Seven Dials: commercial property offers better returns than five year bonds

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There is "light at the end of the tunnel" for the UK commercial property market, with the sector now offering better risk-adjusted returns than five year bonds, according to Seven Dials.

The fund manager added that as commercial property prices reach historic lows and values continue to fall, the time is ripe for investors to snap up bargains. Mickola Wilson, director, said: "Our preferred valuation indicators suggest that the UK market is now at a tipping point and prices are extremely good value. This is certainly a good time for investors to look at entering the market. "Yield levels, even allowing for generous risk premium, are well above those of bonds and there is every expectation that interest rates will also fall significantly over the next six months. Therefo...

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