Real Estate Investment Drives Growth in FTSE 100 – AAA

The London-based FTSE 100 recent results illustrated perfectly how real estate is once again proving to be a lucrative investment market, claimed Alternative Asset Analysis (AAA).

The alternative investment advocacy group said that property firms have seen extremely strong rises in their share prices, soaring by 6.8 per cent, with Land Securities leading the pack in terms of results. It reported pre-tax profits of £1.23 billion for the year to 31 March, which represented a 14.8 per cent rise on the previous year.

AAA’s analyst partner, Anthony Johnson, said, "Land Securities' success shows that investment in real estate in the UK and internationally is once more becoming a lucrative options for people looking to diversity their portfolios."

Land Securities is a real estate investment trust (REIT) that made most of its money this year from selling properties at a much higher price that it sold property for last year. Its sales totalled £687 million, which was a full 12 per cent increase on valuations in March 2010.

“Land Securities has performed very well this year largely because of its exposure to the market in London, which has seen property prices rise again over the period. The demand for commercial space within the English capital has driven this growth,” added Mr Johnson, who has a wealth of experience as both a fund manager and an alternative investment analyst.

Land Securities’ Chief Executive, Francis Salway, claims that the firm is planning schemes that would ensure it could take advantage of what is anticipated to be an under-supply of commercial space in London, which means it is likely to see profits continue to grow.

AAA claims that these results illustrate why real estate is a good option for people wanting to make alternative investments this year. It adds that there are also several other good bets for the year to come in terms of alternative asset classes that could generate strong returns in the year to come. Mr Johnson stated, “Forestry investment in emerging economies such as Indonesia and Brazil through providers like Greenwood Management and Emerald Knight are doing well.

“We would also encourage investors to consider impact investment as an option this year. There are a large number of inspiring and ethical schemes taking place in Africa and beyond that help generate returns for investors while providing opportunities for people and communities in developing countries,” he added.

Contact :
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-898-6317