Apart from a significant cash holding, my portfolio is totally invested in equities and I feel that it is time for some diversification. I am very uncomfortable with bonds and am looking at property, not private residential but industrial, commercial or student accommodation. Has anyone any suggestions for IT’s or stocks ?
Are you looking to invest in property for income, diversification or growth @Shetland ?
I like TR Property, though it’s mainly a property securities trust, that is, it invests in the shares of property companies Europe wide, though they also own a few large properties direct in the UK.
I like a couple of specialist property funds like Target Healthcare , which owns health centres, so has the defector backing of Government. It yields over 5%, but it always trades on a premium, currently 15%
Another interesting one is Drum, it’s small, is on a premium but it’s come down a lot following the issuing of new shares, and it has a handsome 5%+ yield.
I am more concerned with growth than income but yield is always nice. Diversification is the main objective as my portfolio is totally equities and I feel I need to add something else and bonds are not viable right now.
Thanks for the suggestions. I have made investments in
Target Healthcare - Care homes
Empiric - Student lettings
Regional Reit - Varous commercial outside London and SE
Primary Health Properties - Health Centres
I am still looking for other suggestions. I don’t want anything in London or SE
Keep in mind that most property investment vehicles are geared so they tend to be much more volatile than bonds over the medium term. UK Commercial Property IT are a plain vanilla fund with low gearing and are thus lower risk.
Quite a few of those you have bought are trading at a premium to the underlying assets so you must expect medium term growth to be limited. If you reckon that the outlook for the UK economy as a whole is OK (and a bet on the regional markets tends to be predicated on that) then you might want to take a look at Hansteen who at least have good & experienced management. If on the other hand you are bearish on the UK then Secure Income REIT and Ground Rents Income Fund also trade at a premium but the underlying assets should hold up better in any general downturn.