Commercial Property Investment

Commercial Property Investment

Norwich Union has moved back to monthly valuations on its property fund range following a slowdown in redemptions.  They had been operating on fortnightly valuations across its property funds, including the £2.5bn Norwich property trust, since December after a surge in volatility across the asset class led to widespread redemptions.

The Norwich property trust has been one of the worst hit funds, having fallen from over £4bn in August 2007.  The trust’s cash level has risen in the past month to 6.7 per cent, with 93.1 per cent invested in direct property and 0.2 per cent in property shares.

Our view

The tide is turning for commercial property.  For those who have stayed invested and held your nerve, well done.  For those who are thinking about it, now is the time to invest.  Remember, buy low sell high.

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