But unlike his peers, Mr Coombs is less convinced that commercial property is cheap.
“There’s a 5.3 per cent yield on commercial property, which I don’t think is very good,” he says.
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“Outside of London it is more correlated to equities and the equity cycle – there may be a lag but there is definitely a link – and so you would normally expect a premium.
“It’s like saying equities are cheap compared to bonds – it’s a case of ‘yes, but’. Property is okay but it is not cheap.” The manager cites a “normal” risk premium of 4 percentage points over government bond yields as suggesting property should yield roughly 6.7 per cent.
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