Augusta Bulletin Q3

Germany emerged from its deepest post-war recession in the middle of 2009 and the economic outlook still remains optimistic for 2010 and 2011.  Due to record growth in Q2 2010, economists believe that overall GDP growth will be approximately 3% this year. The upturn is largely due to a combination of strong monetary and fiscal policy, low inflation and     general improved sentiment in the business community.  Whilst growth will inevitably slow down towards the end of the year due to weakening global demand, the stimulus package launched by Merkel at the start of 2009 should continue to boost the economy through 2010 and 2011.

The UK recovery is progressing more slowly, but recent gains in the property market and the gradual strengthening of sterling against the euro are very welcome signs for our investments there.

It goes without saying that we have been through tough times and that many European economies are currently still vulnerable.  However, the unfavourable market conditions have in fact benefited the Augusta purchasing team, who have been in a position to acquire properties at keen prices and negotiate more   favourable terms with banks. Augusta has acquired over €10m in assets over the past 14 months and has a further €15m under negotiation. 

In sum, we at Augusta remain quietly confident about our existing investments and will continue to optimise our investors return by our focus on sustainable asset management and value for money.

Many thanks for your continued interest in Augusta.

Philipp Graf von Matuschka

Director