London investment returns might be on the up as signs of a global economic recovery begin to surface.
The recovery may take years but there will be positive points to focus on, such as the rebound of property shares in the global index, according to Investment International. Patrick Sumner, portfolio manager of Henderson Global Property Companies Limited said: “Most property companies around the world, Real Estate Investment Trusts (REITs) or otherwise, are in reasonable financial condition, having repaired their balance sheets, where necessary, with fresh equity”.
He continued: “There is rental growth in the office sector and we will soon see the start of some speculative office development to take advantage of an expected shortage in 2013 and beyond. In the absence of bank finance for developments, it is only those with existing planning permissions, substantial balance sheets and development skills that will press the button, and these are mainly REITs”.
Sumner believes the rise in activity is not due to employment growth but due to a reorganisation and shortage of new viable office space.