The [i3] Global Property Forum 2022 was held on 16 November at the RACV City Club in Melbourne. Investment specialists from instutional investors discussed the challenges and opportunities in European property, the rising interest rate environment and the role of alternatives and REITs.
We also featured investor case studies from the Future Fund, New Zealand Super, VFMC and Aware Super.
Regime change
Regime change is a development that can’t be ignored. While the impending end of the pandemic should usher in more optimism e.g. relative attractive valuations of retail assets or more certainty in office assets, investors now have to grapple with a secular regime change impacting the investment environment.
Tightening monetary policies, increasing geopolitical tensions, deglobalisation, inflation and climate change are some of the structural forces expected to impact the investment environment in the long term.
In addition, superannuation funds need to remain cognizant of the unintended consequences imposed by the APRA performance test.
Building Resilience in Property Portfolios
In this annual property forum for asset owners focusing on real estate investing, we also discussed how investors can build robust portfolios, with consideration to:
- Local vs offshore exposures: US vs Europe
- Beyond Core: Core+ and alternatives; Sectors vs themes
- Access Channels: REITs vs unlisted; Direct vs co-investments vs funds
- Capital structure: Real estate debt vs equity
- ESG integration and sustainable investment opportunities
