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Fifty per cent of direct property managers blame the government guarantee for a direct impact to their business and, as a consequence, will change the way they market themselves, according to an Australian Direct Property Investment Association (ADPIA) survey.
The survey of 100 direct commercial property investment managers showed that the guarantee was directly impacting their business either through increased redemptions or decreased inflows.
Fifty per cent of managers said they would change the way they market themselves to retail investors in the next 12 months.
The industry needs to reassure investors of the benefits of direct property if it is to regain its place in investors’ portfolios, ADPIA president Linden Toll said.
“In an effort to win over retail investors, a relatively simple asset class became complex in some instances, and introduced unrealistic levels of liquidity.
“A return to the fundamentals of yield and some capital appreciation — without liquidity — is what investors will now demand,” Toll said.
Meanwhile, he said asset classes needed to lobby the Government to review its “hasty” decision.
“There is no doubt that fund managers do not need any additional impairment to their businesses,” Toll said.
