Historical evidence in the US has shown that alternative property types provide excellent diversification benefits to traditional real estate sectors such as offices, retail, residential and logistics.
Indeed, if the changes observed in the US market are any guide, we may well be on the cusp of big changes in real estate portfolio allocations in Europe. Investors wishing to deploy capital in Europe will have to take these evolutions into account and decide which, if any, of these “emerging” property types they would like to include into their target portfolio mix.
In partnership with PATRIZIA, this webinar focused on how investors can build a resilient real estate portfolio in a post-pandemic world.
Transcript (with timings)
3:03 – Long-term impact of COVID-19 on the property industry. Which property types are proving to be more resilient?
6:17 – What are the common trends across USA, Europe and Asia Pacific, and how is each region progressing?
7:32 – What niche property types have been growing over the last few years?
8:42 – How do the niche (alternative) property types fit with traditional property in portfolios today?
9:57 – What do the alternative property types bring to the table? How does their inclusion change returns?
12:05 – Is there a correlation between certain property types across all the sectors?
13:50 – What’s the best way to access the whole range of property types given some of the alternative property types are illiquid?
15:11 – In Europe, portfolios have changed the mix of property types over the last 20 years.
17:49 – What’s the market share of office property vs other property types since the onset of COVID?
18:41 – How do you work with OpCos and PropCos to the benefit of your portfolio?
21:52 – How do the drivers of change, ie. demographics or asset ownership, vary between the US and Europe?
24:32 – Differences within Europe
26:02 – After the GFC there was a spike in real estate investment in the USA. Is there going to be a similar situation in Europe?
28:25 – Are there any property types that could advance faster than others?
28:50 – What’s the difference between transactions and investments?
31:14 – The Australian market is very fee sensitive. Can that affect investments into alternative property types?
33:32 – Advantages of an OpCo or PropCo blended arrangement
35:26 – Some niche property types seem like infrastructure and not real estate
38:16 – What’s the future of office and other traditional sectors?
40:21 – What can alternatives do for your portfolio in terms of construction?
41:41 – Will the niche sectors become mainstream at some point in the future?
Presenter: Mahdi Mokrane, Head of Investment Strategy and Research, PATRIZIA
Host: Teik H. Tan, Executive Director, Investment Innovation Institute [i3]