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Commercial real estate equity lock?

  • Tim Allen
  • Aug 26, 2021
  • 1 min read

Across Australia we have seen some stunning results at income producing commercial property auctions over the last 2-3 months with reserves for income producing properties being smashed by up to 50-60%


The upside for owners is that we’re now seeing these increases in value flow through to bank valuation reports.


I’m currently working with a number of clients to lock up the recent equity gains to redeploy this cash equity towards a range of other uses and projects.


This is preferred by many over selling into the strength and crystallising capital gains.


Ultimately we don’t know how much yield compression the market can bear however I’m seeing now as a great opportunity to take advantage of both strong appetite and low interest rates from banks coupled with increased valuation across a number of commercial asset classes.




 
 
 

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Commercial Real Estate Finance Pty Ltd holds its own Australian Credit Licence (ACL) # 533373

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