.

"There has been a growing demand from expatriate Indians for home loans and property acquisition," said Santosh Tandel, head ot eh MENA region for the company. "Given our pan India presence, Indiabulls' housing projects have evoked a tremendous interest among the NRI community."

The company already has a financing relationship with Doha Bank, which was formalized last year. The alliance offers mortgage loans to expat customers for acquiring properties in India. The company has similar alliances with banks and financial institutions in the UAE, Oman and Kuwait.

Our endeavor is to present end to end solutions to the expatriate segment giving investment options as well as financial solutions," Mr. Tandel said. "The idea is to reach out to the customers, offer convenience of dealing and comfort in decision making."

The drop in the rupee has created favorable exchange rates, sparking a surge in money from expatriates back to India.

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Al Capone's Palm Island Estate Sold

2013-06-18T18:25:17Z

]]> Al Capone's former Palm Island estate sold for $7.43 million, after undergoing several renovations and spending a year on the market.

Known for infamous crime sprees in Chicago, the Brooklyn native mob boss moved to Miami and purchased the 30,000-square-foot property for $40,000 in cash from Clarence Busch of the Anheuser-Busch family in 1928, according to NBC News.

Capone went on to build a large 30-by-60-feet pool, looking to have the biggest pool in the area. He also built the two-story cabana pool house, the guest house and a wall to guard the house, NBC News reports.

The 1922 Spanish-style house at 93 Palm Avenue is reportedly where Capone masterminded the Valentine's Day Massacre, according to Real Deal.

After a stint in federal prison in the 1930s for tax evasion, Capone returned to Miami where he could enjoy his mansion. The 6,077-square-foot, two-story, home features seven bedrooms with 100 feet of Biscayne Bay frontage. "Reminiscent of a fabulous boutique hotel...the pool, its cabana and private sandy beach area overlook Hibiscus Island and Biscayne Bay," according to Realtor.com

Capone lived in the house until his death in 1947. Since then the home has passed through a couple of owners and undergone several renovations while maintaining its "old Cuba, Havana style," NBC reported.

The new owners of the Mediterranean highly-profiled mansion have not been reported. The property was sold for $5.65 million in 2011, according to Zillow.

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UK Home Prices Report Yearly Increase

2013-06-18T15:25:35Z

]]> Home prices in the U.K. increased by 2.6 percent in April from the previous year, with London outpacing the rest of the country, according to data from the Office for National Statistics released today.

The year-over-year increase showed a 2.8 percent increase in England and 6.2 percent increase in Wales. They were offset by a 1.2 percent decrease in Scotland and a 0.8 percent decrease in Northern Ireland. (Although prices are declining at a slower pace in Ireland.)

Overall, the U.K. housing market is on the recovery track, with the London market as the frontrunner, data shows. Demand for housing in London is expected to outpace supply, causing home prices to continue their upward trend.

The average home price in London increased by 6.0 percent to £414,000 in April from a year earlier, compared to the average of £238,000 for the U.K., according to the ONS.

The U.K. housing market has received a boost from government programs aimed at increasing lending and mortgage availability.

"Schemes like Help To Buy and Funding For Lending have acted like a steroid injection for the mortgage market and made it markedly stronger than last year," David Newnes, director of LSL Property Services, told the Financial Times.

But average incomes are not keeping pace with the growing average price for homes, economists say. Combining that with people's hesitancy to sell for fear of losing potential profit is resulting in first-time home buyers facing a difficult time entering the property market.

In April, the average home price paid by a first-time buyer in the U.K. was £179,000, a 4.7 percent yearly increase, the ONS reports. For existing owners, the average price was £273,000, representing a 1.9 percent yearly increase.

Another measure showing a recovery trend for the housing market is the recent report from Rightmove showing a 1.2 percent increase in U.K. home sellers asking prices, pushing values to higher than £250,000 for the first time, Bloomberg reports.

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U.S. Housing Starts Jump in May

2013-06-18T15:15:35Z

]]> Housing starts in the U.S. increased 6.8 percent in May from April, providing more optimism about a general housing recovery.

The number of starts rose to an annual rate 914,000, 28.6 percent higher than the rate of 711,000 in May 2012, according to the Department of Housing and Urban Development statistics released today.

The number of starts was below a prediction of 950,000 by a Dow Jones Newswires survey of economists, according to the Wall Street Journal.

"The outlook for housing continues to brighten as builders respond to increased demand for new homes and rental apartments," said National Association of Home Builders chairman Rick Judson. "While challenges with regard to the cost and availability of building materials, lots and labor are still keeping the pace of improvement in check, both builders and consumers are more confident about their prospects in the current marketplace."

The number of building permits requested fell 3.1 percent to an annual pace of 974,000 in May. However, the number is 20.8 percent higher than the estimate of 806,000 a year ago.

The new report illustrates the steady recovery of the housing market. Yesterday, the National Association of Home Builders reported confidence in home builders reached a seven-year high.

After an "over-correction" in April, construction on multifamily projects increased 21.6 percent to an annual rate of 315,000. Out of four regions, the South reported a 17.8 percent increase and the West reported a 5.7 percent gain.

Single-family starts were unchanged for the month, but the number of permits issued rose 1.3 percent to 622,000 units in May -- the best pace in five years.

The housing market continues to benefit from low inventory and below-peak prices, although both measures continue to rise.

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Spotlight: Five Private Islands for Sale

2013-06-18T12:08:02Z

]]> Private islands are the ultimate status symbol. Water separates the owners from their peers-- and the cold cruel reality of the outside world. Surrounded by water, a home becomes a kingdom.

As far as personal kingdom fantasies go, it's reasonably obtainable. Magician David Copperfield has his own island. So do Richard Branson, Johnny Depp and Mel Gibson
At any given time there are dozens of islands for sale around the world. But the market has been hurting in recent years, with prices falling 50 percent or more for a decent island, experts say. An island may be the ultimate discretionary purchase--no one needs a private island--and the population of buyers is limited.

Big island transactions are rare these days, with the notable exception earlier this year of Qatar's Sheikh Hamad bin Khalifa al-Thani's purchase of six Greek islands for about €8.5 million ($11.1 million).

For shoppers slightly below the Sheikh's price range, here is a random sampling of five private islands for sale:

Tanera Mor
Scotland
$3.62 million
Owned by a single family since 1996, this 800-acre island is 1.5 miles off the northwest coast of Scotland, part of the Summer Isles archipelago. There are nine residential properties, a cafe, a post office and three jetties on the island. "The chance to own your own Scottish island is extremely rare," John Bound of listing agent CKD Galbraith told a reporter. "With Tanera Mor's thriving tourist enterprise coupled with being a truly spectacular place to live, we expect to receive a lot of interest as it goes on the open market."

James Island
British Columbia, Canada
$75 million
Telecom billionaire Craig McCaw owns this 780-acre, full-service island in Canada's Gulf Island archipelago. Amenities include an airstrip, six guest houses, 18-hole Jack Nicklaus-designed golf course and an imitation Western town. In the past it was used as an agricultural settlement and an "industrial plant and company town," according to the listing. Twenty percent of the island has been set aside as a nature preserve.

Lady Hamilton Isle
Port Alfred, South Africa
$1.36 million
The only private and singularly-owned island in the Royal Alfred Marina development on South Africa's "Sunshine Coast." The island covers more than 3,800 square meters and can be sub-divided. "One could give freehold title to different owners and create your own community," according to the listing. The previous owner built a mansion on the property with a pool, tennis court and clubhouse. But the house was destroyed by a fire.

Petra Island
New York
$19.9 million
The 11-acre island located on private Lake Mahopac.is controversial in architectural circles. Advertisements for the island describe the main house as designed by famed designer Frank Lloyd Wright, who reportedly once claimed the house would surpass his famous Fallingwater. Wright created the original plans for the house, but never built it; the current owner brought in an architect to realize the plans in 2008, a process that doesn't qualify the house as a "Frank Lloyd Wright," purists argue. But a 1,200-square-foot cottage was designed and built in the 1950s.

Sandy Cay
Abaco, Bahamas
$10.9 million
The 8-acre island in the Sea of Abaco has been developed as a resort. Only a 45-minute flight from Miami, the island incudes deep-water docks, a dive shop and a 5,400-square-foot main residence, according to the listing. But there's more. The deal includes five boats, a reverse osmosis water maker capable of producing 6,000 gallons per day and a 15,000- square-foot parcel of land with two docks and a boat lift in the harbor of nearby Man O War Cay.

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Aria Buys South Beach Property

2013-06-17T19:36:12Z

]]> Aria Development Group has purchased a 7,310-square-foot, two-story, multi-family property in Miami's famed South Beach neighborhood, with plans to redevelop the parcel into a 10,000-square-foot retail complex.

Aria principals Joshua Benaim, Tim Gordon and David Arditi, in partnership with Wexford Capital and 13th Floor Investments, paid $5 million for the 0.16 acre site located on Collins Ave., between 5th and 10th Streets.

"Aria Development Group recognized the property's potential for a 'higher and better use' in the shopping district," said Miguel Alcivar, an associate with CBRE's Private Capital Group who represented the property's seller, FCI Miami Beach One.

Aria is also the group developing 321 Ocean, a boutique residential development, in South Beach's South of Fifth neighborhood.

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Q & A: Is Now the Time to Sell?

2013-06-17T16:44:14Z

]]>
I'm trying to decide if I should put my home on the market. It is a condo in NYC. I hear inventory is low so it's a good time to list your home, but I am unsure what exactly that means for me as the seller.

Inventory levels are extremely low and the pent up demand for both condos and coops has had a very positive impact for sellers. Properties that are priced to sell are attracting buyers within days of coming on the market. Because of the demand, it is not unusual to have multiple buyers and "bidding wars." Hiring a real estate professional who can manage current market conditions and help you to achieve the highest and best price from the most qualified buyer is key to a successful transaction. While mortgage rates remain low, credit is tight and qualifying buyers is most important. If you need assistance in selecting a real estate professional familiar with your condominium, we will be most happy to assist you.

I am unsure if I should rent or buy an apartment. I'm not totally familiar with different areas of Manhattan and I am unsure what makes the most financial sense at this time. Is one market performing better than the other and can I get a better deal with a rental or a purchase?

Due to low inventory levels, market conditions thoughout Manhattan, are performing favorably. The Upper East Side, where there is more product, offers the best value in co-ops; as does Murray Hill and Gramercy Park. The areas that are more trendy, and have a lot of new construction, are more expensive.

Working with a real estate professional who has knowledge of the available listings and their history, will help you in making a decision. With mortgage rates still at record lows, it can be advantageous to buy now.

My husband and I bought a property on Long Island in 2009. We got the home at a fair price, however, since we have put so much money into the property. Every appliance has been replaced as well as hot water heater, washer dryer, boiler, new kitchen and all bedrooms. How do we decide what price to list the home at for sale in order to get some of our investment back?

Knowing the comparable sales in your neighborhood and what is currently on the market will be a good guide in helping you to decide how your home will fare in comparison to those with which it will compete when listed. Buyers today are more inclined to buy homes that have been renovated and updated, but it's all a function of marketing and pricing. Consulting a real estate professional who has a track record in sales in your area will save you a lot of time and, hopefully, get your home sold quickly.

My husband and I just sold our home and need to quickly find a new one. We saw one we liked, made an offer and think the people will accept. How fast can we realistically go to contract and close on the home? We are paying all cash and do not need a mortgage.

Once you have reached a price agreement it is important for you to consult your real estate attorney so that the proper due diligence is done prior to your going to Contract. You may want to have the house inspected and, because it is all cash, you may also consider having it appraised. Once your attorney is satisfied with his due diligence, a Contract of Sale and a mutually agreed upon Closing Date can be put into place quickly.

Dottie Herman is CEO of Douglas Elliman (www.prudentialelliman.com). If you have a real estate question for Dottie, please send it to; Reporters@WPCnews.com

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Tom Hanks Selling 'Legendary Villa'

2013-06-17T15:53:48Z

]]> Hollywood actor Tom Hanks and actress-wife Rita Wilson are selling the Spanish-style home in Pacific Palisades they've owned for 25 years for $5.225 million.

Built in 1929, the "legendary villa" has 1920s Hollywood glamour with elegant large-scale rooms, archways, frescoed ceilings and a sky-lit kitchen, according to the listing.

The four-bedroom, 5.5 bath, 6,289-square-foot classic home has a private beauty salon, a library, a loggia and a guest room. The master suite has a fireplace and terrace with ocean views.

The couple purchased the home in 1988 and is one of four California residences the couple owns, according to the NY Daily News. Three years ago they purchased a 14,513-square-foot contemporary house for $26 million also located in Pacific Palisades.

Mr. Hanks is known for his work in "Forrest Gump," "Saving Private Ryan," and "Castaway," among other films. He costarred with Mrs. Wilson in "Sleepless in Seattle."

Pacific Palisades is well known for its celebrity clientele. Comedian Larry David also recently listed his estate in Pacific Palisades.

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China Retail Draws Interest of New Fund

2013-06-17T15:35:10Z

]]> A Chinese asset management firm has raised $683 million to invest in Chinese retail property, defying critics who say the sector may be overbuilt.

Citic Capital Holdings has already invested $250 million of the fund in three projects, including a shopping mall in Changsha in Hunan province, one in Hefei in Anhui province and a third one in Shanghai, according to a company announcement. Construction is scheduled to begin in the third quarter for the last two projects.

Investors are increasingly looking to profit from China's growing consumer class. Data from CB Richard Ellis previously showed more than half of the world's shopping centers in development are located in China.

News reports have speculated that China may already face a glut of shopping centers, fueled by video of empty malls in some areas. But analysts believe there is still demand in many areas.

Recently, Carlyle Group invested in two shopping malls in the second-tier cities Suzhou and Hangzhou, the Wall Street Journal reported.

The Citic fund surpassed its original target of $600 million with institutional investors from the U.S., Europe, the Middle East and Asia, even with a tough fundraising environment, the company said.

Citic Capital plans to invest in four to five projects in second-tier cities using the new fund. It is the firm's fourth real estate fund focused on China and the first focused on retail, the company said.

A subsidiary of state-owned Citic Group, Citic Capital manages over $4 billion of funds.

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Home Builder Confidence Soars in the US

2013-06-17T14:32:48Z

]]> Home builder confidence has hit the highest level in seven years, as demand increases for new homes, according to data released today by the National Association of Home Builders.

The NAHB's Housing Market Index leapt eight points in June, the biggest one-month gain since August and September of 2002, the association reports.

The index hit 52 on the NAHB's scale, the first time it has crossed 50 since 2006.

"Surpassing this important benchmark reflects the fact that builders are seeing better market conditions as demand for new homes increases," said NAHB chairman Rick Judson. "With the low inventory of existing homes, an increasing number of buyers are gravitating toward new homes."

All three HMI components posted gains in June, including builders' perspective on current sales conditions, future sales and traffic of prospective buyers.

David Crowe

"Builders are experiencing some relief in the headwinds that are holding back a more robust recovery," said NAHB chief economist David Crowe. "Today's report is consistent with our forecast for a 29 percent increase in total housing starts this year, which would mark the first time since 2007 that starts have topped the 1 million mark."

The HMI three-month moving average was up in three of the four regions, with the largest growth reported in the South.

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Bahrain Bank Buys in London

2013-06-17T14:11:42Z

]]> Bahrain-based Venture Capital Bank has purchased a freehold residential development in Central London, the Islamic bank's first real estate transaction outside of the Middle East and North Africa.

The residential development is located in the Mayfair Conservation Area, close to Berkeley Square and Grosvenor Square. Mayfair Chambers includes a building under development for six luxury residences with an expected delivery date of April 2014, the bank said in a statement.

Home prices in central London have been skyrocketing in recent years, in large part due to interest from the Middle East, although there have been recent signs of a slowdown.

"Close to Oxford Street and one of the finest shopping streets in London; Bond Street, the development is underpinned by its prime location [in] Mayfair, which is considered to be one of the most prominent areas in London," VC Bank CEO Abdullatif Mohamed Janahi, said in a statement.

"This acquisition adheres to VC Bank's investment strategy which seeks to diversify the investment portfolio geographically and industry wise, while targeting high quality, stable assets with attractive valuations."

VC Bank is the first Islamic venture capital bank in the GCC and MENA region, according to the bank website. The bank recently reported a total revenue of $39.6 million with a net profit of $20.2 million for the 15 month period ending March 31. This compares to a loss of $58.7 million for the calendar year 2011.

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Analysis: The Myth of the US Housing Bubble

2013-06-17T12:33:14Z

]]> TV news pundits and bored property analysts are frantically debating the possibility that the U.S. is speeding toward another housing bubble, which will soon burst with catastrophic consequences for mankind.

Almost every day a release arrives from a consultancy or public relations firm eager to discuss bubbles. Each screams of the potential danger: "Is a housing bubble forming?"

The answer is, of course, almost universally, no. It's a ridiculous question and everyone knows it. But it makes for good time filler for CNBC, so we are subjected to endless quasi-serious bubble discussions.

By simple definition, there is nothing bubble-worthy about the current market. The term suggests massive, irrational pressure is inflating the market and it will soon burst in spectacular fashion. The U.S. real estate market of 2008 vividly illustrated the whole bubble concept. The collapse of the Asia market in 1997, when prices fell 60 to 70 percent in Hong Kong--that was a bubble.

No matter how you play with the numbers, the current market is a million metaphors removed from the concept of a bubble.

'The entire bubble concept suggests... the market is so crazed that everything will soon fall apart and prices will plummet.'

To start, there is no massive pressure building to buy homes. In most of the markets that posted double digit increases in the last year--including jumps of more than 20 percent in Las Vegas, Phoenix and Miami--demand was driven by bargain-hunting investors buying quality properties priced at historic lows.

That is evidence of a bottom in the market, not a bubble. When these bottom-feeders no longer believe homes are a steal, they will look for other sectors to exploit. But that won't destroy the market. It will simply be another stepping stone in the cycle toward normalcy.

In most markets, the data shows demand is returning to healthy levels. But the much-discussed inventory shortage is driving up prices. "The extreme heat in today's market is a short-term phenomenon, born of a temporary imbalance between supply and demand," Kiplinger explained in its recent bubble analysis.

The bubble concept suggests demand is so intense, prices are being forced to unhealthy and unsustainable levels--even though prices are still far below the levels people were willing to pay only a few years ago.

Meanwhile, there are several very clear demand-easing landmines visible in the near future. Mortgage rates are rising, which means the days of free money are over. And while the economy is improving, there is no evidence that a switch will be thrown and balloons and confetti will fall from the sky any time soon.

A bubble burst requires a pin prick, something so dramatic it will burst this pressurized market.

A total collapse of the economy would do it. But with the stock market at record highs, outside a few Ayn Rand enthusiasts few economists envision looming doom.

And there is no indication of any bubble-bursting rush of supply heading toward the market. In some cities, as many as 40 percent of homeowners are still underwater in their current mortgages, ensuring they are in no rush to sell any time soon.

Home builders are active again, but their new product won't hit the market simultaneously, except for Miami, where dozens of towers are in development. But Miami is not reality, as everyone knows. There are demand factors at work in Miami that have nothing to do with the rest of the world.

The entire bubble concept suggests a major disaster is brewing, that these prices are so irrational, the market so crazed, that everything will soon fall apart and prices will plummet and real estate executives will jump out windows.

Instead, every piece of data paints this as a market trying to find its equilibrium, a return to form of normalcy. The National Association of Realtors research department, which is often accused of putting a happy face on the numbers, forecasts prices will increase 8 percent this year and a modest 5 percent in 2014.

That doesn't sound like much of a bubble. Yet, we are still subject to lengthy bubble dissertations and cries that the sky is falling.

Maybe analysts feel guilty for not screaming about a potential bubble in 2007. It doesn't really matter, in the modern news cycle. There will be a buzz of analysis and witty banter on the talk shows. Everybody will shake their heads and issue papers with catchy bubble-related headlines. And then they will realize it's a silly conversation and they'll go back to talking about Kim Kardashian's baby.

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Interview: Jacky Teplitzky on the New Normal

2013-06-17T12:07:43Z

]]> Douglas Elliman associate broker Jacky Teplitzky has a unique perspective on the international home buyers driving sales on the East Coast. Her Jacky Teplitzky Team has sold more than a billion dollars worth of property in Miami and New York, with a special focus on high-end buyers from Brazil, Venezuela, Colombia, Chile, Argentina and Russia. A native of Chile who was raised in Israel, where she served as a sergeant in the Israeli armed forces. In a wide ranging interview, she talked to WPC about the recent changes in the market and doing business in the new normal.

What is not getting reported about the international business right now?

Jacky Teplitzky

I think what isn't being reported is that everyone is going back to real estate. Real estate was like a bad word in 2008 and 2009 because of the crisis and everybody was trying to find other vehicles for investment. They were buying gold. They were going back to the stock market. Now we are seeing a comeback of people investing in real estate.

I think everybody believes in a more tangible asset that you can actually touch and see and that's real estate. At the end of the day, yes we have ups and downs but we all known people have to live somewhere and in the long run the asset will appreciate.

What is different about the interest in real estate?

The interest has completely changed. Before it was mainly Europeans. Before the credit crisis we saw English, Irish, Spanish.

Now we're seeing, number one, is Brazilians in Florida. But Brazilians are also buying in New York. Number two are Argentinians buying in Florida and New York. Number three would be Venezuela. And, of course, each country has completely different reasons for why they are coming here. And then there are the Russians, don't forget the Russians.

Why they are coming here? Second homes? Investments?

All the above. The first thing was for their own use. Then they moved into investment property, residential. Now we are getting more inquiries about commercial property. They're asking about hotels. They are asking about office buildings. They are asking about retail.

How has it affected your business?

'In '06 and '07, if you had a body temperature, you would get a mortgage.'
- Jacky Teplitzky

Well, first thing, is I just added a commercial person to my team. And I am educating myself at a very fast speed about the commercial market here in Florida and also in New York. People look at you as a one stop shop. If they trust you in one item, they want you to trust you on others, so you have to be able to give them the service.

The second part is, I added people who speak different languages. I myself was born in Chile and raised in Israel so I speak four languages. But within my team we speak seven languages. So I added a Portuguese speaking person, I have a French speaking person. The whole idea is that real estate in the United States is becoming much more international.

How would you compare activity now to prior levels?

Price wise we are not at 2006-2007 levels. But activity-wise, I would say we are definitely going back to those years. But it is a different type of buyer. In '06 and '07, if you had a body temperature, you would get a mortgage. You could put 5 percent down and then you would get an apartment or investment property. Now you have to put in much more equity. You have to put between 20 and 30 percent equity. Not a lot of people have 20 to percent equity. South Americans are buying all cash, which is creating a problem for the local people who are living in Florida and living in New York. You are basically competing against the foreign buyers who have all cash and can close in 30 days. American buyers need a mortgage and it is still not easy to get a mortgage and they need more time to close.

Are you seeing bidding wars?

Absolutely. There is no inventory. In South Florida there was speculation it would take eight or nine years for the inventory to get absorbed. And here we are three years alter with no inventory. In any price level, in any area.

There is assumption we're only talking about luxury property with no inventory.

In all categories. And it is happening in New York the same way.

How do you reach those international buyers?

You need to build a referral business. If you do a good job for one person, that person talks to another person. The other way is to have contacts with local people in different countries, the people who manage the wealth on behalf of these people--the bankers, the estate planners, the lawyers.

How do you reach those people?

You have to do research. You see which are the private bankers who are stronger in South America and you can build a relationship. But this takes time. It doesn't happen overnight.

Anything else about the market that might surprise people?

I would say there is much less inventory than anybody thinks. Everybody thinks that we as brokers are saying there is no inventory to create hoopla. Lot of people think there is a lot of shadow inventory. But the truth is there is not a lot of shadow inventory. What we are saying is the truth.

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Jodie Foster Selling Hollywood Villa

2013-06-14T16:42:13Z

]]> Academy Award-winning actress Jodie Foster has listed her Hollywood Hills Spanish villa for $6.399 million.

The 6,060-square-foot, five bedroom, six-bath home is "the perfect refuge for those seeking the ultimate in privacy, security and style," according to the listing.

The home features an atrium entrance, step-down 638-square-foot living room, a high cathedral vaulted ceiling, French doors and a view overlooking the Century City skyline. It also features a large screening room with a bay window, master suite with a sauna and a kitchen with a Viking stove.

Outside, the villa offers a private rear gated driveway entrance, a courtyard pool and brick patio sheltered by high-reaching hedges.

Known for movies including "Taxi Driver," "Panic Room" and "Silence of the Lambs," Ms. Foster purchased the property in 1997. She is selling to move into a new home, according to the Wall Street Journal.

Built in 1935, the villa was previously owned by model and actress Cheryl Tiegs, who recently listed her own home in Los Angeles for $12 million.

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UK Investment Firm Targets African Property

2013-06-14T15:57:37Z

]]> Private equity company Actis LLP will invest as much as $1.5 billion in African commercial property, hoping to profit from the region's growing middle class.

London-based Actis plans to invest in shopping centers, office towers and industrial park projects to be finished in the next five years, according to Bloomberg.

Africa has one of the world's youngest and fastest-growing populations. Household expenditures on the continent are expected to grow 63 percent to $1.4 trillion by 2020, a McKinsey & Co. 2010 report said.

"We are seeing a shift in interest from South African brands to European retailers" who seek opportunities in fast-growing economies such as Nigeria, Ghana and Kenya, Kevin Teeroovengadum, Actis' sub-Saharan African real estate unit director, told Bloomberg.

Since 2003, Actis has raised $1.4 billion in seven Africa funds. Proceeds of an initial $155 million real estate fund already have been invested in malls and office buildings in Ghana, Nigeria, Kenya, Botswana and Mauritius, Bloomberg reported.

"We have leapfrogged to shopping centers of 25,000 square meters from existing small shops" in Nigeria and Ghana, Mr. Teeroovengadum said. "The idea was when you go into Africa, you benefit from middle-class growth."

Actis has partnered with GML, a Mauritian investment company, to invest in Indian Ocean Real Estate Co., which is developing a $1.5 billion town in the nation.

Part of the investment will come from proceeds of the company's second African real estate fund that raised $280 million in October, with the rest coming from commercial partners and loans.

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Parking Spots Selling for Big Prices

2013-06-14T15:32:59Z

]]> The bidding for the real estate started at $42,000 and hit $560,000 in 15 minutes. The coveted item--two rare tandem parking spaces in Boston's Back Bay, which were sold yesterday at auction for the record price by the Internal Revenue Service.

"It's like a diamond that comes to auction that you've never seen before, it's a gem," Boston realtor Ken Tutunjian told the local CBS station.

Around the country, parking spaces in restricted urban areas are increasingly drawing big prices.

In San Francisco a spot in the city's South Beach sold for $82,000 last week, according to the Associated Press.

Despite the price tag, it was seen as a good investment. A parking space can add value to a home or be rented out for as much as $400 to $450 a month.

A parking spot in the same building sold for $95,000 a few years ago.

"We had a very good response right out of the gate," Sean Sullivan with Climb Real Estate, which sold the spot, told AP. "It was only in the market two weeks."

The phenomenon is not unique to the U.S. In Hong Kong the average price for a parking space is $82,600; the record price was reportedly set in 1997 at $85,161.

Lisa Blumenthal, who lives in a multimillion dollar home in Boston, purchased the spots located behind Commonwealth Avenue after an unexpected bidding war.

"It was a little more heated than I thought it would have been," she told The Boston Globe.

The spaces were seized by the IRS from the previous owner, who owed back taxes.

While the median sales price for a single family home in Massachusetts is $313,000, the record for a single spot sold in Boston was $300,000 in 2009. Two tandem spots sold for $200,000 last summer on Commonwealth Avenue, according to the Globe.

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Median Price for a Home in San Francisco: $870,000

2013-06-14T14:27:08Z

]]> Although still far below their peak levels, home prices in San Francisco are returning to jaw dropping levels.

The median price for a home in the City by the Bay hit $870,000 in May, a 24.1 percent jump from the $701,000 in May of 2012, according to Dataquick.

Overall, the median price for a home in the nine-county Bay Area last month was $519,000, up 1.8 percent from April and 29.8 percent from $400,000 in May, 2012. That is the highest level since March, 2008.

The Bay Area median price peaked in the summer of 2007 at $665,000, before plummeting to a low of $290,000 in March 2009.

"In a year or two, we'll probably see in hindsight that a bounce off the bottom was faster and easier than later incremental gains in a more balanced market," said John Walsh, DataQuick president. "As it is, today's market is still re-establishing equilibrium. Among potential buyers there is clearly a sense that favorable factors are lined up right now in a way they may not be in a year, or three or five years."

The number of sales in the Bay area remained "below average" in May, rising 12.1 percent in May to 8,541, which was still down 4 percent from a year earlier.

But Northern California prices are far outpacing prices in Southern California. In Orange County, the high-priced area south of Los Angeles, the median price is $540,000, up from $435,000 a year ago.

The volume of Southern California sales hit the highest level in seven years, while prices reached a five-year high, Dataquick found.

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Exclusive: Inside Swire's Plans for Miami Hotel

2013-06-14T13:47:27Z

]]> Swire Properties' new East brand hotel in Miami's Brickell CityCentre development will include a boardroom that can seat 250 people on the 39th floor with "uninterrupted views of the bay," says Brian Williams, Swire Hotel managing director.

However, the brand's first hotel in North America, East Miami, will focus on leisure travelers, Mr. Williams told World Property Channel while in Miami working on details for the hotel. Acknowledging that Latin American customers dominate in downtown Miami, the brand's "eyes will be firmly focused on [the] south," to appeal to that market "especially when they come on their shopping trips," Mr. Williams said.

Brian Williams

The East hotel will anchor the $1.05 billion Brickell City Centre, the mixed-used project in downtown Miami developed by Hong Kong-based Swire Properties. It will be the first U.S. hotel outside Asia and the third worldwide for the East brand, a subsidiary of Swire Hotels.

The Swire hotel group is focusing on urban hotels in Hong Kong and mainland China. Current properties include The Opposite House, Beijing; The Upper House, in Pacific Place, Hong Kong; East, Hong Kong; East, Beijing and The Temple House due to open in Chengdu in 2014. The group is now testing the water in the west with the Miami location. Further expansion plans in North America will be evaluated based on East Miami's performance, Mr. Williams said.

Designed by Miami-based architects Arquitectonica with interiors by New York-based Clodagh Design, the hotel will offer 89 full-service apartments for longer stays common in Asia and Latin America, along with the 263 guest rooms.

With more than a year before the hotel opens its doors, Mr. Williams has recruited David Arraya, formerly of the Fontainebleau, as general manager. He will move to Hong Kong to learn the brand's culture before returning to Miami, Mr. Williams said.

Mr. Williams hope to create a youthful, non-stuffy atmosphere in the hotel with a younger staff. The current average age of the current 2000 employees is 27.

"It's about rethinking the processes," Mr. Williams said. "Like our restaurants and bars, some people associate five star hotels with formal dining but that's the last thing people want these days, people want informal dining of high quality."

The Miami hotel's restaurants won't have a dress code. "Everything is pretty informal" in Miami, he said.

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Top Ten Train Rides In the World

2013-06-14T12:04:46Z

]]> I have an admission to make. I should have titled this story "My Top Train Rides in the World." It's my column...and these are my (totally subjective) choices! So get your ticket punched, and settle in for a quick train ride around the world...

The Alaska Railroad rolls past the stunning Turnagain Arm. (Courtesy Nicole Geils/Visit Anchorage)

No. 10: The Flam Railway, Norway--This is the shortest trip on our list-under an hour. It'll take you from the mountain station of Myrdal down to Flam, traveling alongside the Aurlandfjord the entire way. Looking out the window, the Norway of travel posters comes alive, with deep gorges, dense-green forest, craggy peaks, and thundering waterfalls. The train moves slowly and even stops at some of the best views.

No. 9: Durango & Silverton Narrow Gauge Railroad, USA--Buckle up your chaps and your boots, pardner. Because on this ride into the Old West, you almost expect to see Butch Cassidy and the Sundance Kid galloping atop the surrounding ridges. And those ridges are spectacular. You'll be winding through deep, rugged canyons in Colorado's San Juan National Forest, on a narrow-gauge train with a coal-fired, steam-powered engines--exactly the way that miners, cowboys, settlers (and bandits) did.

No. 8: The Bernina Express, Switzerland/Italy--Traveling from Chur, Switzerland to Tirano, Italy, this is the highest rail crossing of the Alps, taking you from glaciers to gardens. You'll go over 196 bridges, through 55 tunnels, and around more spectacular switchbacks than you can count. And you'll pass unforgettable vistas of cottages and tiny villages dotting sun-dappled valleys below.

The mountains and savannahs of South Africa roll by The Blue Train

No. 7: Trans-Siberian Express, Russia-This may be the world's longest railroad journey, from the onion-domed churches and massive government buildings of Moscow to the other-worldly landscapes of Vladivostok in Siberia - 5,600 miles, seven time zones, and seven days. Along the way you'll pass natural wonders like the Ural Mountains, Lake Baikal, and the Siberian tundra. And - generally over some vodka and cabbage and meat - you'll get to know the Russian people.

No. 6: The Blue Train, South Africa--Since 1946, it's transported the privileged few through the mountains, deserts, savannahs and veldts between Pretoria, Cape Town, and Durban. Personal butlers see to your every need, and each suite has a video monitor allowing you to see exactly what the engineer is seeing. The Blue Train calls itself "A Window to the Soul of South Africa." And, within minutes of boarding it, you'll know why.

No. 5: Venice-Simplon Orient Express, Britain, France, Italy--Any train called "Orient Express"-even if it's not the original--has to be included in a Top Ten list. This train has beautifully-restored coaches from the early-20th Century, traveling between London, Paris, Innsbruck, Verona, and Venice, with occasional trips to Rome, Krakow, Budapest and Istanbul. The food and on-board service are truly world class.

The Bernina Express offers one panoramic view after another. (Courtesy Switzerland Tourism)

No. 4: Peru Rail, Peru--Take the train running from Cusco to Machu Picchu, through the towering Andes. You'll pass through green valleys and colorful villages in the foothills. Then you'll climb along the Urubamba River up toward jagged green peaks over 10,000-feet, and then toward 8,000-foot Machu Picchu. With every mile, you'll be getting closer to a true "Bucket List" item and to the mysterious Inca city discovered by explorer Hiram Bingham in 1911.

No. 3: The Rocky Mountaineer, Canada--This train-with huge viewing windows--offers spectacular two-day journeys through the Canadian Rockies, between Vancouver and Banff or Jasper. You'll glide past the plains and mountains of Alberta and the snow-capped peaks and rainforests of British Columbia. And you'll sample the chic, multi-ethnic urban fun of seaside Vancouver as well as the take-your-breath-away mountains and colors of Banff and Jasper.

The Alaska Railroad crosses the Bartlett Glacier at dawn. (Courtesy Roy Neese/Visit Anchorage

No. 2: The Alaska Railroad's "Coastal Classic" Train, USA--There's a good reason the ancient Athabascans called this land "Alyeska"-"The Great Land." And this train ride will show you why, as its winds through the wilderness between Anchorage and Seward. As you climb into the stunning Kenai Mountains, you'll pass numerous glaciers. At Resurrection Bay you can connect to Kenai Fjords National Park, with whale-sighting cruises, sea kayaking, and dog sled rides.

And, now, my personal No. 1 choice...

No. 1: The Royal Scotsman, Scotland (The Highland Journeys)--You'll see ever-changing landscapes of sweeping glens, craggy peaks, ice-blue lochs, and heather-filled coasts as the train rolls on two-to-five-night journeys from Edinburgh through the Scottish highlands. You're one of only 36 guests, with your own cabin and an open-deck observation carriage. This is the Scotland of Rob Roy and Braveheart... of foreboding castles, misty moors, and thatched-roof cottages. And, occasionally, the wail of bagpipes in the distance.

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Are Home Inventory Problems Over in US?

2013-06-13T19:21:32Z

]]> Two major U.S. listing sites are reporting an increase in homes for sales, suggesting the inventory issues restricting the market may be coming to an end.

Realtor.com, the listing site of the National Association of Realtors, reported a 5.82 percent increase from April to May in the number of homes for sale on the site. That's still 10.11 percent below the supply a year ago, but the number of listings is up 25 percent from the beginning of the year.

Several markets, including Sacramento, San Francisco and Washington D.C. saw double-digit increases in the number of homes listed for sale, Realtor.com reports.

Meanwhile listings site Zillow reports that the inventory has "turned a corner," with year-over-year inventories improved in June compared to January in 70 metro markets. Phoenix, San Diego and Minneapolis showed the largest gains.

Dr. Stan Humphries

"It has always been just a matter of time before more supply came on the market to meet this demand, as homebuilders built more new homes and sellers entered the market to capitalize on recent robust appreciation in their own homes," said Zillow chief economist Dr. Stan Humphries.

"Inventory will likely remain below year-ago levels for a while yet, as builders ramp up capacity and sellers wait to squeeze every drop of equity from their home before listing. But a corner has been turned."

The lack of homes for sale has been cited as the biggest issue facing the housing recovery in the U.S. and the biggest reason for the recent jump in prices. Many sellers have been reluctant to put their homes on the market until they were sure the market was improving, many analysts believe. Others are still "underwater"--owing more on their homes than the property is worth.

But evidence is mounting that the situation may be easing. In May 70 percent of the sales handled by Redfin received multiple offers, down from 73.3 percent in April.

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