Low risk UK commercial property yields high returns

Posted On Monday, 26 June 2006 02:00 Published by
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Fundamentally low-risk commercial property investment in prime UK buildings continues to yield high returns

Fundamentally low-risk commercial property investment in prime UK buildings continues to yield high returns, and in line with this, the JV between Pam Golding Commercial and Athanor International Property Investments has announced that it has achieved returns in excess of 31 percent per annum over a four year period for investors in a blue chip building in Sheffield.

Comments Eric Mounier, CE of the Athanor/Pam Golding Commercial JV: "Acquired in June 2002, this property, which is in a prime location in the city of Sheffield in the UK and tenanted by Alliance & Leicester, a FTSE 100 company, was sold in May 2006. These exceptionally high returns considerably exceed the original projections of 17 percent per annum, and highlight the excellent results the JV is achieving for investors - in UK currency and in a low risk environment.

"The JV's ongoing commitment is to source, research and deliver prime investment quality commercial properties in excellent locations with strong tenants, and the success being achieved continues to attract an exclusive worldwide group of clients into repeat investments, underlining their ongoing investor confidence in such investments and the JV itself," adds Mounier.

Since January 2006, the JV has purchased for investors five high quality commercial investment properties, all of which are situated in prime locations in the UK, and have a combined value in excess of GBP25 million.

Similar opportunities are being pursued in the growing German market - with the focus on new retail commercial centres that are well located, with strong tenants and long leases.

In the UK, the strong property market has seen many of the city centres experience substantial growth and regeneration and this is expected to continue to influence the demand for investments in commercial property.

According to a property review from the Royal Institution of Chartered Surveyors, expansion in the business and financial sectors has helped increase demand for office space, raising confidence in the outlook for office rents which are already at their highest level since 2001. While retail sales remain subdued, the market for well located and tenanted retail properties continues to enjoy strong demand. According to research from Investment Property Databank, commercial property values grew by 12.7 percent in 2005 after similarly impressive growth of 11.4 percent in the previous year, indicating that this remains a strong investment class.

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Publisher: Pam Golding Commercial
Source: Pam Golding Commercial

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