What are the best opportunities to invest in?
Nick Preston, Manager of Tritax EuroBox, said: “The occupational market is increasingly favourable and we expect the trends of strong occupier demand, driven by e-commerce and the reinforcement of fragile supply chains, to continue in the long term. When considered alongside a limited new supply of logistics space, we expect consistent, sustained rental growth in prime logistics markets. We are confident of being able to extract further value from the existing portfolio through asset management and development activities, as well as other activities.
“We are well placed to continue delivering the company’s strategy through growth in new investments which we are able to continue to access.”
Simon Lee, Co-Manager of LXI REIT, said: “We look forward to deploying the proceeds of the recent raise swiftly and prudently into our pipeline of long-let, inflation-linked assets diversified across a range of defensive and structurally supported sub-sectors and leased to strong tenants, all of which we expect will create further sustainable value for our shareholders.
“Our portfolio continues to perform strongly, benefiting from the embedded inflation linkage in our rents, and its exposure to attractive sub-sectors of the real estate market including grocery and industrial. Meanwhile our recent acquisitions have further diversified our portfolio, including in areas such as life sciences and education, and clearly demonstrate our ability to create additional value outperformance for shareholders by sourcing attractive off-market properties and forward funding opportunities.”
Phil Kent, Manager of GCP Infrastructure Investments, said: “The most attractive opportunities are focused on infrastructure investments that support the wider transition to net zero. Historically, government support and investment has focused on the decarbonisation of electricity generation through renewables such as wind and solar. These sectors have become highly competitive and less attractive on a risk-adjusted basis as a result.
“GCP has an excellent track record of identifying new asset classes within infrastructure that benefit from public sector support and investing in these before they become less attractive. The wider energy transition, including flexible generation and storage, hydrogen, the decarbonisation of our heating and transport systems, carbon sequestration and controlled environment food production are all likely to be areas benefiting from attractive government support mechanisms in the coming years.”
Louise Cleary, Manager of Value and Indexed Property Income Trust (VIP), said: “Last month, we were pleased to announce the acquisition of five freehold index-linked properties for a total cost of £30.5 million at a 5.6% net initial yield, bringing the current total portfolio average yield to 5.7%. The five properties purchased were three industrial/warehouse units in Chester, Stoke on Trent and Westbury, a petrol filling station in Melton Mowbray and a supermarket in Newport, Isle of Wight. They all had index-linked leases, an average unexpired lease term of 10 years and were let to MKM Building Supplies, Arla Foods, BP Oil and Marks and Spencer. VIP is now almost fully invested after its transition to a predominantly property trust.”
