Commercial property 'attractive to pension funds'

Research has revealed that commercial property is proving increasingly attractive to a number of investors, including pension funds.

The official figures from the Association of Real Estate Funds revealed that institutional property funds raised over £3.2 billion in the last quarter, the highest amount since records began in 1998.

According to the Financial Times, such figures reflect a change in sentiment in relation to commercial property.

John Cartwright, chief executive of the organisation, told the newspaper: "Last year was a volatile year, but it ended on a positive note with record new money coming in to the funds, as well as the final quarter showing extraordinary growth in returns."

He added that new money has come from "institutional investors who tend to have longer-term investment horizons".

According to recent figures from CB Richard Ellis, commercial property returns in the UK reached 1.5 per cent in January, as growth of 0.9 per cent was recorded over the month.