Within the investment landscape, there are many assets classes for investors looking for yield on their capital — these range from stocks, bonds, commodities to real estate and more.
We look for long term sustainability and avoid excess volatility from inflated valuations, and market sentiments that some assets classes present.
Historically, real estate has shown to be able to weather through varying market conditions to deliver consistent yields while appreciating at the same time.
UN reports that the human population has exploded from 1.5 billion people in 1900 to over 7 billion today. Furthermore, the current global urban population which stands at 55% is projected to reach 68% by the year 2050.† All these illustrate the potential of real estate where urban land spaces are limited. Spaces for living, work, and play will always be an intrinsic part of our lives and demand for such areas will only increase with the current pace of urbanisation.
Real estate has another benefit when compared to stocks and bonds, which is its ability to act as a partial hedge against the effects of inflation. Generally, with rising inflation, rents and property prices increase, which in turn benefits real estate value.
Real estate investment is not a passive game of chance. We select the properties based on real estate cycles, local government policies, macroeconomic conditions to finally structural flexibility of the property.
Property management is a constant transformation process. We have direct control and best practices to improve our properties to drive demand. These include external upgrading of building to internal space repurposing to incorporating intelligent facilities. With better quality space, we can attract and retain top tenants.
As we drive towards stronger yields, we also bear in mind our exit strategy to hedge against risks. With our ability to improve properties, we are also a turnkey provider allowing us to market our any of our property to other investors.
† UN 2018 Revision of World Urbanization Prospects
https://www.un.org/development/desa/publications/2018-revision-of-world-urbanization-prospects.html
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