Several financial institutions have real estate funds with portfolio allocations specifically targeted to meet their pension scheme clients’ liability matching requirements. These funds focus on real estate with gilt/bond like qualities i.e. inflation protected, long dated, investment grade cash flows. Some higher yielding real estate funds also have an allocation for low risk assets which serve as a diversifier within a balanced portfolio.
There is a huge and increasing demand for long secure income real estate assets. The funds have £billions of available capital yet to be invested and the sourcing of these assets are key to the financial institutions though each fund has very specific requirements to match their risk profile – hence the value of Winterflood Rivers.