Commercial mortgage holders may focus on Londo

31 March 2011

Written by Steve Olejnik

Commercial mortgage holders may be concentrating on prime property in London, as one expert has claimed these assets are in vogue.

Lead director of Stephenson & Alexander in Cardiff Peter Graham explained in an article for Wales' Western Mail that investors are likely to concentrate on real estate in the capital city, but other areas may be seen as too much of a risk.

However, he predicted that the gap between prime and secondary property will narrow over time.

In the first quarter of 2011, UK property investment transactions have remained at around £3 billion per month, compared with £55 to £60 billion in 2005 and 2006, but he noted that buyers are taking on shopping centres outside of the capital, which they may not have considered purchasing before.

It is possible that the recent sale of Ayr Central Mall is one example of this trend, with the real estate being sold to investors from the US and England at a price of £33.8 million, according to the Scotsman.

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