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Commercial UK property looking good, says F&C

21 February 2005
The commercial property market in the UK is healthier than ever, property experts F&C Property Asset Management have revealed.

Michael Barrie, the company's director of property funds, forecast total returns of 8.8 per cent per annum on commercial property investment in the next five years.

Mr Barrie's prediction came after the announcement of the end of year and interim results of the stock exchange listed trusts Isis Property Trust (IPT) and Isis Property Trust 2 (IPT2), whose portfolios of UK commercial properties are managed by F&C.

The net asset value per share has increased by almost a quarter over the last 15 months at IPT, whilst the same value at IPT2 has risen by 15.2 per cent and the share price by 9.8 per cent.

"The 2004 out-turn was the highest we have seen for ten years and reflected continued strong investor demand," Mr Barrie commented.

He added: "Interest rates remain low by their historic standards and the relatively benign economic is also supportive to commercial property."

Mr Barrie went on to make strong predictions for the commercial property market, both in terms of financial gains and a narrowing of the gaps in performance between retail, offices and industrial properties.

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