Commercial Property Guide For Financial Advisors




Press Release

The IPF has just launched ‘Understanding UK Commercial Property Investments: A Guide for Financial Advisers’ 2015 edition at a breakfast hosted by the Personal Finance Society (PFS).

More than 50 financial advisers attended the launch, which saw presentations by: Mark Clacy-Jones, Vice President and Head of Applied Research at IPD / MSCI, on the UK commercial property investment market & performance measurement; Philip Nell, Senior Director and Head of European Retail Property Funds for Aviva Investors, on commercial property as an asset class for retail investors; and Melville Rodrigues, Partner at law firm CMS Cameron McKenna, who outlined considerations relating to the legal and tax structures of property investment vehicles.

Sue Forster, Chief Executive of the IPF, who chaired the Working Party that produced the Guide said:

“We are delighted to launch the fourth edition of the Guide with the PFS. Our collaboration on this publication extends right back to the first edition, which was launched at the Society’s annual conference in Birmingham in November 2003.”

“The Guide is intended to provide an objective overview of the attributes of UK commercial property as a mainstream asset class and an outline of the commonly-available product structures through which investors are able to access the market, should direct property purchase not be the appropriate route.”

“Every edition of the Guide mirrors the evolution of the market; the second and third editions mark the move from the consultation with Government about the possibility of introducing tax transparent real estate investment trusts (REITs) to their introduction in 2007.”

“The fourth edition provides information about property authorised investment funds (PAIFs), which are unlisted funds taxed in a similar way to REITs. It will be interesting to see what changes occur in the market by the fifth edition.”

Mark Hutchinson, Head of Marketing at the Personal Finance Society and a member of the Working Party commented:

"Commercial property investment can offer consistent and sustainable income returns with a low correlation to the other main asset classes. In a low interest environment it may offer an attractive constituent of a balanced longer-term investment portfolio.

"The Guide provides an excellent overview of the relative merits of the different types of investment vehicles and their tax treatment, which will be of use to professional advisers when recommending indirect commercial property investment to their clients."

Understanding UK Commercial Property Investments: A Guide for Financial Advisers