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.

Brexit, COVID-19 and the future of real estate investment

Within this whitepaper issues are discussed regarding economic disruption and distress caused by Brexit and COVID-19. Whilst this impacts the property market today, it is important to not forget the UK housing crisis, the consumer demand for developed technology enabled assets, and investor demand for higher property income yields as long-term themes. It is incredibly easy to focus on the effects that 2020 has had so far on not only the property market but the wider economy too. The market has witnessed unease and it can be easy to focus on recent issues as opposed to driving forward for the future. Now is the time to develop the platform to create wealth for investors not only today but looking into the future too.

Whitepaper Contents

Download UK Real Estate – Value Creation in a Transitional Market or click via the contents below to be taken to a specific section:

  1. What is Opportunistic Investing?
  2. The UK Opportunity Today
  3. Immediate Impacts
    1. COVID-19
    2. Brexit
  4. Longer Term Fundamentals
    1. Residential assets – relentless demand and undersupply
    2. Commercial real estate – a changing landscape
    3. The Chase for Yield
  5. Accessing the UK Real Estate Opportunity
  6. Risk Adjusted Strategies
    1. Development of new assets
    2. Land entitlement/planning gain
    3. Asset management, ideally in partnership with corporate occupiers
  7. Managing Risk in an Opportunity Fund Strategy
  8. Environmental, Social & Governance (ESG)
  9. Conclusion

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