Wed, Jun 28, 2017
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. Investing - Advisors slash hedge fund positions, Theravance Biopharma is a top pick of investment guru Seth Klarman, As asset management industry grows a search for new revenue streams[more]

    Advisors slash hedge fund positions From Barrons.com: Financial advisors have cut wealthy clients' exposure to hedge funds by up to one third over the past 12 months, The Financial Times reports. Advisor firms in the FT's annual top-300 ranking have reduced their hedge fund allocation to

  2. Investing - U.S. hedge fund in anonymous bet against Tesco shares, Hedge funds made repeated attempts to invest in Veneto banks, Steve Cohen's Point72 takes stake in struggling electronics retailer Conn's, Hedge fund Excalibur bets Riksbank will tighten by end of year[more]

    U.S. hedge fund in anonymous bet against Tesco shares From FT.com: A $20bn New York hedge fund is using an offshore shell company to anonymously bet against the shares of the UK supermarket Tesco, raising fresh questions over the efficacy of European short selling disclosure rules.

  3. ...And Finally - Nighttime barbecue festival in downtown Memphis![more]

    From Newsoftheweird.com: On May 19, Carl Webb and his wife left a nighttime barbecue festival in downtown Memphis and headed home. They drove 14 miles on an interstate highway before a police officer pulled them over to ask if Webb knew there was a body on his trunk. The man was clinging to the lip

  4. Global macro hedge funds lose on sharp drop in oil prices[more]

    Komfie Manalo, Opalesque Asia: Global macro hedge funds suffered losses due to the sharp fall in oil prices and the drop in U.S. and U.K. Treasury yields, Lyxor Asset Management said in its Weekly Briefing. The Lyxor Global Macro Index fell -1.0% from 13 June to 20 June (-3.4% YTD). The Lyxor

  5. State pension plans see liabilities increase in 2016 - Wilshire[more]

    Bailey McCann, Opalesque New York: The funding ratio of state pension plans dropped four percentage points to 69 percent in fiscal year 2016, according to Wilshire Consulting. A year ago, Wilshire Consulting's annual state funding report uncovered a funding ratio of 73 percent. "U.S. stock pe