When big spenders flock into giant shopping centres they think of designer labels and the hunt for bargains.

But perhaps they should survey the bricks and mortar before they flash the plastic.

Shopping centres, retail warehouses, offices and other high-class commercial property might rescue private investors facing grim prospects in other sectors of the economy.

Rock-bottom interest rates are hitting savers, private sector pensions are losing money and there is little hope of improvement in stock markets.

Buy-to-let residential properties have had a good run and could become an alternative pension for some.

But, even here, new investors are edgy. In some areas, prices feel as though they have peaked and rents are starting to weaken.

Commercial property is sailing serenely through the storm despite long-stagnant share prices of top property companies. And much of the quality property is on upward-only, five-year rent reviews.

Frank Cochran, of FSC investment Services, said investors readily sank £100,000 a time into the Eagle Star With Profits Plus Investment Bond, with 75 per cent of the money going into the property fund.

The fund returned more than ten per cent gross (about 8.8 per cent net), although investors who took just five per cent per year avoided any income tax liability.

Mr Cochran said: "Money is not locked-in at all, although investors who want the no exit penalty option lose 5.5 per cent of the initial sum invested.

"It is a five-star Micropal- rated fund and Standard and Poor's volatility rating over three years is very low. This is a low-risk fund."

Minimum investment in the Eagle Star bond was £5,000. There were clear advantages over buy-to-let.

"It is less likely to incur income tax, offers little downside risk and avoids hassle with tenants. Property funds are great value for money, because you get such a good income."

Mark Dampier, of Hargreaves Lansdown, said: "Commercial property is an ideal investment for anyone looking for steady returns of about seven per cent per year, particularly for those nervous of equity markets."

Morley Investment Management, part of Norwich Union, expects returns on property portfolios to come in around eight per cent this year.

If economic recovery arrives, returns could rise in 2003 and 2004 as businesses take on staff and rental growth improves.

Many private investors who invest in commercial property put money in unit trusts or investment trusts, which buy shares in the major firms.

Even though two giants in the sector, British Land and Land Securities, jumped ahead this week, these shares generally move slowly.

The racier property investment is usually in funds which buy and sell properties, which explains the interest in the Scottish Widows Investment Partnership's (SWIP) launch of the UK Balanced Property Trust next month.

As it is registered in Guernsey, the fund can be put into an individual savings account (ISA) or a self-invested personal pension.

SWIP is one of the UK's largest direct property investors and its 30-strong property team manages more than £4.4 billion of assets.

To establish the trust, it bought a ready-made portfolio of property for £250 million and will recoup £150 million by selling shares to private and institutional investors. It will borrow the remainder.

The £1-per-share offer opened to investors yesterday on a first-come, first-served basis closes when the required sum is paid. ISA investors must invest £7,000, but others can buy the shares like any other new issue.

The fund includes 60 properties occupied by 260 tenants. Government and local authorities account for eight per cent, local traders 25 per cent, multiples/supermarkets 25 per cent and public companies 42 per cent.

Tenants only avoid rent by going bust, so it would take a huge recession to sink that lot.

The fund pays an initial dividend of 6.5 per cent to ISA investors and promises four payments a year.

SWIP spokesman Bob Lawson said: "Response suggests people are not bothered by the fund being property-backed.

"They simply like the prospect of high income, which can be tucked into an ISA for added tax efficiency.

"Because the fund is based in Guernsey, we avoid the usual regulations controlling property investment trusts and achieve a better yield. First dividend payment is in July."

Financial advisers say the launch is interesting but are divided in their reactions.

Patrick Connolly, of Chart-well, is a specialist on property funds and his company provides a free guide to property unit trusts and investment bonds.

He said: "We believe this new product will sell well. It is investing directly into the properties and the ISA aspect is unique. Rent income should be constant but it is not guaranteed."

Mr Cochran said there might be a capital gains tax liability when an offshore fund was brought back into Britain and was concerned how liquid property funds were if and when they started selling properties.

Whatever its prospects, the trust from Scottish Widows arrives at the right time.

As storm clouds hover, the idea of locking ten per cent of a personal portfolio into bricks and mortar is strangely comforting.