As far as commercial real estate is concerned, the old adage holds true from a micro perspective, but the events of the last 24 months have shown market timing is paramount
The commercial sector has re-priced by approximately 44% since June 2007 and with a recent but marked slowing in the rate of capital decline, this is leading many to re-examine the sector. In the listed space alone, over £4bn has been put into the sector this year, either to recapitalise through rights issues or with the IPO of new vehicles looking to invest in the opportunities presented by a correction. Understanding the way real estate is ‘valued’ or priced and the different pricing structures of indirect investment is paramount to establishing future performance of such vehicles. ...
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