Standard Life expresses confidence in commercial property market

Posted 20/08/2009

The commercial property market in Britain could be on the way to recovery, Standard Life has suggested.

Barry McLennan, an investment director at the company, said the outlook for the sector has improved considerably in the last few months.

Indeed, he said he believes it is bottoming out and that a number of factors are supporting the market at the present time.

“In May and June several big property companies conducted rights issues, meaning there is a large amount of cash on balance sheets waiting to be invested,” he commented.

Mr McLennan also noted that the lending environment for commercial property has improved, which means quality management teams can now obtain funds from banks.

He added that he would be “disappointed” if there are not at least £35 million worth of commercial property sales in Britain by the end of the year.

This comes after Oliver Gilmartin of the Royal Institution of Chartered Surveyors said there are “definitely some positive signs” that the market is bottoming out.