We are now firmly into Q2 of 2019 and Brexit continues to steal the headlines. Labour's governing body will meet this week to discuss whether to call for a second public vote on Brexit as part of its European election manifesto. The National Executive Committee is split between holding a referendum on any deal, holding one with caveats, or rejecting the idea altogether. Never have I seen such misperception of what is really needed. The party continues to explore options publicly and is also holding further talks with ministers to try to break Parliament's Brexit deadlock. The EU has set a new deadline of 31 October for the UK's departure; however, Theresa May has said the UK could leave earlier - and avoid European elections - if MPs can agree on a deal before 23 May. We shall see what happens later in May.
The service apartment and aparthotel sector continue to have new supply come to market regardless of Brexit. The MRP Group has undoubtedly had a hectic month. Four individual buildings signed of Heads of Terms into exclusivities and the lawyers agreed on contracts. That’s a total of over 589 apartments that have been agreed! Two of those are Master leases of 25 years on an FRI (Fully Repairing & Insuring) basis, and two are on management agreements, one with a leading global brand. With these four separate opportunities, the MRP Group has now delivered over 50 offers to lease and/or manage buildings to the sector (over 20 of these were leases). This is a significant achievement that clearly demonstrates the strength and continued growth within the industry, despite the uncertainty we face.
We have many more opportunities coming live to the market this quarter and expect to announce some of the above transactions shortly. In the meantime should there be any questions that you have surrounding the sector, then please feel free to contact me.