The number of UK property businesses looking for bargains within
the nation's uncertain real estate market has increased according
to data from Lloyds Banking Group's quarterly 'Commercial Property
Confidence Monitor'.

The crisis in confidence within the Eurozone has seen the net
balance of major businesses intending to make property purchases in
the next six months rise from 52 in February to 57 in May, with one
survey respondent revealing "property is so cheap people are
starting to buy."

The net balance of fund managers keen to invest also increased
from 36 to 38 over the same February-May period.

Lynda Shillaw, managing director of corporate real estate at
Lloyds Banking Group believes there was pessimism about the
market's near-term prospects, with the focus shifting to long term
growth.

"Investors are nevertheless seeing the opportunity for longer
term value growth when buying at today's prices," she said.

Property values within Q1 and Q2 2012 fell by two per cent and
the recovery of the market still looks some way off according to a
report from Investment Property Databank earlier this month.

Although Fund managers within the property sector retain a
largely negative outlook regarding short term prospects it is the
long term potential that is enticing investors to part with their
cash.

Andrew Smith, chairman of the Investment Property Forum's
Research Steering Group, said: "Fund managers remain pessimistic
regarding shorter-term prospects in a property market faced with a
cocktail of difficulties.

"However, some see scope to take advantage of an arbitrage
opportunity afforded by depressed asset pricing in the current
market."

Within our own property portfolio at Pall Mall Estates we have a
number of attractive offers designed to give businesses a helping
hand when relocating, expanding or contracting. Whether it is reduced rents, short term let agreements or
fit out premises there is
something for all types of business requirements.

—