LISTEN: Investing in alternatives and schemes linked to infrastructure are good ways to extract value in a crowded market, according to M&G’s chief executive Alex Jeffries.
Speaking at the Nabarro Global Real Estate Conference, Jeffries discussed the growing activity surrounding non-traditional real estate sectors, including the alternative market.
He said that activity in the sector had been growing, with more than £20bn of investment, and more being bought in the first half of 2015 than the whole of last year.
Student housing and hotels were particularly active, while car parks, health clubs, healthcare facilities and leisure schemes were marked as attractive options.
Other speakers at the conference included Manesh Chande, senior partner at Clearbell, who discussed the rise of the northern powerhouse and the economic implications for the industry if Labour leader Jeremy Corbyn was to become prime minister.
Ben Sanderson, director of international investment Hermes Real Estate, warned that a reliance on complex financial models and structures “will not deliver us the holy grail”. He added that benign markets should not lull the industry into a false sense of security.
Closing the morning session, Alastair Parvin, founder of WikiHouse, encouraged guests to imagine a new sector where digital fabrication technology, such as 3d printing, could introduce a homeowner-led solution to the housing crisis by allowing customers to assemble pre-designed high-quality homes.
shekha.vyas@estatesgazette.com
