Politics Archives - Amora Escapes

Province Retracts $580K Property-Tax Levy on Irving Crude-Oil Tank Farm

Garrett Townsend — Thu, 06 Jul 2023 01:39:56 +0000

Provincial property taxes of nearly $600,000, levied on Irving Oil’s deep-water crude-oil tank farm back in March, was an error that did not signal an end to a four-decade-old tax exemption on the site, according to the New Brunswick government.

Instead, the exemption has been reactivated and the tax bill retracted.

In a series of emails explaining why provincial property-tax amounts charged to the tank farm appeared in March, but have since disappeared, the director of communications for Service New Brunswick said the property briefly lost its tax exemption classification in an inadvertent internal computer incident.

“There was an activity to the property account that reset the classification,” wrote Jennifer Vienneau.

“It has been manually reset to the original classification.”

Service New Brunswick operates the province’s property registry and says an error caused Irving Oil’s Canaport oil terminal switch from ‘provincial rate excluded’ to ‘fully taxable’ in its system in March. (Karissa Donkin/CBC)

In March, the province issued property tax bills to all landowners in New Brunswick and for the first time in 42 years, it charged Irving Oil for provincial property taxes on a number of parcels that make up its Canaport crude-oil terminal.

All commercial and industrial properties in New Brunswick, from corner stores to nuclear plants, pay two property taxes, local and provincial, unless specifically exempted by legislation.

The tank farm pays full municipal property taxes to Saint John, but in 1981 it was awarded an exemption from paying provincial property tax by the former government of Richard Hatfield.

The facility sits on Mispec Point, next to Repsol’s LNG terminal at the edge of the Bay of Fundy.

It has a storage capacity of six-million barrels and receives shipments from ocean-going tankers that arrive from around the world multiple times each month. The tank farm feeds the crude to Irving Oil’s Saint John refinery, about eight kilometres away by pipeline.

The property-tax exemption was meant to help Irving Oil weather a significant drop in North American petroleum consumption, caused by the 1979 oil crisis. Those troubles resolved themselves long ago, but the tax exemption has persisted.

In March, Service New Brunswick posted a combined provincial and municipal tax levy of $357,070 on one Irving Oil property containing four crude-oil tanks at its Canaport terminal. Provincial taxes have since been removed, and the tax bill has dropped to $213,915. Other properties at the site have undergone similar reductions. (Service New Brunswick)

In its most recent 2021 accounting of the cost of exempting Irving Oil’s crude-oil tank farm properties from provincial property taxes, the New Brunswick Department of Finance valued it to be worth $674,929 to the company.

However, since 2021, provincial tax rates on business properties in New Brunswick have been reduced, and the value of the exemption in 2023 is closer to $580,000.

According to the finance department, the exemption’s purpose remains to “support the competitiveness of infrastructure that is important for economic development.”

Richard Hatfield was on record opposing special tax treatment for Irving Oil’s Canaport oil terminal, but the former premier’s government granted it a property-tax exemption in 1981, as sluggish petroleum markets in the U.S. caused the company financial trouble. (CBC NEWS)

There have been calls for the exemption on the tank farm to be terminated in the past, but action has yet to be taken.

In 2016, then opposition leader Blaine Higgs said the exemption should be reviewed and potentially cancelled, since the crisis it was created to help Irving Oil survive resolved itself in the 1980s.

“A lot of policies in government start for a good reason, but they never end,” said Higgs.

“There’s no exit clause, so it just doesn’t hit the radar again.”

In 2018, the New Brunswick Green Party put the cancellation of the property-tax exemption on crude-oil storage tanks into its election platform, but has been unable to effect that change in the legislature.

In March, Green Party Leader David Coon applauded what appeared to be the end of the exemption, when Service New Brunswick began showing full taxes being charged at the site. He said he is disappointed to hear that has been undone.

“It’s surprising,” said Coon in an interview this week.

“It seems unlikely they made a mistake, but maybe it was. It’s time for Irving Oil to pay their fair share on all of their properties.”

In this December 2016 interview with the CBC’s Harry Forestell, then opposition leader Blaine Higgs said he would support ending a provincial property-tax exemption on Irving Oil’s Canaport oil terminal, if a review showed it was no longer needed. (CBC)

Irving Oil did not respond to a request for comment about the tax change and whether a property tax exemption at the tank farm is still required by the company.

Irving Oil does not publicly report its financial results, but in 2022 oil companies across North America posted record financial returns.

Refiners like Valero Energy Corporation, which operates refineries in both the U.S. and Canada, and PBF Energy Inc., which refines and sells petroleum into eastern U.S. markets, each reported pre-tax profits in 2022 close to $3,000 US per barrel of their refining capacities.

Results like that, if duplicated by Irving Oil, would have produced more than $1 billion in pre-tax 2022 earnings.

Source: CBC

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Hyatt Announces Plans for First Hyatt Vivid Property to Open 2024 in Cancun, Mexico

Javier Valdez — Wed, 05 Jul 2023 01:48:41 +0000

Hyatt Hotels Corporation (NYSE: H) announced yesterday that a Hyatt affiliate has entered into a management agreement with Grupo Murano for Hyatt Vivid Grand Island, an adults-only resort and Dreams Grand Island, a family-friendly 616-room luxury resort. Both properties are expected to open in Cancun, Mexico in early 2024 within the Inclusive Collection, part of World of Hyatt. Hyatt Vivid Grand Island will mark the first Hyatt Vivid property in the Inclusive Collection portfolio.

“These plans for the first Hyatt Vivid resort reflect the continued evolution of travel and Hyatt’s unwavering dedication to the all-inclusive concept. Introducing a resort experience that blends culture and a free-spirted atmosphere with the conveniences of an all-inclusive is an ideal value proposition for owners who are eager to capitalize on this exciting opportunity to introduce the all-inclusive experience to the next generation of travelers,” said Javier Coll, group president, global business development & innovation, Inclusive Collection, Hyatt. “We are confident the winning combination of Hyatt Vivid Grand Island and Dreams Grand Island will create a must-visit destination that will appeal to a variety of travel occasions and guests.”

“Working with one of the most prominent brands in hospitality aligns with Grupo Murano’s strategic vision,” said Marcos Sacal, CEO, Grupo Murano. “We are thrilled to continue collaborating with Hyatt, now in Cancun, to launch the new Hyatt Vivid brand. As we expand our services, offerings, and developments, we are eager to work with like-minded companies and brands, such as Hyatt and the Inclusive Collection, that are evolving the travel and hospitality space.”

Hyatt Vivid hotels and resorts will offer couples, friends and solo travelers locally inspired itineraries and encourage social interaction at every turn through experiential-driven programming, dining, and entertainment. Created to appeal to the next generation of forward-thinking travelers, the new brand is designed for adults seeking casual comforts filled with simple pleasures. Signature dining experiences will offer a casual and inviting approach focused on flexibility over formality, including a culinary collective comprised of taco trucks, ceviche carts, a food hall, and more. For active travelers looking to maintain healthy routines and fitness goals, resorts will offer specialty classes to complement state-of-the-art fitness centers.

Hyatt Vivid Grand Island will feature 400 guest rooms designed for comfort and featuring expansive views. Reminiscent of the Mayan deity Kukulcan, the resort is being designed by world renowned and award-winning architects, HOK.

Guests can expect to have seamless access to the adjacent Dreams Grand Island, a family-friendly 616-room resort expected to open in early 2024, providing additional options and amenities for a truly immersive experience. Guests will enjoy the brand’s signatured inclusions, such as pool and beach service, unlimited international and domestic top-shelf spirits, 24-hour room and concierge services, daily activities and entertainment, nightly events and more.

Together, the resorts will offer 19 unique culinary concepts comprised of Japanese, Mexican, French, Mediterranean, and more. Guests will have access to a 26,000-square-foot spa, complete with 25 treatment rooms, a state-of-the-art fitness center, multiple pools, a beach club and more.

Source: Hotel News Resources

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Hong Kong’s $900,000 a Month Retail Lease Is Biggest Since Covid Ended

Jonathan Barton — Tue, 04 Jul 2023 04:25:47 +0000

A mall in Hong Kong’s premier shopping district of Tsim Sha Tsui rented three floors to a dining and entertainment group for almost $900,000 a month, the biggest lease by size and value since the pandemic ended, according to a report.

The 80,000 square-foot space at Silvercord mall will be transformed into an anime-themed store featuring dining, retail and a play area, Hong Kong Economic Times reported, citing unidentified people. The site will be leased for HK$7 million per month and may include Japan’s Demon Slayer and One Piece, it said, without naming the lessee. The site was previously occupied by Hennes & Mauritz AB.

Mainland Chinese tourists are returning to the city after travel restrictions were lifted earlier this year. Visitor numbers increased from fewer than a million in January to almost 3 million in April, according to the Hong Kong Tourism Board. Retail sales in April reached 92% of 2019’s level in the same period.

Commercial rents plummeted during the pandemic due to Covid curbs and restrictions on visitors. Leases in Tsim Sha Tsui in Kowloon fell 41% between 2019 and 2022, according to a survey by commercial property firm Cushman & Wakefield Plc. Tsim Sha Tsui overtook Hong Kong’s Causeway Bay as the city’s most-expensive retail district, the survey showed.

Read More: Chanel Adds New Hong Kong Retail Space as Tourists Return

Luxury brand Chanel leased a two-floor shop in a prime location in Causeway Bay in May.

Source: BNN Bloomberg

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Redevelopment of Hong Kong’s Only Private Low-Rental Housing Estate Pushed Back Further 2 Years, with 2,000 Flats to be Available by 2029

Aaron Maxwell — Mon, 03 Jul 2023 04:21:23 +0000

The redevelopment of Hong Kong’s sole privately owned low-rental housing estate will be pushed back by a further two years, the firm behind it has said, meaning its 2,000 flats will only come on the market in 2029.

The Hong Kong Settlers Housing Corporation on Friday said current residents of Tai Hang Sai Estate in Shek Kip Mei would be given until March 2024 to move out and surrender their units before redevelopment work began.

“We had to postpone the schedule to give the residents more time to decide their rehousing arrangements,” said a spokesman from the firm, which is associated with property giant Henderson Land Development.

The project is now set to be completed in 2029, instead of the previously estimated 2027. It aims to provide 3,300 flats – more than double the current 1,600 units.

About 1,300 of the new homes will be used for rehousing existing tenants, while the remaining 2,000 will be allocated to the Urban Renewal Authority to be sold as so-called starter homes. The initiative offers flats at below-market prices for first-time buyers who cannot afford to buy on the private market, but also do not qualify for public housing under the government’s Home Ownership Scheme.

According to the corporation’s spokesman on Friday, 82 per cent of current tenants, or 1,012 households, had submitted their eligibility assessment forms, which determine the number of people in a family and their assets.

Of them, 676 households were deemed eligible for rehousing and given two options: move back in upon redevelopment completion or leave permanently.

Both options would include allowances of varying degrees, depending on the number of people in the household.

Some tenants have cried foul and accused the developer of moving ahead without their agreement. Photo: Dickson Lee

A family of four, for example, would receive a rental allowance of HK$810,000 (US$103,000) and a payment of HK$54,000 to settle in interim housing on their own or apply for transitional housing through social workers.

Families would be given a one-off allowance of about HK$1 million, on top of a HK$27,000 removal payment, if they decided to depart for good.

Meanwhile, another 324 households were considered ineligible for rehousing for various reasons, including owning other properties, enjoying public housing benefits or no longer living in their flats.

These families would still be given a special removal allowance of up to HK$700,000, the firm said.

The remaining 12 per cent of residents, or 224 households, had not handed in their forms, with the organisation adding that it was “unclear” why they were being unresponsive since they were not in need of help from social workers.

He warned these residents may face repossession without compensation if they continued to refuse to hand in their forms.

“If we were forced to come to this final step but still offered them the same compensation, I think it would be unfair to the other residents who responded in a timely manner,” the spokesman said. “It poses a moral hazard.”

But some tenants have cried foul and accused the developer of moving ahead without their agreement.

Kate Au Yeung Kit-chun, who leads a group of residents from the estate refusing to accept the latest arrangements, called the corporation’s statements “outrageous” and accused them of running a “black box operation”.

She said many of the so-called unresponsive tenants had indeed replied by handing over an alternative form explaining why they rejected the arrangements, with reasons including that they wanted a “flat for a flat”, or that the firm had failed to respond to queries or clarify terms.

The corporation emphasised on Friday that residents of Tai Hang Sai Estate were renters, not homeowners.

The government has launched initiatives to ease the city’s housing crunch, including providing affordable flats for first-time homebuyers in 2019.

The Urban Renewal Authority offered about 500 flats in Ma Tau Wai as starter homes in 2019, which were sold at discounts of up to 38 per cent.

Authorities also plan to sell another site in Tsuen Wan for such projects in this financial year, with a target of providing about 1,000 affordable homes.

Source: SCMP

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Fieldfisher Opens in Vienna as Part of Latest European Growth Push

Leon Clarke — Sat, 01 Jul 2023 04:14:49 +0000

UK firm Fieldfisher is opening in Vienna as it seeks to expand its European footprint as part of its broader growth strategy on the continent.

The Vienna launch is being led by the firm’s new Austria managing partner, Thomas Ruhm, who arrives from regional firm SCWP Schindhelm along with fellow partner Philipp Reinisch. They are joined by Alice Meissner, who is integrating her boutique firm Meissner & Passin into Fieldfisher’s Austrian business, and Leonhard Reis, who also ran his own practice.

They quartet of partners will be supported by a director and four lawyers, with a total office headcount of 17.

The Vienna office will cover practice areas including corporate law, dispute resolution, data protection, employment, real estate, intellectual property and regulation, with a particular focus on financial services, life sciences, energy and technology.

Robert Shooter, Fieldfisher’s managing partner, said: “We see Vienna as a strong commercial centre in Europe and a gateway to Central and Eastern Europe and the Commonwealth of Independent States (CIS) regions. Vienna is also an important international arbitration hub.”

Ruhm joins after nine years at SCWP. Meissner also previously worked at SCWP before launching her boutique firm in 2021. She was also previously at Wolf Theiss, having trained at Freshfields Bruckhaus Deringer.

Ruhm said: “I am proud to be launching Fieldfisher Austria with such a strong team, drawn from some of Austria’s most respected law firms and wider legal and business backgrounds.”

The Austria opening is the firm’s 26th office globally, now operating across 12 countries. It follows the launch of its Berlin-based mass litigation business unit Fieldfisher X last year, and the opening of its Dublin office through a merger with local firm McDowell Purcell in 2019.

“One of the central planks of our 2022-2025 strategy is to become Europe’s leading law firm by opening new offices in key European markets,” Shooter added.

Fieldfisher’s latest European expansion follows a number of other firms who are seeking to build out their offering in the EU. In March, Gowling WLG hired a quartet of partners from Taylor Wessing to open in Frankfurt just days after Morgan Lewis & Bockius hired a 20-strong team from Shearman & Sterling to open in Munich. In February, DAC Beachcroft opened in Italy with the arrival of an eight-strong insurance team from ADVANT Nctm in Rome and Milan. And in January, Davis Polk & Wardwell hired a partner duo from Allen & Overy to launch in Brussels.

Source: The Global Legal Post

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Tivoli Hotels Opens its First All-Inclusive Property

Rick Casey — Thu, 29 Jun 2023 04:08:40 +0000

Tivoli Hotels & Resorts opened its first all-inclusive property, Tivoli Alvor Algarve Resort in Portugal, its fifth resort in the Algarve region.

Situated next to the village of Alvor and close to the city of Portimao, the resort features 491 guestrooms spread over 27.5 acres, including 56 two-bedroom Premium Family Rooms and four Premium Suites.

Amenities include five outdoor pools — one adults-only, three for families and one for children — four restaurants and two bars. It also has a gym and a Wellness Center with an indoor lap pool, hammam, saunas and spa treatment facilities.

The Pluma Junior Club, designed for kids ages 4 to 12, features a swimming pool with slides, a game room, playground, miniature golf and supervised entertainment.

The Essenze restaurant serves breakfast, lunch and dinner daily. Photo Credit: Tivoli Hotels & Resorts

Tivoli all-inclusive options

There are two all-inclusive options, both of which include access to a choice of theme parks and dinner at a selection of restaurants.

The premium all-inclusive rates also include VIP check-in and checkout, minibar upgrade, breakfast in a dedicated area and a free 30-minute massage per adult.

On-property dining includes Essenze restaurant for breakfast, lunch and dinner; and, for dinner, Carosello with Italian-inspired fare; Roastic steakhouse; and Mad Med, for Mediterranean cuisine. The Salty Bar serves poolside snacks and drinks and the Shore! Bar offers evening entertainment and cocktails.

The resort also offers regular complimentary miniature train transfers to local beaches and to Alvor village.

Source: Travel Weekly

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Catella to Target New Ventures and Markets with Aquila Group Purchase

Salvador Cruz — Tue, 27 Jun 2023 04:01:17 +0000

European property fund manager Catella is buying a 60% stake in Aquila Group as part of a plan to expand into new businesses and markets.

Nasdaq Stockholm-listed Catella said it has agreed to buy the shares for €9.6m from Aquila Group’s management who will remain minority shareholders.

Aquila Group, which holds €1.4bn in assets under management, consists of Aquila Asset Management and the real estate investment fund management company Axipit Real Estate Partners.

Catella operates in 12 countries and has over €13bn in assets under management.

The acquisition of Aquila Group will complement its existing corporate finance operations in France as well as the continued growth of its pan-European platform, Catella said.

Christoffer Abramson, CEO of Catella, said: “The acquisition of the majority of Aquila means that we add another piece of the puzzle in place on our growth journey.”

The acquisition will provide “strong synergies with our existing operations in France and Europe, while the entry into the French fund business for private investors is of great strategic importance”, Abramson added.

Jean-Marc Sabiani and Gilles Barbieri, founders and managing partners at Aquila, said: “The partnership with Catella will give us extra power in our strategic journey of transforming into a global player in real estate savings.

“Aquila has a successful history built on local expertise, and as we now join Catella’s European network, we form a very strong team, internally in Europe as well as on the French market.”

“This partnership is a very important component in our endeavor to take the next step on the group’s profitable growth journey and to be an attractive partner for investors globally. We are now significantly strengthening our position,” said Abramson.

Source: IPE Real Assets

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Lincoln Property Company Names Maria Stamolis Chief Investment Officer

Sean Potter — Sun, 25 Jun 2023 03:50:29 +0000

Lincoln Property Company (“Lincoln”), a global, full-service real estate firm, today announced that Maria Stamolis has been appointed as Chief Investment Officer and Head of Investment Management. In this role, Ms. Stamolis oversees the company’s investment activity across its global portfolio, which currently comprises approximately $3 billion in assets under management invested in over $6 billion in assets for separately managed pension fund portfolios. She is also responsible for broadening Lincoln’s relationships and offerings with institutional investors.

Lincoln’s Co-Chief Executive Officers David Binswanger and Clay Duvall shared in a joint statement: “With institutional investor demand for real estate increasing significantly in recent years, there is substantial focus on the growth of our investment management business. Maria has a long track record of success in launching and managing both debt and equity platforms and portfolios across a broad spectrum of real estate property types, and we are thrilled to add such a high-caliber leader to our team to drive the growth of a critical part of our business.”

Ms. Stamolis brings over 30 years of experience in commercial real estate to her role at Lincoln. She joins the company after 16 years at Canyon Partners, where she most recently served as Partner and Co-Head of Real Estate. At Canyon, Ms. Stamolis contributed significantly to the growth of the company’s real estate investment platform, helping to oversee approximately $5.5 billion of debt and equity capital across two hundred transactions over the last 10 years.

Additionally, Ms. Stamolis was integral to establishing the real estate emerging manager platform, the Canyon Catalyst Fund, in partnership with the California Public Employees’ Retirement System (“CalPERS”). The fund invested across commercial real estate product types in the Western U.S. alongside early-stage, high-performing emerging managers within a framework of mentorship.

Prior to Canyon Partners, Ms. Stamolis held senior roles at real estate firms Karney Management Company and R+B Realty Group/Oakwood Worldwide. She began her career as a project manager for the developer center for Housing Partnerships in New York City, going on to serve as a portfolio manager at both GE Capital and MBL Life Assurance Corporation.

“I am honored to join the Lincoln team as the company embarks on its next-generation growth plan while building on its long-standing history of success,” said Ms. Stamolis. “Lincoln has deep roots and significant relationships across the real estate landscape, and I am thrilled about the opportunity to lead the growth of its investment management platform.”

In addition to Ms. Stamolis’ appointment as CIO, three additional senior executives will join Lincoln’s investment management team. Vernon Chin, Senior Managing Director; Rob Bilse, Managing Director; and Carly Marano, Director, collectively have more than 50 years of experience in capital markets and investment management, and they will contribute to fundraising and the development of asset management strategies, as well as transaction activity. Mr. Chin and Ms. Marano worked extensively with Ms. Stamolis at Canyon Partners and were key members overseeing the CalPERS emerging manager program, as well as investment management more broadly. Mr. Bilse previously served as Director and Head of Capital Markets at PATRIZIA Property, where he led the North American business and brand strategy.

The growth of Lincoln’s investment team follows the appointment of David Binswanger and Clay Duvall as co-CEOs. Both Mr. Binswanger and Mr. Duvall, each of whom have spent their careers at Lincoln, were elevated from their previous roles as Senior Executive Vice President of Lincoln West and Executive Vice President of Finance, respectively.

Source: Yahoo! Finance

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Real Estate Industry Proposes Solutions for Problematic SFDR Regulations

Sherman Henry Reeves — Sat, 24 Jun 2023 03:46:37 +0000

Three real estate industry bodies have produced a set of proposals aimed at EU regulators to solve problems arising from the Sustainable Financial Disclosure Regulation (SFDR).

A working group comprised of Association of Real Estate Funds (AREF), European Association for Investors in Non-Listed Real Estate (INREV) and the Investment Property Forum (IPF) have published the SFDR Real Estate Solutions Paper, which aims to support SFDR’s goal of preventing ‘greenwashing’ while also avoiding some of its counter-productive effects.

Earlier this year, a report by INREV argued that SFDR, in its current guise, could have the unintended consequence of diverting capital away from real estate investments that make the most positive environmental impact and even encourage greenwashing.

The newly announced proposals come ahead of an anticipated review and industry consultation on current SFDR rules.

In a statement today, INREV, AREF and IPF said SFDR “should be supported in its ambition to accelerate decarbonisation of financial market activities, including the built environment, and to inhibit greenwashing”, but they also said a number of solutions were needed to solve “challenges” surrounding its application to real estate.

The paper proposes remedies for several challenges that involve:

Differences in the calculation methodologies between SFDR and recommendations of the Task Force on Climate Related Financial Disclosures (TCFD);
Inconsistencies with energy performance certificate (EPC) ratings among EEA member states;
Confusion surrounding what should be included under the mandatory principal adverse impact (PAI) “exposure to fossil fuels”;
Treatment of energy-inefficient assets under the PAI.

“The working group has provided a valuable service to the real estate industry in identifying potential solutions to the challenges presented by the SFDR and I have been pleased to be able to contribute,” said Abigail Dean, head of strategic insights at Nuveen, chair of the INREV ESG committee and Better Buildings Partnership (BBP) board member.

“I appreciate the leadership shown by AREF, INREV and IPF and the thoughtful approach that they have taken in exploring the issues and bringing in views from across the real estate investment sector. The EU Action Plan on Sustainable Finance and the SFDR are critical to encouraging the flow of capital into sustainable solutions and I hope that this consultation response and the recommendations within will help the regulation to better achieve that goal.”

Aleksandra Njagulj, managing director, global head of ESG real estate at DWS, vice-chair of the INREV ESG Committee and ULI Sustainability Product Council member, said the working group of “industry ESG specialists approached the task diligently and proactively, looking to illustrate the specificities of real estate investment management and the nexus with SFDR”.

She added: “The result is an extensive analysis of the questions posed alongside with potential solutions. We trust the feedback and suggestions will be well received and serve to improve the next iteration of regulation.”

Julie Townsend, vice-president and ESG lead for Europe and Asia-Pacific at PGIM Real Estate, ULI UK Sustainability Product Council member and co-chair of the BBP investor working group, said: “SFDR has had a huge impact on the commercial real estate sector. If we can get the instruments the regulation lends on correct, we can make the impact entirely positive.

“Additionally, if we can make the instruments it leans on translatable across the Americas and APAC, a business like PGIM Real Estate takes this positive impact beyond the EU and right across the globe.”

Melville Rodrigues, head of real estate advisory at Apex Group, AREF Public Policy Committee member and IPF member, said: “SFDR has laudable aims in laying down harmonised transparency rules and integrating ESG factors into investment decisions and financial advice. Constructive engagement between regulators and market stakeholders are key to achieving SFDR real estate regulation.

“Regulators and stakeholders have shared goals, like accelerating net-zero pathways and attracting capital for transition strategies. We hope our paper facilitates industry debate and regulator engagement, so SFDR works appropriately and efficiently for our real estate sector.”

Lonneke Löwik, CEO of INREV, said: ”INREV has worked hard to help regulators to understand the importance of disclosure requirements that supports allocation of capital to vitally needed real estate transition. The paper supports this important effort.”

Source: IPE Real Assets

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Luxembourg’s Property Prices are Finally Going Down

Tyrone Santiago — Thu, 22 Jun 2023 03:39:55 +0000

Housing prices in Luxembourg have made a sharp downturn in the second quarter of 2023 after the Central Bank of Luxembourg announced an increase in interest rates for mortgage and consumer loans to 3.9%.

The data came in a report by atHome.lu, one of the largest real estate websites in the country, and shows a serious trend reversal in one of Europe’s most unaffordable housing markets.

As the growth rate of the price of property started slowing at the end of 2022 and turned into negative digits this year, the local housing market started experiencing a boom in prices for rental.

Although this trend may be related to the Grand Duchy’s reforms from October, most analysts point to interest rates as the driver of the shift.

Luxembourg has one of the highest housing prices in the European Union – a condition that has created a lot of problems for the small landlocked country. One of the issues is that almost half of Luxembourgish workers actually commute from France, Belgium and Germany every day.

This situation has created so-called housing refugees, as a lot of these workers are Luxembourgish nationals, who have been priced out of their home country. In turn, however, this movement of people looking for housing has caused a spillover effect in border regions of neighbouring countries.

Purchasing prices

The report shows that, in the second quarter of 2023, average apartment prices have gone down by 7.3% while with houses that number is 5.5%. This followed a growth slowdown that started in the middle of 2022, as the war in Ukraine intensified and the EU started spiralling into a cost of living and energy crisis.

However, the Luxembourgish housing market came down from a record high, as property prices frequently grew in double-digit numbers over the pandemic years. In the first quarter of 2022, apartments and houses saw more than a 10% rise in value. The trend only turned at the start of 2023.

In the West region, the drop was the most dramatic, as apartments devalued by 14.1%, while houses dropped by 5.6%. In the central region, holding the city of Luxembourg, apartment prices fell by 4.2%, while the price of houses dropped by 13.9% and the average price came to around 1,041 million.

Rental prices

In contrast, average rent prices have continued to rise steadily through the last two years, starting off at a modest 2.7% for apartments and 2.4% for houses at the beginning of 2022. That number changed dramatically in the latter half of last year, which saw a 14.2% and 12.8% increase in the third and fourth quarters.

2023 has not managed to bring much relief for renters as the first trimester with atHome.lu registering an 8.3% increase for apartments and 11.8% for houses. The average rent in central Luxembourg is now a staggering 2,118 euros, closely matched by the rents in the Western region sitting at 2,005.

Source: The Mayor

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