Introduction to AMC

AMC News

• MWC 2024, Barcelona

  As the dust settles on Europe's largest technology show, 101 000 has been released as the event attendance figure. This respectable number equivalent to the population of a decent sized town or small city, supercedes previous years and the many other events in one of Europe's key event capitals. Aside from the usual names such as Huawei, Amazon and Google, there were a plethora of smaller firms and finance houses at the four day event. AMC Network took part in the investor programme and the 'edgier' 4YFN (Four Years From Now) along with other international financiers. The 4YFN proving ground for technology firms which could grow to become household names in the foreseeable future, has now been incorporated in to the more corporate MWC event proper..

  
  

• Where next?

  In a week where the UK Prime Minister finally announced the cancellation of the additional legs of the UK high speed rail line HS2, a large build to rent scheme was announced in a small town to the west of London. Capital is chasing deals, albeit with sometimes unrealistic desired rates of returns. Similarly vendors are often holding out for 2021 pricing. The two are not aligned, although eventually deals will need to be done. Capital cannot sit there for too much longer looking for a home. It will be an interesting run up to Christmas 2023.

  
  

• A busy weekend, March 2023

  As news broke on Friday last week, regarding the woes at Silicon Valley Bank, it was clear this would be a big story. Over the weekend, the UK and some European media homed in on what may happen if the situation was not quickly resolved. A dynamic event, it seemed by Monday morning the HSBC purchase of the UK entity would make at least the depositors happy. Hopefully the much needed technology eco-system is not pushed too far sideways by these events.

  
  

• Turbulence?

  Lately the media has been a barrage of stories covering rising prices and a predicted upcoming economic crisis. We are asked on a daily basis, what is happening out there in the economy and what our latest take may be. As ever over the last 20 years, it would seem the UK and global economies are running at several speeds. While no doubt things are getting tight for the consumer with rising fuel costs, investment of scale continues to flow, as it does across most of Europe. For now the pain does not seem to be biting, but certainly the era of very cheap debt is in a temporary hiatus. At the large end, this restructure of financial approach may affect major corporate deals, where the acquisition has typically been loaded with this low value debt. But inevitably the higher costs will be passed on in part to the consumer, so the deals will continue.

  
  

• The Perfect Triangle

  Summer 2022 has seen the property, tech and agricultural sectors come together in a threeway deal of nourishment which has witnessed a growth of interest in the Vertical Farming sector. In part, starting originally in the urban environment, the advanced indoor growing sector is rapidly becoming a recognisable investment class. Taking renewable power from a local source, and using less water for irrigation through smart watering and AI tech, there are many reasons for this sector to continue to boom in late 2022 and in to 2023. Food security always on the agenda is now front of mind, planned and plentiful harvests are welcomed by a growing global population, as is the conscious cutting down of food miles. It seems while grey clouds may reign supreme, Vertical Farming has secured it's opportunity in this increasingly adverse world.

  
  

• UKREIIF 2022

  It wasn't Cannes in March, but there was sun, water and boats. Good work by the team at property and finance conference UKREIIF hosted in Leeds, UK, this week. The organisers managed to get the UK and European property sectors together at this inaugural spring event. Well supported by public and private bodies, with a reputed visitor list of 5000 professionals, the 2023 date has already been added in to delegates' diaries.

  
  

• Heading East

  Working with the UK Government trade department, DIT, and the British Embassy, the Company has launched with a local Chinese partner and employed team, the Official UK Pavilion in Chengdu, China. This ten year project will promote British products and interests in a city of 30 million people to the west of the country. The essence of the expo is to encourage greater levels of two way trade and joint financial projects between the two countries. The Official UK Pavilion is fully staffed and open everyday to the public and receives 1000 groups of VIPs per annum, these include Government Officials, business and trade associations.

  
  

• Formula Financial Return

  On the eve of the much awaited 2020 FIA Formula One season, which kicks off this weekend at the Red Bull Ring in Austria, ten teams, some of which have faced increased financial challenges of late, will seek to prove to their investors and sponsors they warrant a good investment. A big ask with even a small team needing an annual budget well in to the £100 million plus mark and multiply this by at least three for an indication of what the front runners are spending. A typical season would at this point in the year be around 1/3 through, with races moving through Europe and then wider afield. The extravaganza over the last few years usually terminating a few weeks before Christmas in the Middle East. To the chagrin of venues, fans and teams, F1 calendars are rarely set in stone.

  In common with many other major events, Covid has put paid to any previous plans. The 2020 F1 season has been paired down from what would usually be just under two dozen global race meets, to what is for now at least a European based series running at six circuits with double headers hosted over consecutive weekends in Austria and the UK, making up a currently light calendar of eight fixtures for 2020.

  Competing on track is costly but so too is staging a race weekend and indeed a full series. Formula One is an expensive business and a solid financial return is to be expected. While many algorithms will be deployed in the coming weeks to analyse the Euros spent by teams and the public alike in Austria over the next three days, the decision to host what is usually the largest show on earth that weekend, can be taken pragmatically and sometimes not purely for financial gain. In pursuit of new moneyed locations, event owners will point to previous successes; people attracted to a given location, ongoing visitors after the event, funds spent during and after, increased TV audiences and awareness. In reality it will still be difficult to attribute every Euro to what will be a colossal overall spend. The stalwart race circuits, which would arguably include as a front runner the winding streets of Monte Carlo will generate media exposure and income, it's a given using a tested formula. For all the parties this arrangement works in the established locations. With the first fully documented Monaco race back in 1929 there has been much time to refine the process. Where the model is predictably less successful is in far flung corners of the globe with little motorsport history or any real following. These locations often have the added burden of a hefty hosting fee in the business plan. So why do organisers take the risk? Global sport is seen as soft power and a way to put a place quickly and positively on the map. Eyeballs will be on the location, even if few have heard of it prior. This pursuit of pay to race and F1 administration's move to increasingly rely on pay per view TV as an additional revenue stream in many territories, has deprived the sport of needed eyeballs and income, it is widely agreed some recent commercial moves have had a detrimental effect. With far fewer resources, two FIA sanctioned series of the last few years, Formula E and Formula W, have had success and helped their host locations by engaging in consistent and sensible PR. All parts of the machine need to work together in tandem. The cycle relies on fans and viewers, this is why the sponsors come, which in turn funds the teams. The algorithm needs to deliver a full package.

  The Summer Olympic Games are another example of a landmark event which comes with a price tag. London 2012 held after a period of economic gloom, cemented the city as a style capital which seamlessly brought together old and new, The backdrops were stunning. No-one would say London was a backwater before the IOC got to town, but the fantastic vibe very much helped project an updated modern image around the globe. Making the city relevant again after several upstarts had stolen a march.

  Going back a further 20 years, the 1992 Summer Olympics are widely presumed to have put the Catalan capital Barcelona on the map. However these assertions are lazy. The city was always an important port, industrial, design and culinary centre. The games had a positive contribution, but using London and Monaco as timely examples, the location already had positive attributes if somewhat not best displayed, these positives were further enhanced by the completion of successful events with global exposure. Large events and good marketing help locations get on the map and massively raise the profile quickly, but on the flip side they are expensive and a precise measure of success will be difficult.

  Investment in getting a location on the map and favourably talked about is usually worth it, but must be part of a larger plan. Like many things, success could depend on how large the chequebook is.

  
  

• Casual Dining No Longer Hungry

  The casual dining boom of the last couple of decades seems to reaching a natural conclusion. Take a concept or an existing brand, inject a lot of money, open lots of outlets fast - grabbing the best sites, market heavily and the punters it is hoped should come. Once these large, venture backed food chains were highly sought after tenants for any high street or retail park.

  Change is now afoot with more negative news for the sector coming this week, Frankie & Benny's the US/Italian style diner has announced staff cutbacks and site closures. This follows a whole raft of national chains recently terminating restaurant leases, Gaucho group's family offering Cau, TV chef Jamie's, burger joint Byron and the more surprising but not unexpected casualty of Italian style family deli, Carluccio's. With the original founder Antonio now gone, the chain has spent much publicised time in and out of the financial danger zone, finally succumbing to the inevitable earlier in 2020. The group like others, has in part been rescued and it seems there is mileage in a timeless brand with a decent core offer, operating from the right sites and being well managed. So what happened to rest of the casual dining sector, much of which was not fortunate to find a white knight moneyed saviour, an investment darling just five years ago, it was riding high, re-financing was relatively easy, global money came in, openings aplenty, and customers did come - one of the key litmus tests for any business. Then the success story experienced what seemed like a sudden death.

  In reality the sector was slowing for sometime, with too many similar offers springing up in too many locations. Points of difference were thin. Branches were no longer special and did not need to be sought out, because they were just there, everywhere. To the detriment of many mom and pop eateries, these commercial machines could outbid on leases and were favoured by landlords for their financial standing over local and less well funded operations. On a spreadsheet it made sense for a property company's accountant, do a deal for say 20 outlets with one enterprise rather than bother with the weaker covenant of a local operator and having to repeat the exercise 20 times over. It now transpires and was clear at the time, despite the extra initial hassle generating more work, the artisan operations have proved they often have a loyal customer base, points of difference and longevity.

  The casual dining demise, is in part due to changing trends, new competition, consumer financial pressure, but in the end the polished brands were just too ubiquitous and not good enough to keep an already cash strapped consumer satisfied.

  
  

• Pounds, dollars and pence

  When an economy falters there is often a trumpet cry of how the resulting weak currency will help move things back to positive territory. In theory foreign funds should flow in and quickly solve the financial issues. Globally there are many states with weak currencies, but general foreign investment funds aimed away from NGOs, never reach any significant volume. So on this alone, the much vaunted theory already looks shaky. Perhaps it is better to invest in fundamentally sound assets where there is real tenant demand, any resulting currency uplift to be seen as an added bonus. In previous downturns the foreign currency play seems loudly over egged. Scanning the business pages it is hard to ascertain whether there is more or less foreign money in the market, especially when so much is re-badged, re-circulated and often placed with a local manager.

  While the strength of CHF has had a big effect in Switzerland, general currency movements in the other established economies are not as pronounced as the chat pertains, having a much more limited outcome on business and trade. While many sectors of Swiss society will revel in an increased spending power abroad, the Swiss Franc being so resilient now for several years has made the country increasingly expensive for tourists and major investors alike, which is not always a good thing.

  Also worth considering and often overlooked in the euphoria when executing a successful asset sale where profits may be significant; there is little thought of the new investor at some stage selling on again, possibly taking away funds to foreign shores in an act of profit repatriation. This too could be driven by a reversal in a currency's fortune, highlighting it cannot always be a continuous upside. When news gets out of the details of the sale, this may have a negative ripple effect on the market and unnerve other owners who subsequently may wish to sell before they had originally planned. A market does not do well if there is a perception of vendors running for the exit. While not looking a gift horse in the mouth, it seems initial hyped reports are not telling the entire story and should only be considered with further investigation.

  
  

• Reports and Surveys

  It seems not a day passes without another report in to the property market. It will rise, fall, stay the same, crash. It is hard to know what to believe. A good start is to look at the sample size, profile type, research parameters deployed and who is paying for said survey. For example were these findings based on random calls to fixed lines and who outside a business would use one of these nowadays? Have you or anyone you know been surveyed in the last five years? Using another measurement, this morning one leading consumer property portal tells us website traffic is up. Unfortunately for agents this does not necessarily equate to sales and hard cash, so while better than no site traffic, it is a metric in isolation which is somewhat meaningless if the aim is to meaningfully value the current property market. For the sector in the UK, it was probably by enlarge slightly overheated, so a likely correction now is taking it back to where it really needed to be and not the doom and gloom some commentators like to revel in. There will always be a demand for good assets at a fair price and those vendors who wish to attain a higher value and can afford it, will wait for the market to catch up. So currently bargains look thin on the ground.

  
  

• Corona's impact on the market

  Despite increased global health worries, the market rumbles on. Some assets are changing hands, partly in deals negotiated before the virus pandemic became so evident. Interest is higher than may be expected reading the general news. Investors still need to place money for a financial return and there is talk of some vulture funds looking to move in; although it is looking likely decent assets will retain conservative values in the medium term regardless of current economic blips. Specifically in the leisure sector some business casualties will leave an open field for new concepts to come to market and some of the defunct dining chains have been subject to buyer interest. One idea is to update these concepts and rationalise sites.

  
  

• Smart City Expo Barcelona 2019

  In its ninth year the show continues to grow, bringing together technology, design, future vision and public bodies. This once offbeat event has now spawned a range of associated events across the globe. Still struggling a little to separate itself from well know property shows such as Mipim, it is hard to say if Smart City Expo is about technology, design or planning and construction. Perhaps it is looking to amalgamate all these areas. Some examples of exhibitors were Moscow city, the Saxony region of Germany, Catalonia and Leeds City Region on the public body side. Technology attendees were the usual players of Microsoft, Cisco and the ilk with some more niche and newer players presenting their wares. To add to the mix Seat showed it’s new electric scooter with a presentation from their top man. Specialist vehicle firms had demos of their driverless autonomous pods, some of which are now live and being used in parts of the world.

  
  

• Thirty years of Mipim, Cannes France

  So another year and another wrap for the yacht parties and fine dining. Mipim, the annual beano for the property sector, held in Cannes France, has become one of the leading conferences for the sector - certainly here in Europe. After some negative and frankly cheap swipes by the less informed media, Mipim has worked hard to push diversity and lose the image of it all being men in suits. The event has become more international and diverse. The first Monday back, across the sector now starts the account reconciliation for business earned v´s expensive meals eaten.

  
  

• Futurebuild 2019, East London

  The three day event once named EcoBuild, closed its 2019 edition last Thursday. The busy exhibition and conference was as ever, held in London Docklands' large purpose built ExCel venue. Although missing the full buzz of previous years, the event was well attended and featured some international exhibitors. Sustainable design and development seem the order of the day. With off grid pods, collaborative living and recyclable design in abundance.

  
  

• Hospitality Gains Pace

  The group looks to further develop its hotel concept as a standalone and in conjuction with an existing UK hotel operator with plans to branch overseas. Business and management strategy to be tweaked dependant on site location, property pitch and scale.

  
  

• Italian Investments

  Cagliari located on the desirable tourist island hotspot of Sardinia was the setting for the latest Italian government backed investment forum. The refurbished old tobacco factory was the venue for innovative Italian firms to meet investors and academics. Drawn from sectors as diverse as biodiversity, eco-technology and alternative forms of construction. Enterprise values of the attendees ranged from sub one million euros to over 100 million euros.

  
  

• November 2018

  The company bids on several UK leisure assets as part of its strategy to develop a wider hospitality offering. For sometime AMC Network has been looking to create and market a hotel and leisure offering in its own name or with a close partner. This comes after several years of acting for the large groups, which has unveiled some overlooked opportunities.

  
  

• Autumn 2018 market update

  The UK real estate market tends to be seeing some early effects of the 2019 scheduled Brexit divorce from the EU. Although some of this can be seen as somewhat of an excuse for struggling corners of the market. For example, the London residential market was already valued very highly for many years, so a softening was to be expected in any financial cycle, add to this equation further outside factors and the demise of Russian and Chinese private buyers. The result is a price drop in certain parts of the London market. More affordable stock continues to sell. Conversely to London prime, desirable commercial stock across the UK seems to still be moving with anything yielding above 4-5% selling rapidly to appropriate buyers. The Eurozone may not be as healthy as is being widely mooted, hence explaining some of the stranger and lacking sound strategy decisions being issued out to member states.

  
  

• MIPIM 2018 in Cannes

  With global markets on somewhat of a yo yo session, think Brexit, Trump, China capital lock down, expectations for Mipim were moderate. The mood was distinctively positive, with the event having a stronger than usual Anglo-French feel. Certain countries were obvious by their absence and there was the usual charm fest taking place, by cities such as Istanbul, Turkey and Stockholm, Sweden.

  
  

• March 2018

  Brexit still appears to dominate European politics and is having some notable economic effect, coupled with this month's Italian election and Spain's lack of sensible resolve in Catalonia; all combined it makes for an interesting and complex European investment environment.

  
  

• September 2017

  A busy summer sees a lift again in student accommodation requirements across Europe. With some Asian money drying up slightly, new investors move in from Latam and the perennial large asset financiers Canada and USA,

  
  

• June 2017

  £60 million investment for mixed use UK development scheme sees much market interest, despite questions over Brexit and the wider economy.

  
  

• Major push

  Following a challenging time for renewables, the company is looking again at major projects. Including wind, solar and tidal in Europe, Latin America and globally.

  
  

• Latest Update

  AMC Network seals two deals in London with a GDV of approximately £35 million.

  
  

• Middle East

  AMC Network finalises partnership agreements in the Middle East, for joint working and acquisition.

  
  

• Transatlantic Fund

  New investment fund signs with AMC Network for European asset acquisition strategy.

  
  

• China Visit

  Chinese guests visit AMC Network to learn about commerce in the UK and Europe.

  
  

• Auto Hackfest

  AMC Network hosts the London edition of Auto Hackfest, aimed at the motoring and transport sectors. Sponsored by General Motors.

  
  

• Barcelona

  AMC Network appointed to assist in the development of a new global investment series with an Anglo-Latin flavour.

  

  
  

• Colliding Worlds

  AMC Network brought together motor industry and finance experts to discuss the future role of personal transport. Well attended with thought provoking discussion of trends in the East and West. Supported by global law firm, Bird and Bird.

  
  

• Catalans visit booming Tech City, London

  

  Finance presentation delivered to visiting group of Catalan entrepreneurs in the Shoreditch area of London. What was once a barren former light industrial area is now a thriving economic hub on the edge of the world famous Square Mile. Investment continues to pour in with significant developments at Devonshire Square and the addition of decent accommodation such as the high tech M by Montcalm spa hotel.

  
  

• New Client

  

  AMC Network takes on a new client, a specialist US bank with a strong balance sheet.

  
  

• West Africa

  AMC Network advises external consultancy team on economic development investment in West Africa. Helping the state become more sustainable and economically viable over the coming decade.

  

  
  

• AMC Accepted

  AMC has been welcomed to the prestigious MIA. The UK industry association for motorsport of all levels and marques; from Formula1 down to semi-professional racing.

  

  
  

• Danish Government Investment Fund

  Denmark is one of the smaller European countries and has limited natural resources. Therefore it is important for the country to push itself strongly in the area of enterprise and innovation. Working with the government's investment fund, AMC Network organised a programme with London's Mandarin Oriental hotel and investors.