| The valuation gap between trophy property assets, such as offices and shopping centres in major capitals, and less glamorous out-of-town secondary property is starting to narrow as institutional investors broaden their sights in search of better returns and less overheated prices.
Sovereign wealth funds are contributing to the shift. Last week Norway’s $720bn oil wealth fund, run by Norges Bank Investment Management, snapped up a £250m portfolio of UK suburban warehouses, used as retail distribution centres. “Sovereign wealth funds and pension funds are looking around for something other than prime retail and getting into industrial property assets such as warehouses, which look appealing,” says Philip Marsden, director of European capital markets at Jones Lang LaSalle. ..............................................Full Article: Source
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