England – 03.07.2013 – Investors Throughout the UK are seeking out Real Estate Investment Trusts (REIT’s) to Improve their Investment Portfolios
When searching for new opportunities, would be investors often look towards the safest and most secure option. Although the changing fortunes of real-estate have been both dramatic and well documented recently, a Real Estate Investment Trust REIT is among a growing number of alternative investment opportunities.
Defined as “A security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. REITs receive special tax considerations and typically offer investors high yields, as well as a highly liquid method of investing in real estate”. (Definition from Google Dictionary)
They typically come in one of three forms; Equity, Mortgage and Hybrid. Equity REIT’s are those with invest in the whole of properties and gather revenue from the rent of that property. Mortgage REIT’s loan money for mortgages and are then paid back by the interest on those payments. Hybrid REIT’s are those which combine both the aforementioned REIT’s.
Because of the changing fortunes of the traditional stock market, a Retail Investment Trust REIT is often seen as a favourable option, especially for the person who wishes to invest in a real world entity which they can physically see and assess. Although the term property is used, it is often commercial properties such as shopping centres, hotels or office buildings which fall into the category.
Investment Opportunities
Once would be investors have established the facts, benefits and potential risks associated with a Real Estate Investment Trust REIT, they often find themselves in a position where they seek out an investment opportunity or a partner in doing do.
McKay Securities PLC is one such company. Established in 1946, McKay is a commercial property investment company which has been granted REIT status. They operate throughout the South East of England and Central London to offer investors a portfolio of investment properties.
When discussing the benefit they can bring to investors, a company representative noted “our strategy is to invest in well located, quality commercial real estate assets in established and proven markets of South East England and central London with income and capital growth potential over the longer term, realisable through active portfolio management, refurbishment and development.”
A full portfolio together with further details on the many investments can be seen at http://www.mckaysecurities.plc.uk/