Commercial Finance Specialists

Commercial development investments are expected to secure total returns of 8.5 per cent per annum over the next five years.

The commercial development asset class will secure returns of 8.5 per cent per annum over the five years beginning January 2010, according to new research.

This will see it outperform equities and bonds, the Scottish Widows Investment Partnership (SWIP) forecast indicates.

Improvement across asset leasing rents and capital growth value are expected to drive this trend.

Commenting on the research, SWIP head of property research Dr Ed Trevillion said: "Over the first half of this year, we have seen an improving trend in the figures coming through for property fundamentals.

"That said, returns in 2011 are forecast to remain weak for the UK commercial property market as the UK economy remains fragile and testing times continue in Europe."

Earlier this month, the British Property Federation warned that any changes to the tax relief extended to debt could have a disastrous impact on the commercial property market and the wider economy.

Posted by Hadji Singh