In a recent AMP Capital article (see attached) commercial real estate/ property was being positioned as a good option for investors. Used as a part of a multi asset portfolio, commercial property can provide an attractive rate of return compared to its underlying risk, a low correlation to other assets which assists with diversification and lowering risk as well as providing additional protection in relation to inflation (i.e. the costs of living).
The additional benefits for investors looking to invest in commercial property are:
- Gearing/ borrowings on commercial property tend to be quite low which promotes stability and lowers risk
- That it is a great fit for Australia’s current economy with its roaring population, high infrastructure spending and positive business confidence
- That this class has outperformed other classes by delivering the highest risk-adjusted returns over the past 20 years
- That it is a lower volatile asset class due to a high proportion of returns being generated by income rather than capital appreciation due to having longer-term lease agreements of 15 years plus.
The team at PE Capital understand the commercial property assets markets and benefits of being involved. As a result, PE Capital have developed a number of solutions for investors to become involved in this growing asset class and invite you to get in contact to understand how commercial property investments may be a good option for you.