Our approach to long income real estate
We acquire freeholds and long leaseholds on high-quality European real estate and structure investments to derive maximum value from the contracted income stream. By investing with conviction and discipline, we aim to deliver consistent outcomes and performance, and look to partner with clients to meet their investment goals.
Drawing on our wide resources, we use on-the-ground expertise to enhance operational value over the course of the assets’ life and aim to generate secure income from tenants with high credit quality. We also integrate environmental, social and governance factors in a non-binding way throughout the investment lifecycle, from decision-making to management and reporting.
Potential benefits of long income real estate
Bringing more clarity for investors seeking long-dated cash flows.
Long-dated liability matching
Through these long-term assets, investors can benefit from a closer match to their liability and duration needs.
Predictable cash flows
Quality tenants on long leases can deliver strong long-term cash flows.
Inflation hedge
Rents can be linked to the Retail Price Index or Consumer Price Index, or subject to fixed uplifts.
Diversification
The risk profile of long-lease property is different from traditional real estate allowing investors to access varied types of revenue.
Lower risk
Deriving most of the value from underlying leases means less exposure to changing capital values.
Illiquidity premia
Attractive yields relative to comparable asset classes.
Key risks of long income real estate
Investment risk
The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency and exchange rates. Investors may not get back the original amount invested.
Return profile
Long-lease assets are expected to be comparatively resilient at stress points, but may lag when traditional real estate markets are booming.
Real estate risk
Where funds are invested in real estate, investors may not be able to redeem any units in the fund when they want because real estate assets may not always be readily saleable. If this is the case, we may defer a request to switch or cash in shares or units.
Valuation risk
Certain assets held in the fund could, by nature, be hard to value or to sell at a desired time or at a price considered to be fair (especially in large quantities), and as a result their prices could be very volatile.
Real estate long income team
Renos Booth
Head of Real Estate Long Income
Luke Layfield
Head of Portfolio Management, Private Markets
Kris McPhail
Real Estate Fund Manager, Director
Neil Gardiner
Fund Manager
Isabel Gossling
Co-Fund Manager, E-RELI
Need more information?
For further information, please contact our investment sales team.
Explore our private markets range
Real Assets Study 2024
Demand remains strong, but the investment drivers are changing. At a time of macroeconomic uncertainty, real assets continue to play a significant role in the investment strategies of global institutions. The sixth edition of the Aviva Investors Real Assets Study is our biggest yet and seeks to answer some key questions.
Private markets views
-
Real Assets
Seizing the moment: The outlook for real estate debt
24 Sep. 2024
Gregor Bamert, Sima Kotecha and Nick Solomon discuss the recovery in real estate debt markets in 2024 and the opportunities emerging.
-
Real Assets
Get networking: Will the next decade be a golden age for UK infrastructure?
3 Sep. 2024
While there are obstacles to overcome, the coming years could see new opportunities for the UK government and the private sector to work together on infrastructure projects, says Darryl Murphy.
-
Real Assets
Illiquidity premia in private debt: Q2 2024
6 Aug. 2024
In our latest real assets deep dive, our research team explains how our data on illiquidity premia indicates the benefits of a multi-asset approach to private debt investing.
-
Real Assets
Relative value in real assets: A spectrum of opportunities
2 Aug. 2024
Our real assets research team drills into proprietary data to compare risk and return across sectors.
-
Pensions
A new chapter: Time to prepare for the next phase of the real estate cycle
17 Jul. 2024
David Hedalen and Jonathan Bayfield from our real assets research team highlight data that shows real estate markets in the UK and Europe may be on the brink of an important shift.
-
Responsible Investing
The future of green premia in real estate, part two: Searching for value and resilience
8 Jul. 2024
Do energy-efficient buildings have more pricing power, and what could that mean for those investing in the built environment? We bring together the views of leading capital markets researchers, a valuer and an asset manager for the second part of our deep dive into green premia, analysing the investment implications.
-
Responsible Investing
The future of green premia in real estate, part one: The view from the ground
27 Jun. 2024
Do greener buildings have more pricing power, and if so, how much? We bring together the views of leading capital markets researchers, a valuer and an asset manager for a two-part deep dive on the latest market dynamics.
-
Real Assets
Cyclical, structural, vintage: The outlook for real estate equity
10 May 2024
High inflation and rising rates hit activity in real estate markets over the past year. But cautious optimism is now returning to the investment landscape in the UK and Europe, say Imogen Ebbs and George Fraser-Harding.
-
Real Assets
Resilience and recovery: The outlook for real estate long income
21 Mar. 2024
Renos Booth, Isabel Gossling and Kris McPhail from our real estate long income team consider the outlook for long-lease assets after a challenging period for investors.
-
Real Assets
Rents, rates and the refinancing gap: The outlook for real estate debt
19 Mar. 2024
After a challenging 12 months for real estate debt investors, Gregor Bamert discusses what lies ahead for the market in 2024.
-
Real Assets
Illiquidity premia in private debt: Q4 2023
12 Mar. 2024
In our latest real assets deep dive, our research team crunches the data to see how evolving macro conditions are reflected in private debt returns.
-
Real Assets
Des res: Opportunities in rental housing for institutional investors
25 Jan. 2024
Jonathan Bayfield examines the fundamentals of this asset class, as well as the opportunities and risks for real-estate investors.
-
Responsible Investing
Common ground: Earning a social licence to operate in real asset investing
18 Jan. 2024
Successful real asset investing requires acceptance of asset managers’ practices and procedures from a variety of stakeholders. We explore what this means for managers, their clients and investment outcomes.
-
Pensions
Plus ça change…The outlook for infrastructure debt in 2024
11 Jan. 2024
Infrastructure demonstrated characteristic resilience in 2023 in the face of significant macroeconomic headwinds. Darryl Murphy from our infrastructure team explains why he expects current themes to persist in 2024.
-
Real Assets
Tech, trees and tailwinds: The outlook for climate transition real assets
9 Jan. 2024
In this Q&A, James Tarry and Luke Layfield explore the themes shaping the landscape for real asset investors with a climate transition focus.
-
Responsible Investing
Changing course: Creating a stable investment framework for offshore wind
30 Nov. 2023
Better market mechanisms and grid connection arrangements are essential to restore a stable investment environment in the offshore wind sector, as Nick Molho explains.