Property investment ''bouncing back'' - commercial mortgages

14 January 2008

An improvement has been seen in the price of commercial property shares on the stock market, which may be a hint that the industry is starting to recover from the recent downturn.

Writing in the Guardian, expert Nick Fletcher stated that several companies had seen some good news as fresh developments were going ahead, which may be welcomed by those with commercial mortgages.

Mr Fletcher noted that shares in property developer Hammerson were lifted partly by news that its proposed Eastgate scheme in Leeds will include a Marks & Spencer store.

In addition to this, he said, the firm was boosted by the positive comments about the company and the overall market by investment firm Lehman Brothers, which commented: "We believe momentum has swung too far and the sector is set to rebound."

News of Laxey''s new £1 billion acquisition fund has also fuelled optimism that commercial property in Britain is poised to bounce back, Sharecast reports.