Sometimes its good to know you are ahead of the crowd. This week we published our supplement – The Specialist – on property and real assets. One theme running through the edition was the growth of secondary property among UK schemes.
Much like residential property in London, commercial property in the capital has become expensive for some schemes, as international investors, such as the Middle Eastern sovereign wealth funds, bid for trophy assets. Who wouldn't want to say they own the Shard?
This has driven many schemes to consider some unloved parts of the market – whether that be location-wise or buildings that could do with some much-needed TLC.
This also happened to be a theme running through today's NAPF local government conference, with the association releasing an Investment Insight report today on the topic.
The report states: "Since the financial crisis, a flight to safe-haven assets by domestic and international investors has led to substantial investment in UK top-end prime property, mostly in London. This latest Investment Insight looks at the relatively neglected secondary property market. We consider valuations, the asset characteristics and what trustees should consider before investing in this asset class."
Much like residential property in London, commercial property in the capital has become expensive for some schemes, as international investors, such as the Middle Eastern sovereign wealth funds, bid for trophy assets. Who wouldn't want to say they own the Shard?
This has driven many schemes to consider some unloved parts of the market – whether that be location-wise or buildings that could do with some much-needed TLC.
#NAPF report outlines the case for secondary property http://t.co/p9i4jzcDOH Launched at the Local Authority conference today
— NAPF (@NAPFnews) May 20, 2014This also happened to be a theme running through today's NAPF local government conference, with the association releasing an Investment Insight report today on the topic.
The report states: "Since the financial crisis, a flight to safe-haven assets by domestic and international investors has led to substantial investment in UK top-end prime property, mostly in London. This latest Investment Insight looks at the relatively neglected secondary property market. We consider valuations, the asset characteristics and what trustees should consider before investing in this asset class."
At #napf Kames suggests property offers good value for money; 'unloved' property outside London even better and there's a gap in the mkt
— Will Pomroy (@WillPomroy) May 20, 2014Kent County Council Pension Fund featured on a panel discussion at the conference. A tweet from the NAPF's Will Pomroy points to why they invest in the asset class:
#napf Kent CC investing over £300m in property - the members love property
— Will Pomroy (@WillPomroy) May 20, 2014You can download The Specialist in the Apple App Store or click here for the PDF.
