Storm in a teacup?
- Andrew Watson
- Jul 13, 2016
- 1 min read
The panicked closure of several real estate funds made the news, but was little understood by the mainstream public, who were more concerned by doom laden predictions of residential property corrections.
Following Brexit motivated draw downs, several funds are now pushing through sales of prime assets to increase liquidity. However, speculator expecting a significant market correction may be disappointed. The recent sale of Debenhams flagship Oxford Street store by British land had an estimated yield of 2.75, and early bids for buildings being marketed by Aberdeen, are 50 basis points higher that before the Brexit vote (FT, 2016).
Our view, there will undoubtably be pockets of discounting, but the real winners in this storm in a tea cup will be agents and solicitors.
