Seeking secure and consistent cash flows in real estate long income
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, where relevant, from decision-making to management and reporting.
Why invest?
Real estate long income investments may be attractive to investors with a medium-term time horizon and a decreasing risk tolerance, who are 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 real estate long income
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.
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Real estate long income team
Meet our real estate long income investment 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
Director, Real Estate; Fund Manager
Isabel Gossling
Co-Fund Manager, E-RELI
Mark Wells
Fund Manager
Carl Williams
Assistant Fund Manager
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