Commercial mortgage news: Business property 'a good investment'

13 May 2011

Written by Steve Olejnik

People looking for commercial mortgages may be interested to know that one expert has said business real estate is a good investment.

According to the Financial Times, managing director of Threadneedle Property Investments Don Jordison told the Morningstar Investment Conference on Wednesday (May 11th) this is a good time to pour money into the sector.

"It is stable, it is reliable and it is zero correlated," he said, noting that commercial real estate is currently relatively cheap as the recovery has been slow.

The expert said that the value of property had risen by 16 per cent since 2009, noting that Bank of England's monetary policy may be of benefit to the sector.

"Quantitative easing could have been invented for commercial property," the Financial Times quoted him as saying.

The IPD also noted that property values have risen recently, reporting that they have increased by 19.9 per cent over the last two years.

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