Now is a "once in a cycle" opportunity to get in to real estate, according to Simon Hedger, senior portfolio manager, property securities at Principal Global Investors.
Hedger noted that the sector was one of the first casualties of the credit crunch and considers that it is now poised for recovery. He explained: "At the beginning of 2007, the risk premium for real estate had narrowed to an unsustainable low for the cycle. This was based on the assumption the strong growth for commercial property assets from 2002-2006 would never end. "However, by the end of September 2008, the down-cycle for property had re-priced the listed real estate sector back towards the upper-end of its long-term spread, providing an attractive premium and building in a signi...
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