For those who want to invest in commercial property, but either have limited capital or limited time, then investing in a listed property company is another way of benefiting from the commercial property market. There are many arguments for and against this form of investment such as lack of control and liquidity, versus high returns and spread of risk .
Also where the property is, the strength of the tenant, and the quality of the management are important factors. Anyone needing advice about this form of investment can contact me for independent advice.
Listed property companies outperform
Conor O’Brien | Thursday January 12, 2012
New Zealand’s listed property companies outperformed the NZX50 last year.
A Forsyth Barr report shows the NZX Property (Gross with Imputation) Index outperformed the NZX50 by over 11%. The listed property companies reported 11.8% growth compared to the NZX50′s 0.4% growth.
The listed property companies’ growth is attributed to 10.2% growth in the first half of the year and comes despite a 0.2% regression in the December quarter, Forsyth Barr analyst Jeremy Simpson says.
The Forsyth Barr report showed all the listed property companies had positive growth for the year with Kermadec and Argosy leading the way with respective gains of 30.6% and 17.6%.