Insurance News Archive

Commercial property 'attractive over the long term'

In spite of the recent troubles seen in the sector, commercial property remains an attractive long-term investment proposition, one expert has argued.

Just days after the commercial property giant Hammerson reported that it was well-placed to withstand any further economic downturns, investment advisor Graeme King has claimed that valuations look attractive when looked at through a five-year view.

In particular, in an article for the Newcastle Journal, he cited the recent rises in industrial and retail property prices in London, while maintaining that many companies are continuing to trade on "significant discounts to their asset values and paying income yields higher than the UK base rates".

He concluded: "So for the longer term the sector may be undervalued."

This comes as yet more positive news for investors in UK commercial property.

Just last week, the Birmingham Chamber of Commerce became the latest business group to call on the chancellor to aid the sector by bringing back tax relief for empty properties.

24 Nov 2008