Fund management

Quality remains king of property

Marcus Phayre-Mudge, head of property investment at Thames River Capital and fund manager of TR Property Investment Trust, says investors in office and retail space should stick to the world's top cities for another year or so because the quality end of the market offers the best prospects for rental growth. Rather than direct investment he would recommend vehicles that own listed securities. On an ungeared basis investors might expect returns of 8-10 per cent for good quality commercial real estate.