UK-Based Investors in Real Estate

by Forena Akthar

  • 13 Jul 2011
  • PE
  • RE

Investors based in the UK account for 13% of institutions allocating to the real estate asset class. UK organisations of various sizes invest in the property market. 15% have assets under management of less than £250 million, 10% manage assets of £250-499 million and 15% have total assets of £500-999 million. 40% of UK investors in real estate fall into the £1-4.9 billion size category, 7% manage assets of £5-9.9 billion and 10% have £10-49.9 billion under management. Only 3% of UK-based investors in property have more than £50 billion in assets under management.

In terms of investment preferences of UK institutions in the real estate asset class, 67% will invest in private equity real estate vehicles, 55% allocate directly to the asset class and only 16% invest in listed real estate instruments. 84% invest in unlisted core real estate funds, such as property unit trusts (PUTs).

UK investors have a strong domestic bias when investing in property funds, with 97% having a preference for investing in Europe-focused vehicles. The 3% that do not invest in European private real estate typically have direct domestic real estate portfolios and only utilise private funds to invest in overseas property. 27% are interested in gaining exposure to Asia and Rest of World markets through private real estate and 23% have a preference for North American real estate funds.

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