UK property companies could be the next targets for sovereign wealth funds as they become more adventurous in their quest for strategic investments in stable markets beyond the financial services sector, according to a Credit Suisse fund manager.

“Interest in real estate could return as yields become more attractive, and files will be reopened on substantial UK property companies with open share registers. The temptation to diversify into a politically stable economy in a less correlated asset at what could be good longterm value may prove hard to resist," said Phil True, head of UK institutional equities for asset management at Credit Suisse.