We offer a range of asset classes at Property Partner, which enables our investors to build a diversified property portfolio across a number of returns profiles. Read on to find out more about each asset class, and click through to learn more about our acquisition strategies.
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With a total value of \u00a36.2 trillion, the housing market is the single largest asset class in the UK and the private rented element of this has come to represent a critical element of the UK household investment portfolio. Approximately 2 million private investors throughout the country are relying on residential property to preserve and grow their wealth, while earning increasingly important income as returns on savings are close to zero.<\/p>\n
UK residential property is a defensive, total return asset class. It\u2019s characterised by a combination of inflation beating capital growth and a growing income stream, closely linked to wages and prices throughout the economy. Although it continues to be the subject of constant media attention and scrutiny year in, year out, it has consistently outperformed cash savings, the stock market, bonds and other more volatile investments. Could residential property be the ultimate asset class?<\/p>\n
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Purpose-built student accommodation (PBSA) differs from the student accommodation many of us remember. Today\u2019s students are shunning the traditional house shares and out-of-date halls of residence as they\u2019re perceived to be below par, with PBSA gaining in popularity from a more discerning student population. According to Cushman and Wakefield, demand for PBSA is high, with the average national student to bed ratio at 2.3 students per bed space available through PBSA, up from 2.14. However, supply is restricted, which adds up to a powerful investment opportunity.<\/p>\n
Purpose-Built Student accommodation is a high yielding proposition, which is particularly attractive in the current environment of low interest rates. As the income for PBSA grows (which it has been steadily), so does the value of the building. The average annual total returns for PBSA over the past five years to 2017 have been 11.8%.*<\/p>\n
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UK Commercial Property is an established asset class with the market valued at \u00a3900 billion and \u00a3500 billion of the total stock held by investors. It includes any physical property used for commercial purposes, such as office blocks, industrial units, shops, restaurants, garages and other business outlets.<\/p>\n
We believe Commercial Property offers a complimentary return profile to Residential and Purpose-Built Student Accommodation (PBSA), with total return driven by long-term income and the strength of the lease in place with a tenant. As an asset class, Commercial Property offers a number of benefits.<\/p>\n