Despite a fall in confidence across the UK commercial property
sector as a result of the weaker economic backdrop and the
continued Eurozone crisis, the country's major business investors
remain committed to funding the sector by sourcing opportunities
that add long term value, according to a new survey.

The latest Commercial Property Confidence Monitor produced by
Lloyds Bank Wholesale Banking and Markets, in association with the
Investment Property Forum, found that major businesses and medium
to large London-based firms have the greatest appetite for fresh
investment in the sector, with major businesses increasing
commitment in line with August 2011 expectations.

70 per cent of respondents to the monitor revealed they would be
looking to increase their commitment in the market, with just 10
per cent looking to divest.

Meanwhile, London-based medium to large companies were looking
to take advantage of attractive valuations and opportunities
post-Olympics with four per cent looking to invest.

Lynda Shillaw, Lloyds Bank Wholesale Banking and Markets'
managing director of corporate real estate, said: "Businesses
within the commercial real estate space will be deploying their
capital selectively as they manage their portfolios during a period
of very little growth within the economy.

"Despite the pessimism there is a clear appetite for investment
into the sector driven by major businesses and London based
companies.

"The appetite is most likely fuelled by investors' views of long
term growth when buying at today's prices. In particular we have
seen larger property companies divesting of assets over the past
couple of years and reinvesting into both development schemes and
assets with enhancement opportunities, ensuring a healthy pipeline
and driving returns.

"We expect this to continue over the coming quarters."

Although the survey's composite index, which averages the net
balance scores on prospects for the sector in the next three to six
months, showed optimism had declined for all groups with the
exception of small firms, many firms expect to see a net increase
in the performance of their portfolios in the next six months.

Medium to large firms in London expect
the sharpest increase in improvement with almost half (46 per cent)
confident of an upturn in fortunes as opposed to the 31 per cent
that expected improved values in the previous survey.

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