Global listed real estate, the opportunity
Global trends are set to drive demand for quality real estate assets for decades to come, particularly growing demand for quality real estate assets. According to the UN, 2.5 billion people will move to urban centres by 2050i. A tripling of the urbanised Asian middle class to 1.7 billion by 2020 is expected to lift investment in shopping centres and residential developmentsii, while an ageing population will fuel demand for healthcare and aged care assetsiii. Together, these trends underpin an attractive opportunity for informed investors to benefit from expertly selected global real estate investments.
Stable yields with the potential for ongoing growth - Global real estate assets typically deliver relatively stable income streams, often supported by long-term rental agreements with cornerstone tenants. These agreements tend to include inflation-linked adjustments or fixed rental increases, providing an in-built inflation hedge. Real estate investments also offer significant potential for capital growth, with long-term structural trends likely to accelerate demand for quality property assets.
Liquidity - Global listed real estate provides investors with liquid access to an illiquid asset class. Listed real estate companies and real estate investment trusts (REITs) provide daily pricing and trade like shares on the stock exchange, whilst the large scale of the listed real estate investment market offers the flexibility necessary to act efficiently and effectively in capturing quality assets.
AMP Capital, listed real estate
Award-winning expertise - Since 1849, the AMP Group has been helping individuals and institutions manage risk and grow wealth for the long-term. Today, the Group's investment management arm, AMP Capital, is a top tier global investment manager with $US120 billion in funds under management. AMP Capital has received a number of industry awards in recognition of this success, including most recently the Winner of Global REITS (10 year category) in the 2015 Asia Asset Management Best-of-the-Best Awards.
An integrated model - Our listed real estate team take a genuinely global approach to portfolio construction through an integrated stock selection methodology and active collaboration across regions.
Heritage - AMP Capital has over 50 years of experience in real estate investing. As the largest real estate manager in the Asia Pacific, AMP Capital is also a pioneer in listed real estate investing, managing US$6.2 billion in assets for investors from across five continents
AMP Global Listed Real Estate Fund
Our process is disciplined, transparent, and repeatable. This unique, globally integrated approach is a key source of competitive advantage that has enabled us to deliver strong returns across market cycles.
Our focus on consistently exceeding our investment objectives is reflected in our track record investing in global listed real estate.
We are one of the most well-resourced global listed real estate managers with 15 investment professionals located in London, Sydney, Hong Kong, and Chicago. Our globally integrated team enables us to exploit events regionally and globally.
Ala Moana Center
Owner/operator: General Growth Properties (GGP)
Leading position: one of the most productive malls in the United States and the largest open-air shopping centre in the world
Proven asset: 42 million visitors per year across its 340 shops & restaurants
Earnings: rental income from existing tenant base and large redevelopment program delivering significant value creation
Empire State Building, New York
Owner/operator: Empire State Realty Trust (ESRT)
Leading position: iconic office building with premium location in midtown Manhattan
Proven asset: diversified office tenant mix and one of the most popular observatory decks in the world with over 3 million visitors per year
Earnings: rental income from office and street level retail tenants, coupled with a highly resilient income stream from observatory decks
Understanding the risks
Risks specific to the fund include the risks of investing in share markets, infrastructure and global markets; as well as risks associated with derivatives and investment management.
i United Nations Department of Economic and Social Affairs, World Urbanization Prospects, 2014.
ii CBRE, The New Age of the Asia Pacific Retail Market, 2014
iii PWC, Real Estate 2020, 2014.
iv As at 30 June 2015.
v Towers Watson, Global Alternatives Survey, 2015.
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