Return on Equity

The graph below is designed to show the return on equity to a UK debt financed property investor, assuming a notional loan compared with the CBRE All Property Prime Yield. The notional loan assumes a 5 year swap rate plus a margin for prime commercial property secured on a loan calculated by reference to prime loan to value ratios, both as reported by De Montfort University. Surplus income is expressed as the percentage returned on the implied equity in the transaction.

Hold your cursor over the graph to view the rates in detail.