Commercial Finance Specialists

Investors are being attracted to the high yields of commercial property, it is claimed, as capital growth looks like reaching a plateau.

The high yields offered by commercial developments are making them increasingly attractive to property investment firms, it is claimed.

In an article for the Financial Times, leading industry investors agreed that the slowing growth rate of commercial property values indicates capital growth is about to reach a plateau.

Instead, investors must start looking to look at the income these properties generate and how to maintain it, Fiona Rowley, fund manager of M&G's Property Portfolio unit trust told the publication.

On the subject of investment funds, financial adviser Hargreaves Lansdown says commercial property funds should account for no more than five per cent of a portfolio, while they should be viewed as long-term investments.

Paul Guest of real estate agent Jones Lang LaSalle agrees: "Investors can't be lazy any more with commercial property.

"There are really good opportunities for securing safe growing income by picking the right funds."

Last week, Helical chief executive Michael Slade claimed that now was an excellent time to be investing in commercial development projects.

Posted by Tess Nelson.