Investors urged to sell commercial property
Published 19/05/2010 | 05:00
IRISH investors are being advised to sell sooner rather than later in the UK.
According to the latest CB Richard Ellis report, the value of prime commercial properties in Europe increased from 2009 lows by an average of 5pc to a prime yield of 6.03pc over the last nine months. As many as 22 of Europe's 49 office markets reported improved valuations with prime office yields averaging 5.95pc.
The improvement will help boost demand for properties that a number of Irish investors and developers seek to sell, including Avestus Capital Partners, formerly known as Quinlan Private, which is negotiating the sale of its 3.5 acre Knightsbridge estate in London for around €650m. Cosgrave Brothers are also selling retail properties in the West End. About €15.9bn of NAMA loans relate to UK properties.
However, Jones Lang LaSalle, points to warnings about a possible doubling of capital gains tax to 40pc in a UK emergency budget next month, although reports suggest this may impact more on residential investors.
The Investment Property Databank also reported the UK commercial property recovery may be running out of steam as values of properties rose by just 0.8pc in April -- the slowest rise in capital values in 10 months.