Listed properties survey

Posted On Friday, 01 March 2002 10:01 Published by eProp Commercial Property News
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Trends in Listed Property

Institutional investment property exposure in the recent past has generally been reduced largely owing to the relaxation of exchange controls and the move from defined benefit to defined contribution pension funds, in turn prompting greater liquidity and choice of investment. With property exposure tending to have deceased in the 1990’s, innovations in property securitisation have subsequently greatly promoted liquidity.

Property-Housing-ResidentialCharles Ryan, JHI Real Estate’s national manager: asset management says that this has stimulated renewed interest and impetus in the sector since then - particularly in the past two years, where a number of technical factors, including lower volatility compared with other asset classes and lower interest rates, prevailed.

“Cash flow sensitive retirement funds tend to be attracted to the favourable income yield offered by listed property vehicles as compared with more conventional bond and money market type instruments, “ says Ryan.

He adds that liquidity and flexibility for smaller private investors has also been enhanced by the creation of property fund of fund (or unit trust) vehicles.

Last modified on Tuesday, 22 April 2014 10:09

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