Direct property should not be forgotten

Reits will offer investors new investment opportunities but should be held in addition to direct property funds rather than instead of them, as some Reits may have a high equity exposure

With this year's Budget having set a timetable for the implementation of UK Reits in January 2007, should clients be re-assessing their exposure to property? Direct property investment has seen significant growth over the past few years buoyed by increasing levels of return, and the importance of diversification is becoming more widely understood. Indirect property investment - investing in the shares of quoted property companies - used to be limited to a handful of collective funds, however there is now a much greater number of funds offering indirect investment. The launch of Reits will...