Independent Financial Life Planners Bishop's Stortford: Global investors increase real estate assets in portfolios

Sunday, 17 January 2016

Global investors increase real estate assets in portfolios

Enables IFAs in Bishop’s Stortford can see why, according to new research from Global Investor Outlook (GIO) for 2016, half of global investors plan to increase their real estate allocations within multi-asset portfolios moving more money into real estate next year.

The global property company says that combined with relatively low levels of debt compared with the previous market peaks, this flood of capital would further cement a long term climate of stability for global real estate returns. And the GIO for 2016 also found that despite a reduced appetite for risk, debt would play a greater role in the market next year. They found that 75% of UK based investors would use debt compared with 65% in 2013.

According to Richard Divall, head of cross border capital markets at Colliers International,
‘An ageing population is maintaining the pressure on institutional pension and insurance funds to achieve yields that match long term liabilities. With better regulated debt markets and new macro-prudential tools, we see core property assets, globally, being stripped away from the broader real estate market to become more aligned to bond like financial instrument,’
Madeleine McDougall, head of institutional clients at Lloyds Bank Commercial Real Estate and chairman of CREFC Europe, pointed out that there has been a fundamental reshaping of property debt over the last five years creating a more stable environment and a greater number of participants sharing risk. Peter Cosmetatos, chief executive officer of the Commercial Real Estate Finance Council Europe, said that after two years of a borrowers’ market, a new equilibrium has emerged since the summer, with margins stabilising or even ticking up.”

Source: Property Wire

Issued by: Enable Independent Financial Life Planners •  25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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