Augusta loves a good news story and there are too few of them around so here's one that is worth a read

Ireland has beaten Singapore to become the world's second most globalised nation, and the most globalised nation in the Western world according to Ernst and Young's Globalisation and the Changing World of Business report today.

It forecasts that Ireland will become the world's most globalised nation by the end of 2011, a position it will retain until at least 2014, replacing Hong Kong.

The report was released to coincide with the World Economic Forum in Davos.

The current top ten most globalised nations now include (1) Hong Kong, (2) Ireland, (3) Singapore, (4) Denmark, (5) Switzerland, (6) Belgium, (7) Sweden, (8) Netherlands, (9) Hungary, (10) Finland. In 60th position, the least globalised nation on the index is Iran, closely followed by Algeria and Venezuela.

The index has five measurements to assess a country's individual global ranking including: its openness to global trade, global capital movements, global exchange of technology and ideas, global labour movements and cultural integration. Each of the criteria's weighting was validated by the 1,000 global business leaders surveyed.

The report finds that the increase in Ireland's score between 2009 and 2010 was mainly the result of greater movement of goods and services as a proportion of GDP. Total trade (exports plus imports) was around 197pc of Ireland's GDP in 2010, compared with 166pc of GDP for trade in 2009. Exports of chemicals have grown particularly strongly.

In addition to improving its overall globalisation ranking, Ireland achieved number one positions in two of the five categories measured; international exchange of technology and ideas - largely attributed to greater numbers of internet subscribers, and international exchange of labour. It was noted however, that Ireland's overall labour result fell in the last 12 months as a result of lower net migration (4.2 per 1,000 people in 2010 compared with 9.1 in 2009).

Ireland's overall globalization is forecast to improve steadily between 2010 and 2014 with the country taking the top position as a result of further increased movement of goods and services, with an estimate of trade rising to the equivalent of over 230pc of GDP in 2014. Cultural integration will also increase, with total tourism steadily rising from 3,400 per 1,000 of its population in 2010 to 3,600 in 2014.

Speaking on the Irish results, Mike McKerr, Managing Partner, Ireland, with Ernst & Young comments, "Although domestic economic conditions remain extremely challenging, we must continue to recognise that Ireland retains core strengths which are key to our recovery. Our nation's globalisation ranking demonstrates how well positioned Ireland is to maximise opportunities within international economies."

He adds, "The enormous opportunities for Ireland in emerging markets, the ever increasing power of the technology sector and a gradual international recovery will ensure that globalisation continues to deepen in Ireland over the coming years. It is also interesting to see the role of tourism, a more traditional business sector, helping to further enhance our position."

25th January 2011

http://www.businessworld.ie/livenews.htm?a=2721460

Augusta has just signed a purchase contract for a new supermarket in Bad Driburg, Germany which was purchased with spare funds in the Cash Faktor Syndicate.  This supermarket, located near Paderborn, is 1015m² and has a lease of 15 years.  It will most certainly add to the asset value of Cash Faktor which was incorporated in 2009 and is already performing very well. 

The IPD German Annual Property Index has just been launched!  German commercial property has posted a strong total return for 2010, at 4.2%, the highest since December 2007, a clear improvement on 2009's 2.4%.

The index results comprised of 57 funds with 4281 assets worth €46 billion.  Dr Daniel Piazolo, Managing Director of IPD Germany explained ' After two years of negative movements, the recovery in the German property market matches the positive returns posted by other IPD indices.  While total return in the UK and the USA has been higher - at 15.2% and 14.2% respectively - the downturn in Germany was much less severe, therefore there was less rebound to follow....'

IPD Germany Annual Property Index 2010

We have just received very positive valuations for our UK syndicates, the First UK Commercial Property Fund and the Second UK Commercial Property fund for the year end of 2010.    Valuers are more optimistic this year in general about UK commercial property which delivered a 14.5% total return last year, the strongest return for four years.

Both of these funds had suffered from big write-downs in 2008 due to the economic crisis.  The last two years have witnessed a slow recovery which, given that sterling has plenty of room to strengthen over the coming months,  is an encouraging sign for both of these syndicates in the years ahead of exit. 

The First fund in particular has received a great boost to share value with the Car Park in Hockley up 24% on last year.   The Valuers were more optimistic this year about this property taking into account the 20 years remaining on the 25 year lease of Signet jewelers a FTSE 250 company. The Retail warehouse in Sudbury is also up by 15.5%

The Second UK Commercial Fund also received a boost to share value, albeit more modest in nature, with the Car showroom in Romford up by 12.2 % and the retail warehouse in Bolton up by 15.8%. 

We would like to invite all our investors to join us on linkedin! We have just created a new group called ‘Augusta Investors’ on linkedin. The purpose of the group is to keep you updated with all syndicate development as well as introducing to new investment opportunities.

In addition to this, LinkedIn will provide an excellent way of keeping in touch with the Directors of Augusta.  Many of you have connected with our Directors in recent months and thus we created a group to enhance this communication process. 

This group is open to all Augusta investors.  Please bear in mind that by joining this group you are identifying yourself as an investor in Augusta.  We welcome your thoughts and discussions on our existing and new investment offerings.  Also please note that this group is not listed in the groups directory.

If you are an investor and would like to join the group please use the link below to join the group.  Or you can an email to rg@augusta.ie and we will send you on the link to join.

Augusta Investors Linkedin Group

We have just received our end of year property valuations for our German portfolio which indicate a 4.5% increase in property value since the date of purchase.   In the context of the overall performance of German property, we are pleased with the increase.   The most recent IPD German annual Property index indicated a 2% overall total return in the office sector of property investments.  Current share valuations for the German portfolio, which are completed monthly are also on a steady and rising trend .

Our policy to purchase assets where there is latent asset management potential, we believe, has contributed largely to this rise in valuation, year on year.  Forecasts are for continued steady economic growth in Germany in 2011 and we look forward to an uplift in the real estate market which will continue to have a positive effect on the valuations of the German portfolio. Our policy to purchase assets where there is latent asset management potential , we believe, has contributed largely to this rise in valuation, year on year.  Forecasts are for continued steady economic growth in Germany in 2011 and we look forward to an uplift in the real estate market which will continue to have a positive effect on the valuations of the German portfolio.

As part of the ongoing lease improvement strategy in Wiesbaden, the Directors are delighted to have signed European clothing retailer Bonprix to the Wiesbaden property. The c. 400 sqm unit is currently being fitted out and retail operations will begin shortly. The new 10-year lease is at very attractive rental levels and matches the directors' expectations for the income-generating potential of this asset.

We are delighted to announce the purchase of a new €6.4 million DIY store located in Salzkotten, a suburb of Paderborn, located between Duesseldorf and Hannover.  This asset, built in 2008 and located in a very busy micro location, boasts a high covenant tenant with a 9% yield and long lease terms.  Purchased for the Cash Faktor syndicate, the Directors are very pleased with the terms and suitability of this investment.

Good news for the 3rd Augusta syndicate - the pharmacy, a principle tenant in Schoenstrasse 5-7 Weissensee, has extended their lease from 2012 to run right through to 2020.  

The Fitness Centre, Pfitzenmeier, in Mannheim has waived a number of break clauses to bring their tenancy forward to 2016 and in addition have consolidated two leases into one, making their tenancy considerably more solid and reliable.