COMMERCIAL PROPERTY FUNDS

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RESEARCH EXPERIENCE


Capel Court has considerable experience in analysing institutional commercial property funds for private clients, trusts and personal pensions.

Commercial property funds have very little correlation with either equities or gilts.

The major institutions own over 40% of the UK commercial market consisting of retail, industrial and office properties

Factors we continually monitor include:

  • Void rates
  • Rent reviews
  • Sector spreads
  • Quality of covenants
  • Lease management
  • Geographical spreads
  • Average lease lengths
  • Volatility compared to cash
  • Levels of cash and future plans

Rental income from a commercial lease ranks higher than bank borrowing and second only to HM Revenue and Customs. It is the main component of the total return.