BCO: Commercial Property can out perform Reits


The British Council of Offices (BCO) has claimed money invested in commercial property can out perform Real Estate Investment Trusts (Reits).

Its chairman, Matt Oakley said he thought the average Reits share price had fallen further than commercial property values.

Comparing a £100,000 investment made in January 2007 in both, he noted “you would be feeling a lot happier with your direct property investment rather than your Reit”.

A Reit is a company that trades in real estate assets and allows investors to put money into a portfolio of properties.

They were introduced by the government in 2007, before the current economic crisis had taken hold.

The Financial Services Authority has previously warned it would “take robust action against advisers giving poor advice” to investors.

It said they “must understand the risks of investing in Reits and know how Reits compare with other property investment vehicles”.ADNFCR-1329-ID-18708239-ADNFCR