Questor: Private equity is snapping up cheap property funds – this one is no exception

Story by Russ Mould

City of London

Commercial property is still an area of which many investors remain wary, given the relentless onslaught posed by online rivals to brick-and-mortar retailers and the impact of hybrid working upon demand for office space.

But the result is that some real estate investment trusts, Reits, trade at big discounts to net asset value.

British Land (which Questor tipped in 2018) is one example. Its last reported NAV was 562p per share, and while the danger is the discount closes because the share price goes down, rather than asset values go up, the property giant may yet pay its way in the portfolio.

Questor: Private equity is snapping up cheap property funds – this one is no exception

Lowly Reit valuations are attracting attention. Private equity giant Starwood is bidding for Balanced Commercial Property Trust while Segro is in the process of buying Tritax EuroBox and New River Reit is bidding for Capital & Regional.

Questor says: Hold

Ticker: BLND

Share price at close: 423p