Sun, Jun 26, 2016
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 Roundup: Hedge funds shrink as liquidations outpace new launches in Q1: hedge fund news, week 27[more]

    In the week ending 17 May, 2016, HFR said hedge fund liquidations declined narrowly to begin 2016 after rising sharply to conclude 2015, as investors positioned f

  2. Europe - Hedge funds keep powder dry over big Brexit bets, Hedge funds sense profit in Europe shock waves after Brexit vote, Soros warns Brexit may cause pound plunge worse than Black Wednesday, After Brexit: What will happen if Britain votes to leave the UK?[more]

    Hedge funds keep powder dry over big Brexit bets From FT.com: Hedge funds are shying away from big bets on Brexit, with many unwilling to risk further losses having already suffered a painful first half of the year. With the outcome of a UK vote on the country’s membership of the Europea

  3. News Briefs - ’Flash Boys’ get green light to launch stock exchange, Pimco says ‘storm is brewing’ in U.S. commercial real estate, Bankers get ready to rumble at Hedge Fund Fight Night, AIMA Australia celebrates 15th anniversary[more]

    ’Flash Boys’ get green light to launch stock exchange In an investing environment ruled by fast, the newest U.S. public stock exchange is banking on slow. Well, slower. IEX Group, which won Securities and Exchange Commission approval on Friday to go head-to-head with the New York Stock E

  4. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  5. Visium hedge fund manager Sanjay Valvani found dead[more]

    Benedicte Gravrand, Opalesque London: A hedge fund manager connected with an insider trading case has apparently committed suicide. Sanjay Valvani, 44, a hedge fund manager at New York-based Visium Asset Management, was found dead in an apparent suicide on 21 June in his Brooklyn residence,