As part of a major advancement, it has been affirmed by Thames River Capital that it is all set to bring to the fore its Ucits long/short Real Estate Securities fund this quarter. What shall be the first and foremost aim of the fund? It has been learnt from the company that the aim will be to proffer investors “market-plus returns and a measure of downside protection within a regulated structure” and will be operated by James Wilkinson and Marcus Phayre-Mudge.
It is to be noted that the fund will be benchmarked against the FTSE EPRA/NAREIT Developed Europe Capped index. Nevertheless, it will have Ucits III flexibility, with gross exposure limited to 80-160 per cent and net exposure to 60-140 per cent. Commenting on this Mr. Wilkinson stated very clearly that rental yields were still greater than 7 per cent in Europe and the UK, making property an attractive prospect for income seekers.
“Listed property companies have recapitalized their balance sheets and reset their banking covenants to the extent that the majority are now on a sound commercial footing,” he said. “Most are now buyers rather than sellers of property.”
In the meantime, multi-asset investors such as Armstrong Investment Managers have expressed concerns in relation to areas of the commercial property market, terming economic headwinds could still push down rental income.
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