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UK offers low-risk, high-reward investment opportunities | 18 December 2013

Returns in the commercial property market are set to reach the best result in recent years, one analyst has forecast.

Fund manager of F&C Investments, Guy Glover, has claimed that continued strength in the commercial property market has meant that high income returns could be on the horizon, whilst risks remain relatively low, investmenteurope.net reports.

To achieve this, he said, investors simply need to adopting either a “core” or “core plus” strategy. Put quite simply, this means that good quality-well let buildings can be bought at reasonable prices but then go on to offer a solid income return.

This may seem like a simple, too-good-to-be-true option, but Glover suggested it is more than possible for those with rigorous testing processes in place. Anyone, he argues, who can accurately identifies properties where the level of income can be grown should then be able to secure these low-risk high-reward solutions.

Such things to look out for included buying at rebased rental levels and buying where demand is high – or forecast to remain high over the foreseeable future.

On the subject of location, Glover told fundweb.co.uk: “In the UK regions, potentially attractive assets may have been indiscriminately shunned on locational grounds during the downswing, but as the economic outlook has improved, investors have started to look more closely at the opportunities the regions can offer.

“The South East office market has been a major beneficiary of this trend with an income return of more than seven per cent per annum, supported by spillover from a buoyant Central London market.”

The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.

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