Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Investing

INVESTEC WEALTH & INVESTMENT REDEPLOYS REAL ESTATE EXPOSURE TO NON-TRADITIONAL SECTORS
INVESTEC WEALTH & INVESTMENT REDEPLOYS REAL ESTATE EXPOSURE TO NON-TRADITIONAL SECTORS

Published : , on

  • 20% of its real estate portfolio now in assets including care homes, student accommodation and GP surgeries
  • IW&I looking at further non-standard property plays 

Investec Wealth & Investment has over the past 18 months redeployed around 20% of its real estate exposure – equivalent to £200 million – from conventional property investments to a range of non-traditional property vehicles owning the freeholds of GP surgeries, student accommodation, care homes and theme parks.

According to IW&I, these property sub-sectors have become increasingly attractive for income-seeking retail investors because they are exposed to less economically sensitive areas of real estate and invest in stable assets with good cash flow profiles and the prospect of capital growth as rents increase over time.

GP surgeries – IW&I has invested for many years in Assura, Primary Health Properties and Medicx and is now one of the largest external shareholders in these REITs.  These vehicles invest in UK primary health property leased principally to GPs, NHS organisations and other healthcare users.  These vehicles offer attractive dividends of [around 5%] and government-backed cash flow.

Student accommodation – IW&I has invested more recently in two quoted student accommodation funds, Empiric and GCP.  Given the supply / demand imbalance driven by increasing numbers of students, particularly those from overseas who are often prepared to pay higher rent, this sector is well positioned for future growth, believes IW&I.

Premium care homes – IW&I believes the premium care home sector offers considerable potential and has invested in Target Healthcare plc, which owns a growing portfolio of high quality purpose-built UK care homes.  This fund, which owns over 30 freehold assets with long leases, offers a dividend yield of over 5%.

Hospitals and theme parks – The firm has also invested in Secure Income REIT, which owns a freehold portfolio of 26 health and leisure real estate assets producing a net initial yield of 5.3%.  Its portfolio comprises 19 private hospitals and six leisure assets including three visitor attractions such as Thorpe Park and Warwick Castle.

Chris Hills, Chief Investment Officer at Investec Wealth & Investment said: “Property as an asset class is primarily a source of rental income and, post Brexit, projections of a cut to UK base rates will offer support.  However, fears of a slowdown in the UK economy have meant that many traditional real estate investments have been hit by rising risk aversion.  Many investors are looking for a healthy level of income without taking on too much economic risk in terms of voids or tenant defaults, and these non-standard property plays are ideally suited to this objective.

“These subsectors benefit from long and stable leases, strong cash flow provision and favourable demographics that are likely to result in increased levels of demand over the long term.

“We have been very pleased with the returns achieved by our exposure to these non-traditional property sectors.”

Uma Rajagopal has been managing the posting of content for multiple platforms since 2021, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune. Her role ensures that content is published accurately and efficiently across these diverse publications.

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post