The UK economy had a strong start to Q3 2018, output grew by 0.7% for the three months to August, an uplift of 30bps from Q2. All three sectors of the economy: services, construction and the production sector contributed positively to GDP growth, with the service sector (accounting for c.80% of the UK economy) providing the largest positive contribution to the headline figure.
According to the “Findings of Project Pool”, a report which has formed the basis of discussion between the Local Government Pension Schemes (LGPS) and the Government on the best way forward with the asset pooling initiative, the greatest savings from real estate pooling will arise from the migration from indirect to direct ownership.
UK commercial property has had a good run; over the one, three and five years to December 2017 the asset class has delivered 8-11%p.a. total returns for investors, significantly outpacing UK bonds and closely matching the returns from UK equities.
This case study demonstrates how DTZ Investors was able to arbitrage between the direct and indirect UK property market in order to maximise returns for our clients.
DTZ Investors delivers continued outperformance in 2017