Either Bear Was Absurdly Cheap Or Property In London Is Absurdly High

[Bardon]

Morgan paid US$236 million or about US$2 per share-one tenth of Bear's market value at the close of trading on Friday. Bear's selling price is actually less than an apartment which sold in London this week. Either Bear was absurdly cheap or property in London is absurdly high.

--According to the Times of London, "The flat in St James's Square, equidistant from 10 Downing Street and Buckingham Palace, was granted planning permission last week…It is to be carved out of a seven-storey 1930s office block, which will be used to create a total of six extravagant apartments."

Edited March 18, 2008 by Bardon

[Venger]

Dan Denning of the Daily Reckoning surely is teasing.

Lots of big companies with tasty assets have sold for just £1.

JP Morgan might be taking a lot on - but it does seem they may have got value.

[smash]

Morgan paid US$236 million or about US$2 per share-one tenth of Bear's market value at the close of trading on Friday. Bear's selling price is actually less than an apartment which sold in London this week. Either Bear was absurdly cheap or property in London is absurdly high.

--According to the Times of London, "The flat in St James's Square, equidistant from 10 Downing Street and Buckingham Palace, was granted planning permission last week…It is to be carved out of a seven-storey 1930s office block, which will be used to create a total of six extravagant apartments."

Has anyone got any thoghts on what may happen to all these major, very prostigious, developments that are under way in London at the moment? Theres the massive lancasters, bayswater and of course the candy & candy developments. C & C are known for the knighsbridge project and also recently aquired Chelsea Barracks but thats not all. I was in town today and they have brought an old hospital on Mortimer street, its another massive development promising luxury lifestyle living etc. I wonder if some of these projects might get ito a bit of bother by the time they're completd and for sale?

[Bardon]

Has anyone got any thoghts on what may happen to all these major, very prostigious, developments that are under way in London at the moment? Theres the massive lancasters, bayswater and of course the candy & candy developments. C & C are known for the knighsbridge project and also recently aquired Chelsea Barracks but thats not all. I was in town today and they have brought an old hospital on Mortimer street, its another massive development promising luxury lifestyle living etc. I wonder if some of these projects might get ito a bit of bother by the time they're completd and for sale?

They will be going down in price between completion and 2014.

[Gremlin]

They will be going down in price between completion and 2014.

I tend to think that some of these projects (knightsbridge, chelsea )will be ok. They may lose some value but many are funded by middle eastern petrodollars. They are VERY high end and are being marketed to multi-billionaires ( russian criminals )who don't mind paying top rate as it is a useful money laundering vehicle. Plus if they don't buy property then the dollars they hold are just being eaten away or taxed. It is the same situation as US companies where foreigners are in the position to buy your country out from beneath you because you spent all your cash on plasma tv's and holidays. There are enough ultra-rich in the world now to keep these properties ( 50m+ ) in demand. Any of the wannabe luxury executive tat being hawked for millions will go the same way as everything else.

Edited March 18, 2008 by Gremlin

[Nicholas Cage]

I was reading some non-fiction books written during the last crash which had parts about central London. Basically they never let the facade down, and even completely empty office blocks had regular window cleaners and bogus waiting lists for occupancy. So any development would employ the same tactics to keep demand up this time around.

Edited March 18, 2008 by maxwell

[Bearfacts]

London flat sells for more than worlds fifth biggest investment bank - says it all really.

.

London is going to be the epicentre of an financial earth quake that will destroy this country's economy for generations to come. Thank you very much Gordon Brown .. thank you very much City Whizz Kids - may you rot in hell where you deserve to be.

[Guest DissipatedYouthIsValuable]

I was reading some non-fiction books written during the last crash which had parts about central London. Basically they never let the facade down, and even completely empty office blocks had regular window cleaners and bogus waiting lists for occupancy. So any development would employ the same tactics to keep demand up this time around.

Haha, this I can believe.

[Austin Allegro]

the 'shard of glass', hideous speculative office building which will dominate the London skyline, had lost financial backing but then some Qatiris stumped up the cash, looks like it's going ahead now. I do sometimes wonder if London really IS immune to a crash, because if liquidity gets withdrawn from one direction, it seems to flood in from another, like some giant sponge.