The UK commercial property market is in the latter stages of its cycle, meaning it could be time to sell, according to the bosses of the £500m Schroder Real Estate Investment Trust.
In the trust's half year report, covering the six months to September 30, chairman Lorraine Baldry said: "The UK real estate market has continued to deliver attractive levels of income and total returns despite growing political and economic risk.
"Looking forward, these risks combined with the late stage in the market cycle means we are more cautious about the outlook and may look to realise some of the capital gains across the portfolio."
The trust has a current yield of 4.2 per cent.
Duncan Owen, the trust's investment manager, said he expected UK regional property to perform better than London property.
He said the supply of property in regional cities was constrained as many commercial sites were turned into residences, but in the City of London this was not happening and he expected there soon to be an oversupply of London commercial property, so his focus was away from that market.
He said the trust had also refinanced the debt it holds to pay a lower interest rate. Such an opportunity may not exist if UK interest rates rose within a year.
Trevor Greetham, multi asset investor at Royal London Asset Management said he expected commercial property to be one of the assets that performs well if the UK leaves the European Union with a deal.
