The commercial property investment market may pause for the next four months, taking a long Summer holiday, as a result of the uncertainty caused by the outcome of last week’s General Election, according to a real estate asset management specialist.
Tim Matthews, Chief Executive of Birmingham-based Blue Marble Asset Management, fears that institutional investors will effectively down tools until September, pausing activity at the top and middle of the market.
“The property industry generally does not generally need much of an excuse to take a long Summer holiday,” says Mr Matthews. “It happened following the General Election result in 2015 and again following the Brexit referendum last year. Both results were largely unexpected, as was last week’s hung parliament.
“The result of the 2017 General Election was widely expected to deliver another Tory majority and until last Friday it was business as usual across the market, with the election seemingly having little effect on transactions.
“Although Theresa May seems set to continue in power, with largely the same policies, I believe the commercial property investment market will once again adopt a cautious wait and see policy for the next few months.
“This is not all bad news, however, as some property companies and private investors will undoubtedly continue to invest, and there may be more opportunities for property companies and their advisers, such as Blue Marble, to pick up some investments which would have previously have been snapped up by the institutions.
“Although I would love a long holiday in the sun, it will be business as usual at Blue Marble throughout the Summer.”
Based in Birmingham’s Colmore Business District, Blue Marble Asset Management is a real estate asset management specialist which presently has more than £70 million of property assets under management. It works for a select range of clients including investment businesses, high net worth individuals, trusts and family offices. Its business is based on taking a holistic and strategic view of each of its property investments.