Fourth largest investment fund in the world sees property as a bet

Brett Alegre-Wood
June 16, 2011

Why the fourth largest investment fund in the world sees property as a good bet

If you haven't heard of Lambda Alpha, it's the Honorary Society for the Advancement of Land Economics, a worldwide fraternity of property professionals, made up of architects, solicitors, town planners, academics, developers and a whole host of other property-related people. It's also the fourth largest investment fund in the world.

Sound awesome, right?

But seriously, stick with me, this gets better large investment funds

As a Board member of the London Chapter, I've spent the past week in Scotland at the annual Land Economics Weekend designed to showcase a city's land economics.

One of the symposiums was hosted by Scottish Widows Investment Fund (SWIP) who are in turn owned by Lloyds who are currently the 4th largest fund in the world, and during the usual dry commentary about Scotland and the benefits of fund management, some interesting statistics came out that I wanted to tell you about.

These are the stats that SWIP are basing their investment decisions on over the next five years.

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1. They believe that property will be the best performing assets class over at least the next five years (to at least 2016).

2. They believe that it will grow by at least 15% over the next 3 to 5 years due to a lack of supply and a return to lending.

3. They believe this will start in earnest in the middle of 2012.

For me there wasn't anything new here; anyone who reads my articles knows I've been saying this for ages.

But what REALLY struck me was the conversation that I had AFTERWARD with the presenter. large investment funds

I asked him which sector he felt would be a better investment over the next 5 years. Being a fund manager I expected to hear “the commercial sector will see a return to fortune” or some other version of the usual party line. (This is typical because residential is normally too small a transaction value for them to consider so therefore it's not an option.)

His answer seemed at first to go down that road: ‘The commercial sector will see increasing yields', but I pressed some more, he admitted ‘we're very upbeat about residential, values have clearly bottomed out and nowhere is the lack of supply more pronounced”.

No, this wasn't quite a full admission that residential is better than commercial, but it was the first time I've ever had a fund manager agree that residential property was a good investment!

Times they are a-changing.

If the fourth biggest fund in the world thinks property is a good investment over the next 5 years it might it be time for YOU to seriously consider jumping in too?

Who knows where it might take you?

Wealth and lifestyle maybe more?

Give the team a call on +44 (0)207 923 6100 or on their mobiles and they'll help you get a plan together and take the first steps to building your thriving portfolio whilst riding the wave of the next five years.

Sick of your Property agent not responding, or truly managing the changes in the market going on right now then give us a call 01522503717 or www.ezytrac.co.uk

Live with passion,
Brett Alegre-Wood

 


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