Commercial property

We invest in commercial property by using open-ended property funds, real estate investment trusts (property shares) or syndicated property investments. All three can hold retail, office and industrial property assets and may use leverage. Both open-ended funds and syndicated investments benefit from stability in bricks-and-mortar valuations, although they can suffer from periods of illiquidity.  Real estate investment trusts trade on the stock market. They reflect the volatility of the equity market but always allow funds to flow in and out of them. There are periods when real estate investment trusts trade at large discounts to their underlying asset values.

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Five year percentage change in UK Commercial Property, source Bloomberg.