Does anyone know what the current "market rate" retaun to an investor is or should be for a new retail property trust. I am looking at an investment which will incorporate several shopping centres in Brisbane but I now (ie in this market) have no idea what sort of yield i should be achieving. While the forecast yield appears attractive i am just not sure of where the current market sits.
Obviusly there is a lot of negativity in the market but to me the investment in property trust AT CURRENT PRICES seems pretty appealing. The passing yields for the centres average 8%. Yes I know you can get higher than this on second tier centres etc that require a heap of money spent on them and have high rents etc etc.
Anyone have a view on these issues - would appreciate it.
