UK fundraising activity for real estate investment trusts (REITs) based in the country reached a four-year high in 2021’s third quarter. This welcome news reflects a hearty return for transactional activity and the increased appetite of investors for yields translated into a slew of share placings of considerable size.
Figures compiled and revealed by the Association of Investment Companies (AIC) discovered that UK REITs efficiently raised £683 million in Q3, a rapid rebound from the £35m worth of shares that were sold in Q2, and the highest recorded figure since the third quarter of 2017.
The recent surge in placing activity has arrived amid growing interest from investors in asset classes offering income growth that is inflation protected, continuing investor aversion to poor bond returns, and more wide-scale post-pandemic consensus between sellers and buyers on valuations in many parts of the property market.
However, the newly revealed upswing also indicates buoyant activity through UK-listed investment firms currently tracked by the AIC. In a statement, the Chief Executive for the AIC, Richard Stone, commented:
“There is clearly strong investor demand, and the closed-ended structure of investment companies continues to provide investors with a proven means of gaining exposure to less liquid assets.”
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