Property investment
Commercial property
HFM Columbus has developed a specialisation in sourcing attractive commercial property investment opportunities through a wide range of property connections. The potential benefits of investing in this sector, include the following:
The resurgence of commercial property as an asset class has been caused by institutional re-allocation, for example by pension funds in an attempt to match long term liabilities utilising assets with a reduced equity correlation and long term predictable cashflows. This has been something of a reversal from an over-reliance upon equities which had grown during the closing decades of the 20thcentury.
The now confirmed introduction of Real Estate Investment Trusts (REIT’s) in 2006 provides an additional underpin to commercial property valuations.
A prevailing environment of stable, low interest rates, relative to property yields, provides additional value underpinning.
The tax efficiency of many individual deals can provide significant additional value.
An overall old fashioned preference for hard assets versus risky public debt and equity markets does not look like changing in a deflationary world
Low correlation with equity markets combined with, in many cases, yields significantly in excess of those available from debt issued by the same underlying credit provides an potentially attractive home for funds where liquidity is of secondary importance.
Commercial property provides fertile ground for finding “special situations” being a complex, diversified asset class offering significant potential opportunities for unlocking or developing embedded value.
Access is possible through International Real Estate Investment Trusts, Structured Investments, Limited Partnerships and funds.
There is also an increasing availability of holdings investing in international markets such as the US, Europe & the Far East which are non correlated with the UK and therefore deserve a place in a diversified international portfolio.