Managing Property Business in Real Estate Industry

This document discusses managing property business in the real estate industry. It covers investment in Custodian REIT PLC, current performance of the property market, skills in managing the property business, resolving real estate dispute, negotiation and IT skills, SWOT analysis, and references.

Running head: MANAGING PROPERTY BUSINESS
Real Estate
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Part A...............................................................................................................................................3
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
Quoted Property Company and REIT..........................................................................................4
Investment in Custodian REIT PLC............................................................................................5
Current Performance of Property Market....................................................................................5
Conclusion.......................................................................................................................................6
Part B...............................................................................................................................................7
Skills in Managing the Property Business...................................................................................7
Resolving Real Estate Dispute.....................................................................................................7
Negotiation and IT Skills.............................................................................................................8
SWOT Analysis...........................................................................................................................8
References........................................................................................................................................9

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Part A
Introduction
The property market in the UK and European Property is set to be one of the biggest
sector for the real estate industry. Investment in the property market is considered as an
alternative investment tool where the property investment acts as the best alternative investment-
hedging tool for the company. The investment in the property market would be considered in the
UK Property Market in the Custodian REIT PLC (LON: CREI). The investment of the Custodian
REIT PLC is done widely in the various sector of the UK Property Index including the retail
properties, industrial properties, office and other industrial properties (Wachter 2015). Various
factors were taken into consideration for the evaluation and analysis of the property market index
in the real estate industry. The property market for both the UK and the European Market were
taken into consideration for the purpose of the analysis of the real estate company. The property
market for the REIT investment in the European Region is much bigger than the UK region. The
REIT Market Cap for the European Property market is around US$ 14.2 trillion. The property
market in the UK on the other hand is around US$ 3.4 trillion. In both the case the market for the
property market index is managed internally by some privately and publically held companies
(Hartmann 2015).

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Discussion
Quoted Property Company and REIT
Quoted Property Company is one, which is primarily engaged into core real estate
activities involving building, construction and selling the property to the concerned or interested
buyer. The work of the quoted property company’s start their work from construction of the
property to marketing and selling the various real estate property the company has in its in
portfolio. On the other hand, side the work of the REIT is primarily involved in renting the real
estate properties to the concerned individuals and institutions. The rules and regulations or the
law in specific to the REIT Industry clearly states these companies will be generating there
revenue strictly from there primarily operational work which is renting out properties.
Companies listed as REIT PLC should clearly follow all the norms in respect to the payment of
the profit earned by the company. It is mandatory that the profits earned by the REIT Companies
is distributed fully to the REIT Shareholders and the companies are not entitled to keep the profit
as retained earnings. On the other hand side the quoted property companies are allowed for
buying and selling out properties and earning revenue or income for the company (Wijburg and
Aalbers 2017).
In order to promote the REIT Companies and the interest of the REIT shareholders the
laws, rules and regulations are designed in such a manner, which removes volatility in the
business activity of the REIT Companies.
Investment in Custodian REIT PLC.
The primary investment for a sum of £10,000 will be done in the Custodian REIT PLC.
Company. The investment in the Custodian REIT Plc was done based on the activities and
operations done by the company in the various sections of the property ranging from office, retail

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to industrial properties where the company operates. The Custodian REIT Plc aims at providing
various types of real estate investment for private and institutional investors who are looking for
well established real estate property that is diversified in the commercial, retail and industrial
space. The company is listed in the London Stock Exchange with its ticker symbol as “CREI”.
The earnings per share growth rate for the company has been considerable for the company
whereby the revenue and the net profitability of the company has increased considerably for the
company (Antoniucci and Marella 2016). The financial performance for the company has been
considerably well for the company whereby the company has given better returns in the form of
higher dividends on a per share basis. Subsequent placement of the investment into niche and
well return generated investment has been the key source for higher return on investment done
by the company. The management expertise and the operating activities done by the company
has been considerably well for the company and this has been the key reason that despite of the
volatile property market in UK the company has outperformed well (De Ruggiero et al. 2017).
Current Performance of Property Market
The performance of the property market has been considerably volatile as Europe
watches Brexit, majority of the real estate investor are keeping an eye on the major property
market in the European Cities. Real Estate companies are leaving the United Kingdom property
market and are searching for better opportunities and place for setting up there property in the
leading European Continent. The property market in the UK has been most risky with political
and macro-economic factors affecting the risk and return of the stock. It is essential that the
property market taken for investment consideration in the European region should be such so that
it provides the real estate company get access to various economic, human and financial
resources easily (Panagiotidis and Printzis 2016).

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On the other hand, side, reduced deal-making, dampened sentiments from developers and
the fall in the house prices of the real estate sector has been the ley reason for the volatile real
estate property in the European property market. Economic and Political uncertainty in the
property market has been the key reason for the fall in the value of the property market and the
confidence level in the investor.
Conclusion
The evaluation and the analysis of the financial real estate company was done with the
help of the data collected for the property market condition in the UK and European Property
Market. The company selected for the investment purpose will be Custodian REIT Plc, which
will be considered for the purpose of investment in the real estate.

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Part B
Skills in Managing the Property Business
The skills learned in managing the property business could be well reflected with the help of the
property market factors as follows:
 The skills reflected in the management of the property business could be well reflected in
the course work done where valuation and accounting for the property market was the
key factor we have taken into consideration.
 Accounting for changes in the macro-economic factors affecting the property market has
been the key fact that should be taken into consideration.
 Political Factors affecting the property market and the valuation are the key factors that
helps in determining the property market growth and business viability.
 Accounting for various government policies and monetary policy has been the key factor
that were reflected for the growth of the business.
 External and overhead costs should be well accounted and adjusted in the financial
statement of the company.
Resolving Real Estate Dispute
The various option available for resolving the dispute in the real estate sector can be as follows:
 Injunctions (cease to make additional efforts)
 Arbitration and Mediation (Involving a mediatory part for resolving conflict between the
concerned parties)
 Applying fines and fees (land use violations/common city legal jurisdictions)
 Specific Performance (requiring specific part to agree upon and perform specific contract
duties)

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 Various remedies in the form of remedies such as judicial lien on the property.
Negotiation and IT Skills
It is with the benefit of the technological advancement and various other advancement
that will be helping the real estate sector. The IT Skills and research that will be taken into
consideration for the purpose of the analysis and development in the real estate industry.
SWOT Analysis
It is good to know more about the real estate business with the help of the course
assignment that we took for the purpose of analysing and studying. Various context in regard to
the property market were taken into consideration for the purpose of the analysis and discussion
of the property market and this has been the key strength from our end. Opportunities in the field
of real estate principle application and further research can be considered as the best option in
this regard. Weakness for us can be in the form of changing market conditions and reacting to the
same in a well-defined manner can be still taken as negatively from our side. Threats can be in
the form of unawareness of development and rapid changes in the law, legal and operating
structure of the real estate sector.

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References
Antoniucci, V. and Marella, G., 2016. Small town resilience: Housing market crisis and urban
density in Italy. Land Use Policy, 59, pp.580-588.
De Ruggiero, M., Forestiero, G., Manganelli, B. and Salvo, F., 2017. Buildings energy
performance in a market comparison approach. Buildings, 7(1), p.16.
Hartmann, P., 2015. Real estate markets and macroprudential policy in Europe. Journal of
Money, Credit and Banking, 47(S1), pp.69-80.
Panagiotidis, T. and Printzis, P., 2016. On the macroeconomic determinants of the housing
market in Greece: A VECM approach. International Economics and Economic Policy, 13(3),
pp.387-409.
Wachter, S., 2015. The housing and credit bubbles in the United States and Europe: A
comparison. Journal of Money, Credit and Banking, 47(S1), pp.37-42.
Wijburg, G. and Aalbers, M.B., 2017. The alternative financialization of the German housing
market. Housing Studies, 32(7), pp.968-989.