The pandemic has accelerated a number of trends that were already in motion. These may include e-commerce adoption, deglobalisation, disruption of supply chains and the rising importance of technology. Complementing these trends are structural shifts such as ageing population and increasing demand for quality healthcare as well as sustainability and ESG considerations.
These trends have given rise to a plethora of real estate alternatives beyond the core office, retail and industrial assets. These may range from specialist healthcare and life science facilities, to data centres and new forms of digital infrastructure, to new living quarters such as student accommodation, built-to-rent and disability accommodation.
While investments in such real estate alternatives were previously motivated by the search for yield in a low return environment, it is becoming imperative that these assets provide the resilience to the portfolio in the midst of a changing environment backed by strong megatrends and demand.
However, the supply/demand dynamics of such niche assets may impact the availability of such assets, liquidity profile and pricing. How do investors best access these non-traditional assets?
This material is intended for information purposes only and does not constitute investment advice or a recommendation. The information and opinions contained in the material have been compiled or arrived at based upon information obtained from sources believed to be reliable, but we do not guarantee its accuracy, completeness or fairness. Opinions expressed reflect prevailing market conditions and are subject to change. Neither this material, nor any of its contents, may be used for any purpose without the consent and knowledge of AEW.