Christmas Stock picks: Vp 22/12/2011
Benefits of past investment will benefit Vp, suggests Les Copeland
Property adviser Savills has warned that 2010 may see only a flat market, after the rally in prices experienced during the second half of last year. Chief executive Jeremy Helsby has suggested that ‘total inertia’ could grip the market ahead of the general election, while other players continue to express concern about the overhang of property loans on banks’ balance sheets.
Robert Adair, chairman of Glasgow-based property group Terrace Hill, by contrast, is taking an altogether more robust view of the market. Although the AIM-quoted company saw net assets slide 23.5 per cent in the year to October, the second six months brought an upturn and Adair says the company is ‘actively considering’ launching a residential property fund.
He points out that the company’s residential portfolio continues to outperform industry benchmarks. In these circumstances, Adair argues that a residential fund would have ‘the potential to provide further scope to create value’.
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