In AMP Capital’s outlook for real assets in 2015, AMP Capital deputy head of global listed real estate James Maydew said sovereign wealth funds and super funds will “continue to lead the charge” for listed and direct real estate.
“Most major pension funds around the world have recently lifted their allocation to real estate, some as high as 15 per cent, using a mix of direct and listed,” Mr Maydew said.
“We expect to see continued deep pools of capital from all over the globe, especially China and Japan,” he said.
Mr Maydew also pointed out investors should look at the global gateway cities such as London and New York that are attracting both capital and growth.
“In an improving economic environment, investors should also be looking for economically-sensitive exposure with high growth such as the lodging and hotels sectors,” Mr Maydew said.
“Japanese developers are also an interesting proposition as they continue to recycle capital through their business [with] the backdrop of rising asset values, rental growth and occupancy and falling capitalisation rates,” he said.
Further adding to the outlook for 2015, AMP Capital global head of infrastructure equity Boe Pahari said there continues to be direct infrastructure investment focused on utilities and other cash-yielding assets.
“In Australia, ports will also be strong while in the US, the power and midstream energy infrastructure sectors are likely to attract a lot of interest driven by excess gas supply and improving economic conditions,” Mr Pahari said.
“In Europe, airports and telecommunications infrastructure are expected to be hotspots of activity and we expect to see both increasing deal flow and greater investor confidence in countries such as Spain, Portugal, Italy and Greece,” he said.
