Independent financial advisers have conveyed a return of confidence in the UK commercial property market for the first time in two years and are returning, according to a report from ifaonline.co.uk. IFAs are said to feel positive that the property sector is on the rise and that there are high returns to be made within the commercial market.
Standard Life Investments launched Standard Life UK Property this week, a ?175 million property investment fund for the UK commercial sector. At the moment, it is experiencing returns of 6.6 per cent.
Investment director of mutual and life funds for Standard Life Investments, Barry MacLennan said: ?We have seen a trough in the UK commercial property market and there are a number of triggers continuing to support the environment. In May and June several big property companies conducted rights issues, meaning there is a large amount of cash on balance sheets waiting to be invested, while the lending environment for property has improved ? quality management teams can now source loans from banks.?
Mr MacLennan added: ?We will be disappointed if we do not see ?35-?50 million in new sales by the end of the year.? He is not alone in feeling confident about the UK commercial property market. It seems confidence has returned across the sector.
Investment director at Whitechurch Securities, Gavin Haynes commented: ?Some property managers are saying we are there already at the bottom of the cycle, but our own view is it will bottom next quarter. There is no need to rush in, but the yields are compelling and justify asset allocation to the sector.?
