API announces

Aberdeen Property Investors has announced plans to make over £700m worth of acquisitions this year. API, which is in the process of being taken over by Arlington Securities, predicts returns of 7%-8% on its investments this year. It forecasts that although offices will be the weakest sector again in 2004, the decline in rents will slow and interest in the sector will increase in anticipation of a better year in 2005.

David Hunter, Chief Executive of API, said he believed investor demand would remain strong, and that the market could possibly exceed expectations.

“Following the stronger than expected performance of 2003, we predict that 2004 will be another good year and values will be sustained”, Hunter said. “We believe that property is now correctly priced and are continuing to recommend increased property weightings to clients. Responding to this, our clients have allocated fresh funds which we are looking to place into the property market as soon as possible.

“We have an appetite for deals across all sectors and geographic regions in the UK. While our primary focus is on industrial and retail, we are quite prepared to be opportunistic buyers in suitably priced Central London and South East offices.”

Source: Freeman News

Related News