Commercial mortgage holders 'could see rebound in rent and values'

06 July 2010

Written by Simon Whittaker

Commercial mortgage holders in London may see a rise in the value of their assets and an increase in the amount they earn from rent, as one investment firm has cited these benefits as its motivation for setting up a real estate fund in the city.

Rudolf Wolff hopes to offer a net income of up to seven per cent per year, with 15 to 20 per cent total returns, through holdings on Park Lane, Grosvenor Gardens and Westminster, according to Investment Week.

Ian Besley, Robert Hacking-Brian and Anthony Farrant are managing the fund and hope to see it mature in five to seven years.

"We are beginning to see a sharp rebound in both rental and capital values and seek to capitalise on this trend," Mr Farrant told the news provider.

Mr Hacking-Brian said that central London's commercial properties were "recession-proof", attracting speculation from overseas, which ensures a stable future, the information source said.

Indeed, media manager at the British Property Federation Andrew Teacher recently suggested that foreign investment in the city's real estate would be increased by "favourable conditions" in the sector.

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