European investors are increasingly putting their money into alternative real estate, according to AAA.
Boston, MA, April 21, 2012 – European investors are increasingly putting their money into alternative real estate, according to Alternative Asset Analysis (AAA).
The alternative investment advocacy group said that a recent report from the Wall Street Journal pointed out that institutional investors are buying up unusual property, worth millions, as they look for alternative ways to make money away from the equity markets.
An example cited by the Wall Street Journal is Barclays Capital PLC’s plan to sell a majority stake in university Partnership Programme, which owns 22,000 student accommodation rooms, to Netherlands-based pension fund PGGM for £1 billion.
Another deal, also taking place in the UK, is Blackstone Group’s sell off of student accommodation blocks in London to Round Hill Capital for £400 million.
“There’s no denying that student accommodation is hot property at the moment,” stated AAA’s analysis partner, Anthony Johnson. He added, “institutional investors have had their fingers burned through their equity investments and are now looking to buy up property that they think will rise in value in the coming years.”
AAA said that this reflects the general attitude of investors at the moment, as they look to diversify their portfolios by seeking alternative asset classes.
AAA added that individuals can invest in real estate in emerging markets, particularly in Latin America, to get the very best deals in up and coming areas. It also recommends investing in sustainable forestry in these regions, as the entry investment needed is relatively low and returns regularly outperform traditional asset classes.
“Timber prices are set to rise in the coming few years and with opportunities to invest from as little as £10,000 through firms like Greenwood Management, which runs plantations in Brazil, there’s rarely been a better time to invest in forestry,” added Mr Johnson.
The demand for timber is increasing as a result of rapid economic growth in China, Brazil and India.
Contact;
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-939-9596
info@alternativeassetanalysis.com
http://www.alternativeassetanalysis.com