Marcus Phayre-Mudge At the TR Property Investment Trust AGM said that the commercial property market is in good health. This is reflected in the profits of the trust whose net asset value returned 14% and its share price rose 27%. Thought 62% of the trust’s profits came from their European property investments, their UK portfolio did well.
Phayre-Mudge said that overseas buyers are attracted to
the UK commercial property market because of the weak value of the pound. He recognises that discord in the European Union rising oil prices and the rise of US interest rates threaten the commercial property market. Investors should proceed with care to find good returns.
TR Property is cautious about investing in retail property. Their view is that:
“Retailing will get more difficult before it gets better, with rents needing to rebase and valuations heading downwards. There are few transactions, but these are at 10% below asset value.”
Whilst physical stores are struggling, online retailers are doing well and this makes logistics centres attractive for investors. Other growth areas are student accommodation, self-storage, and healthcare. Phayre-Mudge added that the office space sector in central London is strong.
Looking at the strategies of large investment organisations such as TR Property Investment Trust can help guide smaller investors to find the most profitable categories of commercial property investments. They can be assisted by brokers who can find the best commercial mortgages and bridging finance loans for their property deals.
