Value Creation in a Transitional Market (UK)

Published July 29, 2020

Foreword by Chris Button, Head of UK Value Add REIM, Fiera Real Estate

Leo Tolstoy wrote in War and Peace that “the two most powerful warriors are patience and time”. As we watch COVID-19 impact the health and wellbeing of the world we live in, it is hard to predict the long-term effects of this crisis on society and the environment. However, this could but should not act as an advocate to waste the time we have now.

This paper sets out how thoughtful and patient investors should be preparing to enter a real estate market which Fiera Real Estate believes can create a generational buying opportunity. It also sets out why, as well as relying on the market opportunity created by dislocation, those investors brave enough to know when and how to add value in asset opportunities can receive outstanding additional returns in the years ahead.

CONTENTS:

1. What is Opportunistic Investing?

2. The UK Opportunity Today

3. Immediate Impacts 

i) COVID-19

ii) Brexit

4. Longer Term Fundamentals

i) Residential assets – relentless demand and undersupply

ii) Commercial real estate – a changing landscape

iii) The chase for yield

5. Accessing the UK Real Estate Opportunity Market

6. Risk Adjusted Strategies

i) Development of new assets 

ii) Land entitlement/planning gain

iii) Asset management, ideally in partnership with corporate occupiers

7. Managing Risk in an Opportunity Fund Strategy

8. Environmental, Social & Governance (ESG)

9. Conclusion