cal part 27 Oct 2009 12:21
The upturn has convinced some of the most sceptical investors to reconsider the sector. Last week, Peter Hargreaves, chief executive of Hargreaves Lansdown, the adviser, said he was positive about the sector for the first time.
A number of funds have also been launched. Last month, BDO Stoy Hayward Investment Management launched the UK Strategic Income Property fund with plans for 10% yields.
Retail investors are also piling in. Last week, TD Waterhouse, the stockbroker, said listed commercial property companies such as Songbird Estates, which has a stake in London’s Canary Wharf, entered its top 10 list of the most-bought stocks for the first time in 18 months.
Caan told The Sunday Times he plans to launch his fund, which will require a minimum investment of £200,000, within six weeks. It will target properties, mostly offices, worth between £15m and £30m, with long leases.
He is already eying up properties, including a Ministry of Defence building with a 15-year lease and a yield of 7.25%. “We are looking for these long-term quality tenants to ensure a regular income,” he said. “The fund is very much geared towards fixed income generation.”
The fund will be launched by Hamilton Bradshaw, Caan’s private-equity business, in partnership with ING Real Estate Investment Management.
Chris Morrogh at Threadneedle has been increasing his commercial property holdings. “Although it may be too late to buy a