Assetz® News - Spurring on investment

Spurring on investment

31st October 2008 |

With the credit crunch restricting investment levels across the economy and particularly in property, those seeking new opportunities may look to locations where specific projects are taking place.

Some will see the London Olympics as an opportunity, with all the new homes, economic investment, facilities and transport infrastructure that is being poured into the east of the capital in a bid to ensure a lasting legacy of the games.

However, some may suggest that this particular project is unlikely to bring large benefits for investors now, partly because it has been known about long enough for investors to have had an opportunity to buy up prospects in east London, but also because there is widespread talk of a scaling down of the plans due to financial pressures on the whole project.

At the same time, other sporting developments may play a part in creating new investment opportunities. In the capital itself, new luxury flats were provided by the decision earlier this decade of Arsenal to move from its Highbury home to a new 60,000-seat stadium nearby, with the old ground being converted into upmarket accommodation.

Now Arsenal's north London rivals Tottenham Hotspur have unveiled their own plans, with new homes again forming part of the blueprint. Unlike Arsenal there will not be a move to a new site, but an expansion of the existing White Hart Lane venue, replacing a 36,000 capacity ground with one that holds 60,000.

Announcing the scheme, the club acknowledged that this location is in a part of the borough of Haringey that has been identified as requiring redevelopment. Accordingly, the plan will involve new homes, shops and public space being bought.

As well as the potential for property buyers emanating from those new homes coming on the market, there is also the positive effect the whole project could have on the local area, which could raise prices. The club's announcement described the scheme as a "potential catalyst for wider regeneration and further investment", while Haringey council leader George Meehan said the authority's acquiescence in the whole undertaking will depend on it providing "real benefits" for the community.

Other projects around the country have been announced. Portsmouth said in April that it was looking to move to a state-of-the-art venue on Horsea Island in the north of the city. This will see the new site - on old naval land - being developed not just with a new football venue but also 1,500 apartments, while the current Fratton Park ground will be developed with 750 new homes. Thus investors may find many opportunities.

Of course, even football is not immune to the credit crunch and some plans that could be catalysts for wider regeneration are in question. Earlier this month Liverpool said it was putting a new stadium plan on hold, with chief executive Rick Parry stating that the "turmoil" in the financial markets made any such undertaking "risky". New stadium plans for neighbours Everton are also in doubt after a public enquiry was called.

However, some plans will go ahead and other sports may also be constructing or expanding new grounds (a blueprint is now in place, for example, for Old Trafford cricket ground in Manchester). The economic benefits may have an indirect but positive effect on property values, while new homes built as part of a project could lead to some obvious opportunities. In Portsmouth, Tottenham and elsewhere investors may be watching developments closely.

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/4458.html. Alternatively, please see our full press release archive.