Why you should follow the banks into German offices

With the UK commercial property market looking pretty toppy, the smart money is heading overseas for better returns. The favoured destination? Germany. We pick two of the best ways to get involved.

With its £1.1bn purchase of HSBC's headquarters in Canary Wharf last month, Spanish company Metrovesca might just have called the top of the UK commercial property market. The building's yield (the amount of rent paid compared with the purchase price) will be just 3.8%, well below the current UK base rate. It's not the only sign. Land Securities CEO Francis Salway last week said that some of the group's properties had fallen in value compared with 2006. "This is a big deal. We have had four years when everything was going up." So it's no surprise that "the smart money is now seeking better returns overseas", says David Budworth in The Sunday Times.

German commercial property: where the banks are heading

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