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Further Learning

Here we focus on Asset Classes (Commercial Property).  

Asset Class - Commercial Property

An Introduction

Commercial property, a form of real estate.

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The commercial property sector includes physical assets including: (1) Offices ; (2) Shops, including retail parks; and (3) Industrial.

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These assets can be held directly or through private equity vehicles, as joint ventures or as club deals.

 

The way in which an individual commercial property is owned will affect its value in the open market, as will the risk of depreciation (physical and economic) and obsolescence.

 

Commercial property is typically held either privately or institutionally, mostly through open or close-ended (limited life) funds.

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Many factors need to be considered. For example, (1) Location; (2) the quality of the building and its suitability from a tenant perspective; (3) the creditworthiness and status of the tenant; (4) the length of lease in place and the likely initial and reversionary capitalisation yield after (5) the cost of debt funding.

Commercial Property and Workplace Pensions​

 

Millions of individuals have holdings in commercial property through Workplace Pensions, such as NEST.

NEST Corporation kindly provide a list of more than 2,500 companies, in which their Workplace Pension investors may have holdings. Below we show 5 of them with links, where further information can be found from the Financial Times or other sources:

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  1. Aldar Properties

  2. British Land REIT PLC

  3. CapitalLand Integrated Commercial Trust

  4. Digital Realty Trust REIT

  5. Emaar Properties

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Through the Financial Times links, information about many other companies can be found. Perhaps you can guess which Nest sector screen applies to each of the 5 shown above?

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