Understanding asset classes deemed key to successful investment
MIPIM UK NEWS: Around 79% of investors are looking to increase their exposure to the alternative market by 2019, but a thorough understanding of the different asset classes is imperative to a successful investment.
Over the next three years, private equity and hedge funds are looking to allocate 29% of their funds to alternative investments.
The available range of investments is broader than ever, with healthcare and student housing coming in at the top of many investors’ shopping lists. However, in instances like these where the assets require specialist asset management or an operating platform, investors must be advised and be well informed before committing to investment decisions.
MIPIM UK NEWS: Around 79% of investors are looking to increase their exposure to the alternative market by 2019, but a thorough understanding of the different asset classes is imperative to a successful investment.
Over the next three years, private equity and hedge funds are looking to allocate 29% of their funds to alternative investments.
The available range of investments is broader than ever, with healthcare and student housing coming in at the top of many investors’ shopping lists. However, in instances like these where the assets require specialist asset management or an operating platform, investors must be advised and be well informed before committing to investment decisions.
Explaining the complexities of the healthcare market, Jonathan Murphy, interim chief executive officer, Assura, said: “The problem with GP surgeries is that it is a specialist area and you need to understand it and normal property criteria goes out the window and so you need a certain expertise. With GP surgeries as an asset class, this is not about getting the best price, it is about getting someone that understands the sector and is able to support the tenants’ property needs.”
However, when equipped with the right knowledge and support, alternative assets can prove stable, long-term investments, for which demand is only growing.
Charles Fletcher, associate, Knight Frank, said: “A lot of the alternative sectors are becoming more well known and understood, and so more institutional investors are more prepared to take a calculated risk into the sector. The returns are generally higher, and we have now seen that the institutions that have moved into that space have educated themselves well.”
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