Internationally acknowledged as achieving consistently sound returns - despite market fluctuations - over the past 30 years, prime UK commercial property is highly sought after by private and institutional investors around the world.

Not only does the demand for such quality properties far outweigh the supply - as a vast international market competes for a slice of what represents a geographically limited area - the entire process of acquiring prime, blue-chip UK commercial properties, which will then provide potential investors with extremely rewarding and secure investment returns, involves an exhaustive process of due diligence and market research, coupled with a keen eye for low risk, high return opportunities.

"It also requires considerable international experience and a personal global network, financial backing and acumen, and the credibility to perform consistently in the marketplace," says Eric Mounier, who heads up a company which specialises in this lucrative niche market and which is a JV between Golding Commercial Properties and Athanor Offshore Property Investments.

Swiss-born Mounier was also co-founder of Appleton, and subsequently co-founded this JV in 2001. Other members of the initial team are Marco Rapaglia and Rob Lundie. Born in Italy, Rapaglia was formerly an international partner of Accenture in France and Benelux and a director on the board of Accenture Belgium with management responsibilities across Europe. Now a full executive of the company, he is currently temporarily based in South Africa and is responsible for developing the JV's European market.

The South African-born Lundie draws from an extensive property development and acquisition experience of 15 years.

Says Mounier: "Southern African investors are gradually becoming aware of and increasingly receptive to the lucrative returns that are available through the UK commercial property market - albeit on a somewhat exclusive basis, as we prefer quality of investment rather than quantity.

Prime buildings such as our recent investment offering at Benbow House Upon Thames, which was fully subscribed in two weeks at a total capital investment of GBP 5 million, offers projected returns of 13 percent per annum, including four percent annual income. "Our latest investment opportunity, a property tenanted by Palmer and Harvey in mid-Kent Business Park in England, has a projected return of 67 percent over five years or 14 percent per annum.

These high returns are achievable as we structure the project for maximum return and minimum risk.

Whereas in South Africa, investment ratios in regard to commercial property are based more on capital growth, in the UK we project our investment portfolios on steady rental returns and capital preservation and enhancement.

"Bearing in mind that in the UK leases run for lengthy periods of 15 to 20 years, we are able to secure leases with upward only rent reviews, for tenures which are at least three times longer than the five-year investment period. Coupled with that is the strength of the tenants and prime location of the commercial buildings we select," adds Mounier. Comments Rapaglia:

"There's no doubt that investors are tired of below par returns from equities and investment-grade bonds and are increasingly turning to higher-yielding investments. Private investors are also putting substantial amounts of money into property as they look for what they consider to be stable investments, while low interest rates are helping them borrow money to buy properties - further fuelling the demand in the already strong UK market.

"The eight syndicated UK commercial properties which we have purchased over the past 18 months -which were all fully or even over-subscribed - have all benefited from this buoyant market, with strong growth in capital values. Our latest offering, a high quality distribution warehouse ideally located in the Golden Triangle of distribution in Kent, just outside London, is tenanted by Palmer and Harvey McLane Limited - one of the UK's largest distribution and wholesaling companies with the highest possible Dunn & Bradstreet rating of 5A1 Strong.

They are on a new 20 year lease with full repairing and insuring terms and with five yearly, upward only rent reviews, and with rent guaranteed to increase by a minimum of 15.9 percent at the first review. Investor participation is from a low entry level of GBP 25 000, with a target investment period of five years," says Rapaglia.

According to Investment Property Databank, the South East industrial sector of London has shown better returns than retail or office investments over the last 22 years. FPDSavills, with whom the Pam Golding Property group has a strong association, reports that industrial property in the UK has always been perceived as a popular safe haven for investors in difficult or volatile times - primarily due to the sector's lack of volatility, which tends to make it more popular as a longer-term hold, than a highly traded asset.

With representation through offices in Guernsey and Luxembourg, the JV markets carefully selected, quality commercial property to investors through Europe, Southern Africa and the rest of Africa. Based on a successful track record in the UK market, and with global experience and extensive market knowledge, the JV is in the process of sourcing further quality commercial properties with secure maximum returns in low risk environments in Europe countries which could include Belgium and France.

Ends

Issued by Gaye de Villiers Tel: 021 6837788 or 083 325 1939 On behalf of Golding Commercial Properties