In analyzing the leisure market, information was collected and analyzed from two main sources, firstly the literature review, which included information, gathered from local newspaper articles, property journals and company investment reports, academic papers & seminar presentation.
The second source of information was from personal interviews with industry professional. Ultimately these interviews proved to be the greatest source in revealing relevant information, and provided not only useful information relating to the interviews respective organizations, but also included the personal views of these professionals with regard to the leisure and entertainment market.
If was found that the past performance of the leisure and entertainment market was unrivalled by other property sectors, and arguably one of the fastest growing emerging sectors within the property industry. The underlying reason for this strong performance was seen to be attributable to increase confidence in the emerging property sector; increased investment in the market by various investment funds; and most importantly the quality of management provided by leisure trusts from an operational perspective. These three factors were identified to be the main contributors among others that have seen the leisure and entertainment market prosper over recent years.
It was apparent that the performance of leisure and entertainment listed property trusts was reflective of the performance in both the LPT market, in addition to the performance of the leisure and entertainment property market. This was particularly evident in the major cities (Tehran, Mashhad, Isfahan, Tabriz , Karaj & shiraz) due to the size and population. The performance of these sectors (LPTs and Leisure property) has been considerably strong in recent years, and thus is reflective of the exceptional performance experienced by leisure and entertainment property trusts.
The risks inherent in the leisure and entertainment market were seen to be much greater than traditional property sectors; this was mainly due to the fact that leisure property is heavily reliant on consumers to generate revenue, and this carries with it a higher degree of volatility as consumer spending itself tends to be quite unpredictable. To combat this risk, it was found that limiting one’s portfolio to only high quality investments was an effective approach as these types of investments tended to have a contact appeal to consumers.
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