Wealth Manager - Essential news for investment professionals

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Ignis says commercial property will deliver a blockbuster 11.5% in 2014

Ignis says commercial property will deliver a blockbuster 11.5% in 2014

The UK commercial property market will rise by 11.5% in 2014, more than 2% higher than expected, according to forecasts from the Ignis property team.

While the most recent Investment Property Forum Consensus Forecast predicted an average total return of 9.3% this year, the team think the actual figure will be higher, 'driven by a broadly broadly equal combination of income return and capital growth'.

But George Shaw (pictured), manager of the £1.1 billion Ignis UK Property fund, argued that this rally in the market will not result in a property bubble. 

He acknowledged concerns there would be a return to over-inflated property prices like those seen in 2007, but suggested 'yields can sustain a moderate re-rating over 2014, without moving into bubble territory' as average capital values are currently 30% less than before the crash.

Over one year to November 30, the Ignis Commercial Property fund returned 5.6%, compared to a 4.7% average for the IMA UK Property sector, making it third quartile, albeit in a peer group distorted by property shares funds. Over three years to November 30, it returned 10.2% compared to a sector average of 8%, making it second quartile.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Related Fund Managers

George Shaw
George Shaw
10/16 in Property - UK Physical (Performance over 3 years) Average Total Return: 17.84%
Citywire TV
Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Play Tesco, Japan and the rise of the central banker

Tesco, Japan and the rise of the central banker

 Libby Ashby and leading wealth managers scrutinise the food retail sector, Japan’s consumption tax hike and political risk in the markets.

Your Business: Cover Star Club

Veteran banker boosts Sanlam’s stockbroking team

Veteran banker boosts Sanlam’s stockbroking team

A veteran private banker has been recruited by Sanlam Private Investments to strengthen its advisory stockbroking team.

Wealth Manager on Twitter