Following the strong rally in Equity markets many Investors are looking to lock in the gains and redeploy cash into lower volatility alternatives. With cash and bond yields at historic lows the initial yield on Prime UK Real estate assets at around 7% is considered attractive.
Most acknowledge that the fundamentals in occupier markets remain week and are yet to trough but at the current cap rate this is more than compensated for.
At the same time as the funds look to increase exposure we have the Listed Property companies positioned to utilize their recapitalized balance sheet strength to make accretive acquisitions – and suddenly there are few sellers of prime quality assets.
See Full PDF Report attached
Publisher: eProp
Source: Catalyst