Our approach

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 our 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 (ESG) factors throughout the investment lifecycle, from decision-making to management and reporting.

Benefits

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

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.

Explore all funds

Access key fund documentation and performance reports.

View Fund Centre

Need more information?

For further information, please contact our investment sales team.

Contact us

Urban regeneration: contractual cashflows from redeveloping cities

27 Jan 2020 15:30 GMT 60 minutes

Watch our on-demand webinar where Aviva Investors Fund Manager, Luke Layfield, discusses how investors can work with the public sector to finance the re-generation of town centres.

webcast urban regeneration

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