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&#39Commercial property is offering real value&#39

Returns on commercial property have outperformed equities and bonds over the last five years, offering investors a real alternative to these asset classes, claims Edinburgh Fund Managers property adviser Robin White.

White, who advises on the Edinburgh portfolio property fund, told the Senate Programme that despite tales of doom and gloom surrounding the residential property market, commercial property represents an excellent opportunity to investors and is no longer the poorer cousin of equities and bonds in terms of investment return.

He said property is a tangible asset which had the characteristics of both equities and bonds but without some of their downsides.

White explained how equity and bondholders lost their capital following the default and collapse of US energy firm Enron whereas the property owners merely had to re-let to someone else.

He said: “Commercial property offers real assets and real value. Its performance is not correlated with equities and therefore it offers a good hedge against stockmarket volatility.”

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