Initially, the fund will comprise 31 properties, predominantly in Southern England, and diversify risk by offering a number of tenancies. "We believe the business sectors, industrial and offices, will deliver the strongest performance and provide the most attractive yields," says Andy Rofe, director of UK Fund Management at Invesco. "The fund is strategically over-weight in these sectors, particularly the industrial sector where there is a 50% weighting.
"Property markets are complex and inefficient," he continues, "and we seek to add value though a research-driven investment process, aiming to maximize the predictability and consistency of returns and minimize the risk of capital loss. Long property leases can provide attractive and stable income, at an attractive margin over other assets such as bonds or equities. Commercial property has provided consistent returns over the past 20-plus years, and returns have beaten equities over three, five and 10 years."
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