Property investment to be strong in second quarter

Wed, 26 Jul 2006

Despite concerns voiced by some market commentators, at least one asset manager is predicting a strong second quarter in the UK property fund market, with further investment expected.

Following good performance in the first six months of 2006, Sandy Thomson, the manager of Resolution Asset Management's UK property investment fund, is positive about investment levels in the property market.

"For the year to date property is ahead of both equities and gilts," he stated.

According to Mr Thomson, Resolution Asset Management has £40 million worth of acquisitions currently under offer and though the second half of the year is not expected to match the performance made in the first six months, their forecast for the whole year remains at 15 per cent total return.

Describing the market's potential for further investment, Mr Thomson commented: "Although the fund's holdings are spread across the UK, the portfolio is weighted towards the South East.

"It is predominantly the office sector and the Central London sub-markets which have performed so very well - not simply in terms of capital growth but rental growth too."

Resolution Asset Management's company, Resolution plc, which was created in 2005 following a merger of Resolution Life Ltd and Britannic plc, currently has total funds under management in the region of £36 billion.

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