MPL to increase exposure to commercial property
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Managing Partners Limited is looking to increase exposure to commercial property within its British property opportunities fund.
It says that there are some very strong yields to be obtained in the sector and many commercial properties are currently attractively priced for cash rich funds and investors.
MPL’s British property opportunities fund invests in both residential and commercial property, including distressed portfolios, high yield rental units, development opportunities, leasebacks and reversionary gains schemes.
Unti now the fund has focused solely on the residential property market but it is expected to move into the commercial sector this year.
However the firm warns investors to tread carefully and choose a property that is in a good spot with reliable tenants and which is undervalued.
MPL managing director Jeremy Leach says: “Commercial property values are now down by 41 per cent since their peak in 2007. This means that there are a number of attractive opportunities for us in this market and we feel that current yields, even allowing for a realistic allowance for tenant fallout, will provide a strong real return.”
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