X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONDON-Limited partnerships are now the most popular form of indirect property investment, according to new research from property consultant DTZ. The firm calculates that £11 billion ($16 billion) is now invested in more than 90 limited partnerships, more than is invested in all other indirect vehicles apart from property company equities.

The ten largest limited partnerships accounting for at least £3.5 billion of total investment between them. And DTZ Research estimates that 55 of the main pension funds, life and insurance companies have now invested in these structures; as they have become widely accepted as a means of indirect property investment. Insurance companies and pension funds together account for nearly half of all limited partnership investors. However, the pace of growth in the market has slowed since its peak in 1999 when 25 new partnerships were established.

DTZ believes partnerships are most effective when they focus on specific property types such as shopping centres, factory outlet centres, residential or leisure investments which require specialist and often intensive management, but to attract investors they need a strong rationale to justify the additional costs of management.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.