Tuesday, 5 June 2012

PFO2, putting money in an environmental Reit

By Park Moon Yung


Monetary world has an awful environmental reputation...

Profit is the golden rule, and whether or not it is bad for environment isn't actually a preoccupation.

That attitude leads to a tragedy for humanity: if you'd like to find a pollution free environment you really need to go a long way away from "civilization".

Everywhere people are leaving an ecological disaster blueprint.

And it's time to find new techniques of handling profit and environment.

Perial, which is a French Asset Management firm, has made a decision to create a new Scpi, which name is PFO2.

The aim is to invest in buildings that are ecologically friendly and energy sensible.

There's this French law about energy savings buildings, which demands that new buildings should have a low energy footprint.

So Perial reit is investing in these kind of buildings, and so far it has been a success.In 2012 net yield is 5,42%, which is great, especially if you compare to bonds or stocks.

Lesser risk for a greater yield it is a perfect combo.

And speculators are fond of this Reit as it gives them a good security, a good yield and an environmental awareness.

But should you invest in it in 2012?

Well new acquisitions have been made on a 6-7% ground, which is great.

Perial has proved that they were a good asset managing firm.

Still there could be a problem: PFO2 is a big success and many backers are purchasing it.If at some particular point an issue occurs for whatever reason, many financiers will also need to sell their stock.

When you have a tiny reit it is not such a big concern, but if you happen to have got a huge one and all financiers want to sell at once it will be impossible to sell quickly , and stockholders might have to wait for years before getting back their cash.

So you can invest in Perial's reit but diversify your investments, don't rely to much on one.




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