Thu, Jul 31, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Alternative property market offers attractive prospects in 2012, says Kames Capital

Thursday, December 08, 2011

Phil Clark
The alternative property sectors could offer some attractive opportunities in 2012, according to Phil Clark, head of property investment at Kames Capital.

Clark, who heads the property fund management team at Kames Capital, says alternative property sectors such as student accommodation could offer some appealing opportunities in what will be a challenging 2012.

My view is that 2012 will be every bit as challenging as 2011, however there are still many good opportunities for property investors to make well informed decisions."

"In particular I believe investors should consider a greater exposure to alternative sectors such as residential property, student accommodation or healthcare property. One of the key attractions of these alternative sectors is they generally have a high income yield, an ability to track inflation and have low vacancy rates.

Clark says investors should look at the fundamental drivers which make them attractive compared to some commercial properties.

"Investors need to give greater credence to the opportunities and investment attractions - such as basic demand - which make the alternative property sectors stand out from other commercial property investments."

In terms of residential property, Clark says the south-east is going through a major structural shift from a high ownership model to a need for greater rental accommodation, which is driven by the lack of mortgage finance. "This is creating rental increases in the order of 7% per annum in some locations, coupled with a lack of supply to meet demand," he says.

Meanwhile, despite recent protests over increased tuition fees and a fall in the number of university places available, Clark says opportunities still abound in student property. "Student accommodation demand for the best universities is leading to typical annual vacancy rates of less than 2 per cent," he says.

Finally Clark points to the percentage of the UK population becoming elderly and needing specialist nursing care which is being factored into the demographic profile.

"Despite this increase in numbers there are not enough quality nursing homes to accommodate this demand making this an attractive sector to invest in."

Press release

BM

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  2. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag

  3. Opalesque Radio: Now is a good time to buy protection cheaply in the options market[more]

    Benedicte Gravrand, Opalesque Geneva: Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have the

  4. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by

  5. Winton’s low-cost equities fund tops $1bn for first time[more]

    From FT.com: Winton, the London-based hedge fund, has increased the assets in its low-cost equities fund to more than $1bn for the first time in a sign that traditional stock managers may come under increasing pressure from computer-driven rivals. Winton, which manages about $25bn in total ass