Targeting pockets of rental growth
Right now, we are upbeat about the prospects for rental growth in key sub markets and are actively focusing on well-placed locations, sectors and buildings. The flexible hybrid structure of our Property Growth and Income Fund enables us to do so. Through our listed holdings – accounting for around 70% of the portfolio – we’re able to target pockets where strong and improving tenant demand combine with supply constraints to push rents higher. Strong incumbent names in Stockholm, Paris, Madrid and Barcelona offices, residential property specialists in Germany and logistics infrastructure across the continent all currently fall into this category.
Revamping Reading office space lifts rental value
Around 27% of the portfolio is currently in UK physical assets. We own 28 buildings – each of which are small liquid lot size – totally focused on industrial and office premises. Within industrials, the portfolio is primarily comprised of distribution and manufacturing assets and, geographically, exposure is orientated towards the South East because of its strong economic characteristics.