GOLDING Commercial Properties, in a joint venture with SA-based Athanor Offshore Property Investments, has sold UK commercial property worth £23m to SA and European investors in the past 12 months.

This, the group says, is the result of a rapidly increasing demand for offshore commercial property investments. Peter Golding, CE of Golding Commercial Properties, says the UK commercial property market has traditionally been targeted by foreign investors.

"In 2002, foreign private investment totalled £800m because of its stable returns and attractive property economics long leases, strong yields, low interest rates, upwards-only rent reviews and so on," says Golding.

"Such commercial properties are sought after as they provide a counter-cycle to equity investments and are backed by cash flows from strong tenants comparable to a corporate bond-style investment."

Growth market towns surrounding London such as Colchester, Bury St Edmonds and Basingstoke have proved popular. Research from UK real estate group FPDSavills projects 6% growth in the retail sector of the UK's commercial property market this year.

Jun 11 2003 07:46:34:000AM Business Day Reporter Business Day 1st Edition