Commercial property funds tipped to provide 25% return over three years
Commercial property could provide investors with a handsome 25% return over three years, it is claimed. According to Scottish investment firm Standard Life Investments building a diverse portfolio stretching across the globe could produce significant returns relative to the likes of corporate bonds. In its latest quarterly briefing, SLI said capital was beginning to flow back into the world’s prime bricks and mortar sites, despite pressures on rents and the overhang of properties held by commercial banks. Andrew Milligan, SLI head of global strategy, said despite the risk of a double dip recession careful investment in the asset class could trigger a noticeable spike in profits. Milligan said putting money into the world’s fragile property sector could secure investors a slice of Europe’s increasingly lucrative market and profit from an improvement in sentiment. The strategist added that while there were perhaps some pitfalls linked to property, mainly within the asset backed securities market, he was encouraged by the inflows into the asset class.