Quarterly Round Up

BERKELEY INSIGHTS MARKET UPDATES OUR COMPANY EVENTS

ISSUE 6 - Q2 2021

BERKELEY INSIGHTS

Team Developments

We are pleased to have enrolled a number of staff members for their CFA Level I exam through PricewaterhouseCoopers (PwC) Academy in Dubai. This cements our tradition of only the highest standards when investing in our staff, ensuring we stay ahead of our industry peers. We therefore continue to guarantee only the best practices to our clients.

We are grateful for the commitment and hard work of our team members and are delighted to see another Junior Associate promoted within our Dubai office. We also look forward to welcoming two new members to the Junior Associate team and are thrilled with the enthusiasm and knowledge they will bring to the firm.

MARKET UPDATES

Private Equity update

The momentum from the end of last year has carried into 2021 for private equity firms. The first two quarters saw deal volumes increase around 21.9% in comparison to last year and total transactions have hit over $500bn.

Record levels of institutional fundraising, coupled by all-time low interest rates has created a favourable climate for firms. For those focused on real estate, there have been many opportunities presenting themselves.

Warehousing and logistics businesses, something that Berkeley Assets has been involved in for many years, has seen strong growth as the e-commerce industry continues to thrive. Rural single-family homes have risen on average 8%, as people continue to escape the city centre. In addition, affordable and social housing developments are in demand more than ever. This is as a result of the impact that the pandemic has had on low-income households and their requirement for new homes.

At Berkeley Assets, we have been focused on the above real estate sectors for many years. We are now able to further capitalise, as a result of the pandemic accelerating these trends.

Global Markets Update

As the global economy reopens, consumers flock to spend the trillions of stimulus printed from governments and central banks during the pandemic. As a result, the global equity and bond markets posted broad gains in the second quarter.

US equities have rebounded stronger and outperformed other major global markets. The S&P 500 had its seventh-highest close in a row, the longest streak since 1997. The main question on people’s mind is how long can this last?

As we move into Q3, inflation is a new concern. The annual inflation rate in the US accelerated to 5% in May of 2021 from 4.2%. It is the highest reading since August of 2008. It is important that The Federal Reserve does not sit back otherwise we may see it accelerate further.

The biggest vaccination campaign in history is underway. More than 3 billion doses have been administered across the globe. The United Arab Emirates is one of the most vaccinated nations with over 70% of the population having received at least one dose.

OUR COMPANY

FUNDS & DIRECT PROJECTS

After a pre-announcement at the beginning of the year, the Berkeley Assets Development Fund is well underway for its main launch in September.

We are pleased that the initial subscriptions required have already been committed. This puts us ahead of schedule and in a strong position with our institutional network.

The Cayman Islands Monetary Authority will have purview over the Fund, alongside Centaur Fund Services as the Fund Administrators and Grant Thornton as the Fund Auditors.

Propelled by an experienced and dynamic management team, the fund is poised to generate a 12% IRR that is geared around growth. The focus of the fund will be on value creation through asset acquisition, active asset management, planning gain and development profits. As the fund progresses, the initial income focus will be enhanced through capital uplift, appreciation and development revenues.

In addition, we have successfully secured a number of direct projects exclusively for our existing private clients who are looking for increased returns. These provide an alternative to the General Pool, an area once only available to our institutions and UHNW clients.

EVENTS

NOVUS ENHANCEMENTS

Having originally launched Novus in 2019, we are pleased to have used the time during the pandemic to make further enhancements and add fantastic benefits. The Novus application is due to be released in a matter of weeks. Your new Novus credentials will be delivered shortly and we look forward to you utilising the updated application.

Novus by Berkeley Assets is a unique loyalty division that is the entry point to a world of incredible experiences for our clients only. This unique platform allows us to evolve further, ensuring that we can continue providing an elite service to all those who wish to experience the Berkeley Assets brand.

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