Fund managers to sink cash in to commercial property. Two out of three investment fund managers intend to put cash in to commercial property in the coming months

by Mark Alexander

11:06 AM, 28th October 2010
About 11 years ago

Fund managers to sink cash in to commercial property. Two out of three investment fund managers intend to put cash in to commercial property in the coming months

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Fund managers to sink cash in to commercial property. Two out of three investment fund managers intend to put cash in to commercial property in the coming months

Two out of three investment fund managers intend to put cash in to commercial property in the coming months.

Many still see commercial property as a good investment although they expect portfolio values to stand still or fall during the next three to six months.

Almost half of property professionals (46%) from medium-to-large businesses expect no change in market performance, according to the latest Commercial Property Confidence Monitor from Lloyds Banking Group.

Average commercial investment values have risen around 2% since March.

“Commercial property values rose by 0.1% in August, and the levels of confidence we’ve seen appear to reflect the wider plateau in rents and yields across the industry,” said Richard Dakin, head of Lloyds corporate real estate business support unit.

“Net confidence may have fallen since the last quarter, but this adjustment is probably a far more accurate reflection of today’s market fundamentals.”

Commercial investment returns to improve

Another commercial investment property survey this week, by JP Morgan Asset Management, showed the majority of institutional investors expect returns from real estate assets such as commercial property to improve over the next two to three years.

The survey polled pension funds and other institutional investors on where they are allocating their money.

Over half (56%) said they are either investing or plan to invest in commercial property.

Fidelity Investment Managers has put £85 million in to industrial sites and offices across the UK in recent months.

“We have consistently grown over the past four years, when many of our competitors were doing the opposite and delivered very strong performance for our clients,” commented Neil Cable, head of European real estate for Fidelity.

Santander, the Spanish bank, is also planning to spend £500 million on hundreds of offices and retail branches that it trades from in the UK to consolidate balance sheets.

If you are looking to purchase commercial investment property and require funding or advice on using pension schemes to achieve this please telephone our Customer Care Team on 01603 894525 and they will be pleased to refer you to a suitably qualified adviser.

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