Greg Nicholson, Head of Investment at CB Hillier Parker pointedout that the figures cover a period well before 11 September, andthat the full impact of that those events would not be felt untilthe fourth quarter of the year. But he said: 'The figures for thesecond quarter show that institutions are sustaining their interestin property.'

Nicholson forecast that property would be seen as a safe havenfor investors. 'When set against the sharp reduction in the equitymarkets in the last two weeks, on top of the falls earlier in theyear, and an uncertain future, the high-income yield of propertywill provide some stability to property returns,' he said.

But he warned that falling equity values meant that many fundswere close to the limit of their allocation to the property sector,and they would therefore have balance acquisitions with sales tomaintain weightings. Equally, Nicholson expects funds to becautious about stock selection. 'We expect investors will beparticularly cautious about properties let to tenant companies mostlikely to be adversely affected by the events in America. Thisinevitably focuses on the financial services industry in the City,and Western Corridor offices where US occupiers were particularlyactive in the last few years,' he said.