Title

Factors influencing the yields of banking-hall investment: a qualitative study

Document Type

Conference Proceeding

Publication Date

2015

Keywords

British banking-halls, Portfolio building investment, Yields, Influencing factors

Abstract

This research is related to British banking-halls as a class of real estate investment. Sale-and-leaseback has become an increasingly common approach during the last two decades for the holding of British banking-halls. One measure commonly used in making property investment decisions is the all risks yield (ARY). Investors and their advisors have a need for a predictive model which they can use for predicting those retail bank premises likely to achieve the highest ARY when assembling investment portfolios of such properties. A predictive model necessitates the identification of those factors significantly influencing the yields of British banking-halls. This research aims to identify the influencing factors which underpin the development of such predictive model. A literature review generated a hypothesis which was then tested by a qualitative study, based upon semi-structured interviews and a questionnaire, to establish the influencing factors. Expert interviews were held with the heads of those three major auction-houses dominating the market, whilst the questionnaire survey involved investment professionals from within the auction-houses. This triangulated qualitative study confirmed that the four factors influence yields and investors’ decision-making when purchasing retail banking premises were tenant banking company (brand names), regional location (super-regions), lot size (hammer price), and tenure (freehold, leasehold and others).

Source Publication

RICS Construction and Building Research Conference COBRA 2015, Jul, Sydney

This document is currently not available here.

Share

COinS