Article Abstract:
United Kingdom unit trusts investing in the real estate industry suffered from fears of recession in late 1998 and early 1999, but consumer confidence has revived, and this has benefited real estate. Companies are seeking space and appear more prepared to expand. There are some factors that could constrain the industry such as low inflation which restricts rent rises, and new technology which means that companies are less tied to city centers. These concerns have led to Barclays shutting down a property fund.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
United Kingdom unit trusts are able to issue unlimited units in response to demand, while investment trusts function as limited companies. Investment trusts are usually cheaper to access, but tend to have more volatile returns. Investment trusts can also borrow and gear returns, which means that they tend to perform better than unit trusts in the long run. Investment trusts tend to offer better deals in terms of charges, and this applies to both types of trust when they are used in personal equity plans.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Real estate investment trusts may be set up in the UK. The proposed trust is a unit trust which is quoted on the stock market. The trust os geared to institutional investors but could have wider appeal. Investment in real estate by institutions in the UK tends to be carried out directly, but trusts will allow institutions to diversify their real estate portfolio. Pension funds have tax advantages in owning real estate directly and real estate funds could also benefit from tax advantages.
User Contributions:
Comment about this article or add new information about this topic: