Property, including commercial property, is an alternative investment asset class. Investment returns are generated from a rental payments and/or an increase in the value of the property.
Investments in property tend to be illiquid and therefore need to be held longer than traditional asset classes like shares in listed companies, government bonds and cash. Property valuations are not tied to stock market cycles - but are cyclical themselves, independently.
Within the commercial property asset class, there are different types of investment due to different types of buildings with different purposes and different tenants, each with differing characteristics which affect the target return and hold period.
Commercial property investments include: mixed-use (residential and commercial use), student accommodation, retail, healthcare or leisure facilities, industrial and manufacturing, office blocks and hotels.
At Connection Capital we provide uk private investors with access to commercial property opportunities targeting institutional style returns. We target annual net returns of 10-15%, which often includes an annual fixed income payment of around 5%.