Long lease real estate investment provides long-dated, inflation-linked cashflows that are underpinned by owning real assets. Investors therefore benefit from:
– secured fixed income-like cashflows
– the potential for capital value growth over the long term
Is long lease real estate a growth or matching asset class?
In our view it has elements of both. Long lease real estate has the potential for closing funding gaps, whilst matching liabilities.
Long lease real estate can also offer good relative value versus all of its closest comparators: traditional real estate, corporate bonds and index-linked gilts.