| Making an impact through real estate investment
A new white paper from CBE Global Investors out this week looks at the role of real estate impact investing in the current coronavirus recovery climate. And it's a timely piece of research with the global response to the pandemic having coincided with an increase in public interest in systemic inequalities, injustice in society and fears of irreversible climate change.
The report, Impact Investing in a Pandemic, suggests that to do good, investors no longer need to be prepared to sacrifice returns. In fact, ESG-oriented investments, and in particular those linked to affordable housing, offer steady, predictable returns in an uncertain world and are less exposed to 'cyclical market forces and systematic risks'.
"Covid-19 has accelerated numerous existing trends in real estate and this is true here as well, both in the growing demand for affordable housing in cities across Europe and for investments that can deliver both a substantial positive impact on social and environmental challenges alongside a competitive and risk-adjusted financial return," says Andrew Angeli, Head of European Real Assets Research ay CBRE Global Investors.
In another piece of post-pandemic research, an Ipsos MORI study, on behalf of St Modwen, looks at how lockdown has changed people's 'wish lists' in terms of housing and where they live.
Perhaps predictably, access to private outdoor space or proximity to green public spaces is high on most people's list of priorities, while nearly half of respondents (49 per cent) say a fast reliable internet connection is more important than it was pre-lockdown.
With international travel still problematic, acquiring an overseas property is probably not a top priority for many people, but Greek developer Leptos Estates is predicting a Q4 boom in sales on the back of new government programmes designed to appeal to both European pensioners and non-European HNW purchasers.
The country's existing 'Golden Visa' programme has already attracted 10,000 investors while Leptos Estates expects new initiatives offering European pensioners a flat tax rate of seven per cent across their global income, and non-Europeans, who invest EUR500,000 in property, a flat maximum tax of EUR100,000 across global income.
While air travel may be experiencing severe turbulence currently, DP World and CDPQ both appear to see a calmer forecast for the shipping sector. The companies have announced an additional USD4.5 billion capital commitment to their ports and terminals investment platform taking total funding to USD8.2 billion.
"The opportunity for the port and logistics industry is significant and the outlook remains positive as consumer demand triggers major shifts across the global supply chain," says Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World.
In other deal developments this week, the focus is on Germany with news of commercial, residential and retail acquisitions in Frankfurt, Berlin and Hamburg, involving ABG Real Estate Group, Catella and Benson Elliot.
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