AGM Statement and Interim Management Statement

RNS Number : 8938F

Savills PLC

04 May 2011

 



4 May 2011

SAVILLS PLC

("Savills" or "the Company")

AGM Statement and Interim Management Statement

Savills plc, the international real estate advisor, is today holding its Annual General Meeting (AGM) at 12 noon, 20 Grosvenor Hill, Berkeley Square, London W1K 3HQ and provides the following Interim Management Statement (IMS) for the period to 4 May 2011.

During the first four months of the year Savills has traded in line with the expectations that we highlighted at our full year results in March. The first quarter saw the anticipated continuation of strong markets in Asia, improved trading in the US and, by quarter end, a strong performance from the UK Residential business, principally in central London. The UK Commercial and Cordea Savills' fund management businesses, are also performing as anticipated. In Continental Europe, the core markets of France, Germany and Sweden have shown aggregate revenue growth over the comparative period last year, although trading in other markets continues to be affected by weak economic conditions.

As announced yesterday, Savills has sold a majority stake (80.01%) in Savills Private Finance Limited to the management team.

London's attractions as an investment location are well known. However, the current political and economic turbulence in many parts of the world has undoubtedly resulted in further significant interest in the capital's prime residential property during this period. Savills has enjoyed the leading market share in London properties valued at more than £5 million. In addition, the increase in UK Stamp Duty created a short term surge in completions in March, although we anticipate from previous experience, that the impact of such changes is generally short term in nature. In Hong Kong and Singapore we have experienced a strong first quarter and, as anticipated, we are seeing signs of potential slowing in market activity which could affect the second half of the year.

Our US business continues to build momentum and we have hired a team of investment professionals focused on cross border business. Supporting this activity, in April we formed Savills Liberty Street Asset Management LLC, a joint venture with Silverpeak Real Estate Partners to provide a strategic asset management service to clients with portfolios and individual property holdings in the US. Furthermore we have announced today that we have entered into a strategic alliance with CresaPartners LLC, a 55 office firm in North America focused on tenant representation. This will enable both firms to offer tenant representation services through a combined global network of over 250 offices.

Overall, we are pleased with the performance of the Group with an improved outlook for London residential compensating for a potential shortfall in some Continental European markets and with the rest of the Group performing as expected at this stage in the year.

For further information, contact:

Savills    020 7409 8844

Jeremy Helsby, Group Chief Executive

Simon Shaw, Group Chief Financial Officer

Tulchan Communications    020 7353 4200

John Sunnucks

Peter Hewer

 

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