Middle-eastern Investors show confidence - commercial mortgages

28 March 2008

In news that may interest those thinking of taking out commercial mortgages, it has been reported that investors from the Middle East are returning in large numbers to the commercial property market in London.

This week has seen CPC group selling two hotels in Kensington to an investor from the region for £320 million, reports Property Week.

Co-founder of the firm Nick Candy told the magazine that investors would still pay "top dollar" for high end investments in a location such as London.

The company added that it frequently received similar offers for items in its London property portfolio.

Yesterday Legal and General fund manager Rob Martin told the Times the London property market is likely to see a varied year in 2008, starting with a difficult first half.

"But in the second half the picture could be a lot brighter as yields stabilise and total returns move back into positive territory," he predicted.