The head of the Premier Pan European Property Share fund predicts that capital growth in the commercial property market will grind to a halt.
The manager of a major UK
property investment fund has suggested that the UK
commercial development market is set to see a halt in capital growth.
Alex Ross, manager of the Premier Pan European Property Share fund, says that the emergency Budget announced last week has harmed prospects in the commercial property sector, according to City Wire.
He explained: "We have 25 per cent of our total exposure in UK turnaround stocks and property asset managers now, as we won't see much more capital growth.
"I am looking to increase the position in turnarounds further."
In addition, the Budget will lead to pressure on commercial development assets and many will end up in distress, which further plays into the hands of asset management firms, he told the news provider.
RBS recently announced it would be selling £15 billion of commercial property each year, in order to reduce the number of distressed assets it holds.
Posted by Tess Nelson.
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