Real Estate is traditionally cast as an income producing asset which can provide diversity to client portfolios. At Aviva Investors we certainly believe this to be true. But we believe real estate can also be used to deliver outcome oriented solutions to meet specific client needs.
Our years of real estate investment experience have allowed us to develop a simple investment philosophy. We believe that real estate markets are inherently inefficient, allowing value opportunities to be identified and captured at all points through the economic cycle, and across and between the various forms of exposure to the asset class. By understanding both our clients needs and the global real estate market, we are able to exploit this inefficiency to deliver expertly constructed and client focussed solutions across the risk spectrum to meet a wide diversity of needs.
We have a long history of constructing core/core+ portfolios, both as segregated accounts and pooled vehicles. These provide broad exposure to real estate markets - single country, regional or global – and provide clients access to the income and capital appreciation available from real estate. These portfolios will look to provide diversification by geography, sector and tenant and will target returns at the lower end of the risk spectrum.
Value Add/Opportunistic Solutions
The diverse, global and cyclical nature of the real estate market means we are able to identify opportunities and construct portfolios that can target returns at the higher end of the risk spectrum. Examples would be cyclical opportunities such as recovery strategies, thematic opportunities such as emerging markets or specific sectors, or individual opportunities provided through co-investments or joint ventures. These portfolios can be used to potentially add enhanced returns for clients with existing well diversified exposure.
Targeted Return Solutions
The diverse nature of the real estate market and the means of entry to it provide opportunities to construct portfolios which seek to deliver specific investment outcomes. For example, portfolios investing into long lease properties, ground rents or real estate debt can all look to provide the security of income and capital return that pension schemes seek to match their funding liabilities.