Long industrial leases spell doom for fund managers
Posted on July 7, 2022 in News
Larry Schlesinger writing for the The Australian Financial Review on 5 July 2022
Fund managers that purchased industrial property at the peak of the market, and with tenants locked in for years on fixed rental increases, are going to get “smashed” by rising inflation and falling values, predicts veteran real estate investor Warren Ebert. “Those that purchased property on 3.5 per cent yields won’t get any more yield compression, so there won’t be any capital growth.” Mr Ebert, founder of Brisbane-based fund manager Sentinel, told The Australian Financial Review.
