How we invest
- Global property manager and one of Europe’s biggest
- We add value through active management, top-class research and a local presence
- Our rigorous process is applied across regions and sectors
- Offering a range of direct and multi-manager property strategies to suit a range of investment styles, target returns and risk profiles
- Cater to the risk-profile that works for you – core or value-add.
- The ability to invest in a direct property vehicle or use a separate account mandate to customise your investment.
- Providing a range of strategies across UK, Nordic, Continental European or global.
- We can focus on core property sectors or more specialist investments like shopping centres, business parks or residential investments.
- Take an active approach to selecting properties, negotiating terms as well as asset management.
- Local experience – we have direct property teams in a number of cities across Europe.
Our investment process has three phases; allocation, selection and risk management.
We set an investment plan that provides a risk budget aligned with our investors’ and funds’ tolerance for risk and our view on the absolute value available in the market from various investment decisions.
We select risks on the basis of quality first, then price and are focussed on identifying durable income streams with the potential for growth. We price the income stream using a long-term view of risk, not short term momentum asking what an asset is worth, not what will the market pay.
We manage the bundle of risks within the portfolio on a day-to-day basis to maximise the return given those risks, or to change those risks to exploit market circumstances. A performance and attribution review is carried out as part of the annual investment plan. Performance is the market’s compensation for the risks that have been taken. We learn from the decisions we have taken through the analysis of subsequent performance.
We believe that our expertise, rigorous investment process and customer focus give us an edge in the marketplace.
- Applied research – not content to simply produce great in-house reports, we truly integrate our research at every stage of our investment process.
- Established market presence – because we have a strong reputation, we can attract the high level of deal flow our customers require.
- Focus on client needs – we always aim for true partnership with our clients, putting your investment goals first and ensuring there are never any hidden fees.
- Local presence – having a large team means we can operate offices in all of our target investment markets, as well as the majority of our customers’ home markets.
Property provides the potential for a range of benefits from income, growth, value add through active management and development, with a real asset underpin.
However, it requires large investment amounts and resource-intensive management to access directly; trying to invest directly on a global basis can also introduce legal and tax complexity.
As a result, many investors prefer to invest via funds and funds of funds, to best capture the breadth of opportunities available.
A multi-manager approach, in particular, can provide investors with access to high quality property funds and managers, offering exposure to any or all of debt and equity, prime and secondary locations, domestic, regional and global investments, and operating assets or developments.
Underpinned by three pillars:
- Running a quality investment process that is simple, robust and focused on risk management and transparency
- Providing quality investment solutions for our clients, including a range of commingled funds
- Seeking quality, best-in-class managers to drive long-term returns
Responsible property investing
We recognise that our activities have both direct and indirect impacts on the environment and the communities in which we operate, and so believe that we have a responsibility to identify and manage these impacts as effectively as possible, whilst continuing to further drive the performance of the investment.
Acting on our principles
Our approach to responsible property investment is underpinned by the following commitments:
- Industry leadership
- Engage with the property industry and with national and local government to monitor and influence market shifts and government policy.
- Strategic risk & resource management
- Manage environmental and sustainability risks and legal requirements at key stages of both investment and asset management processes as well as developing tools to set long term resource reduction and management targets.
- Governance & compliance
- Ensure effective governance and responding to and complying with regulatory requirements in every country in which we operate.
- Working in partnership
- Promote sustainability in property investment with internal and external stakeholders.
We have a Head of Responsible Property Investment and full-time RPI analyst who coordinate our efforts within the property group and work towards embedding our principles across our investment management processes, and our supply chain. They work with sustainability co-ordinators globally to improve the environmental performance of the assets we manage and embed our principles into our day to day activities. Some of the steps we take include; cutting waste through increased recycling, saving energy through effective operational management, reducing carbon by installing solar panels or combined heat and power (CHP), developing green travel plans, engaging with the wider community.
Towards a more sustainable future
Making changes to individual buildings is a good start, but we are also involved in working towards greater systematic change. We are members of a number of Green Building Councils, the UK Better Building Partnership, the Global Real Estate Sustainability Benchmark (GRESB) and the Institutional Investors Group on Climate Change (IIGCC) to ensure we are following best practice, and actively collaborating and leading the industry.