‘Interest rates rises not a threat’: Schroder

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A rise in interest rates will not spell disaster for investors in the real estate sector, managers at Schroder Global Real Estates have claimed.

Managers Tom Walker and Hugo Machin predicted that the sector would continue to offer advisers and their investing clients both regular income and the potential for capital growth.

In a statement, the managers argued that a rise in rates would signify to real estate investors that economic growth was strong, thus triggering stronger rents for real estate assets.

This led them to conclude that any increase in interest rates should not reduce the attraction of assets to investors, as long as rental growth were sustained.