The number of financial services and real estate companies promoting UK commercial property as a low-risk rand hedge investment has grown in recent months reports Finance Week.
Analysts say this new focus comes amid growing fears that the UK house price boom could soon implode and South Africans are switching funds from London flats to office, retail and industrial developments.
One of the advantages of commercial property investment over residential is that it is relatively hassle-free - tenants (and not landlords) are responsible for maintenance as well as carrying the additional costs of rates and insurance. Another bonus is exceptionally long leases - usually between 15 and 25 years compared to three to five years, which is the average length of lease agreements in SA.
These investments are usually marketed as property syndicates but another option is to invest in Liberty International, the UK property group listed on the London and Johannesburg Stock Exchanges.
Publisher: Liberty
Source: Liberty

