Abstract
Property business is defined as extraction of value from land and buildings such that the landlord takes a creditor’s view rather than an equity holder’s view of the occupiers. In March 1988 the quoted property company sector (this refers to quoted property companies, i.e. ones that are listed on the Stock Exchange), owned property valued at £17 billion, had a market capitalisation of shares worth £13 billion and net assets of £14 billion. This could have been compared at the time with the market capitalisation of BP (£15 billion) and the commercial banking sector (£16 billion)). Seventy per cent of the shares at that time were owned by institutions (Millman 1988, p. 169). The total book assets of the sector increased up to 1990, when they reached a peak of nearly £30 billion but decreased in 1992 to £25 billion (S G Warburg Securities 1993, p. 17). Debt has continued to rise in the balance sheets of the property sector, although less rapidly to 1992. Table 10.1 sets out a summary of asset values and borrowings in the balance sheets of property companies.
This is a preview of subscription content, log in via an institution to check access.
Preview
Unable to display preview. Download preview PDF.
References
Beveridge, J (1988) ‘The Needs of the Property Company’, in S L Barter (ed.), Real Estate Finance, Butterworths, London.
Brett, M (1990) Property and Money, Estates Gazette, London.
Evans, P H (1993) ‘Statistical Review’, Journal of Property Finance, vol. 4, no. 2, pp. 75–82.
Fraser, W D (1993) Principles of Property Investment and Pricing, Macmillan Press, London.
Isaac, D (1986) ‘Corporate Finance and Property Development Funding: An Analysis of Property Companies’ Capital Structures with Special Reference to the Relationship between Asset Value and Share Price’, Unpublished thesis, Faculty of the Built Environment, South Bank Polytechnic, London.
Isaac, D and Steley, T (1991) Property Valuation Techniques, Macmillan Press, London.
Isaac, D and Woodroffe N (1987) ‘Are Property Company Assets Undervalued?’, Estates Gazette, London, 5 September, pp. 1024–6.
Kynoch, R (1993) ‘Firms Predict £2bn Spending Surge’, Chartered Surveyor Weekly, 26 August, pp. 18–21
Mallinson, M (1988) ‘Equity Finance’, in S L Barter (ed.), Real Estate Finance, Butterworths, London.
Millman, S (1988) ‘Property, Property Companies and Public Securities’, in S L Barter (ed.), Real Estate Finance, Butterworths, London.
Paribas Capital Markets (1993b) Monthly Property Share Statistics, Banque Paribas, November.
Pike, R and Neale, B (1993) Corporate Finance and Investment, Prentice Hall, London.
S G Warburg Research (1993) U.K. Property: Monthly Review, S G Warburg, London, November.
S G Warburg Securities (1993) U.K. Property: Review of 1992 and Prospects for 1993, S G Warburg, London.
Savills (1989) Financing Property 1989, Savills, London.
Savills (1993b) Investment and Economic Outlook, Savills, London, Issue 3, October.
Temple, P (1992) ‘How to Beat a Hostile Takeover’, Journal of Property Finance, vol. 2, no. 4, pp. 476–83.
Woodroffe, N and Isaac, D (1987) ‘Corporate Finance and Property Development Funding’, Working Paper of the School of Applied Economics and Social Studies, Faculty of the Built Environment, South Bank Polytechnic, London.
Author information
Authors and Affiliations
Copyright information
© 1994 D. W. L. Isaac
About this chapter
Cite this chapter
Isaac, D. (1994). Property Companies. In: Property Finance. Macmillan Building and Surveying Series. Palgrave, London. https://doi.org/10.1007/978-1-349-12948-5_10
Download citation
DOI: https://doi.org/10.1007/978-1-349-12948-5_10
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-57681-6
Online ISBN: 978-1-349-12948-5
eBook Packages: EngineeringEngineering (R0)