Hillier Parker recorded just under £1bn of forward funding and joint ventures in the UK property market during the first quarter of 1996.
The firm’s Robert Farnes says that this, alllied to the positive net investment figures for both pension funds and insurance companies “confirm our view of a much more positive investment climate.”
The latest institutional investment bulletin from the Office for National Statistics reveals that although institutional property investment turnover (puchases plus sales) continued on a downward trend, overall net investment in property rose from £32m to £285m in the first quarter of 1996.
Pension funds invested a net £ against a net disinvestment of £88m in the previous quarter, says Hillier Parker, and insurance companies invested £44m, compared £ 155m in the previous quarter.
According to Alan Patterson, HP head of research: “The institutional market has been flat and more depressing than a lot of agents had hoped. There has, however, been an improved expectation in the market over last few weeks.” He adds there is a considerable amount of money that has been earmarked for new property investment, “but the property managers are still reluctant to commit themselves too early.”
EGi News 04/07/96
