New currency exchange rules in South Africa are likely to lead to an increase in the number of investors from the country taking an interest in UK commercial property, it has been suggested.
According to property company Broll, the new exchange control allowance, which could see South African investors transfer up to R4 million per year, makes the asset class a more viable and accessible option.
Indeed, David Adams, an investment broker for the firm, noted that commercial property investment in the country has always been an interesting "diversification" for investors based in South Africa.
"It is an opportune time for South Africans to invest in UK direct commercial property
, particularly due to the relative weakness of sterling compared to the rand, as well as the enhanced access which has been unlocked by the new higher exchange control limits," Mr Adams explained.
The expert added that the recent fall in commercial property capital values, as a result of the economic downturn, meant that there is every opportunity for long-term growth within the market.
- Thursday 13 January 2011