This report provides an insight into the key drivers, challenges and investor considerations in increasingly prevalent long income markets.
Recent trends have seen investor demand continue to grow for long-term stable cash flows on property that is critical to the tenant’s business.
In particular, income streams with fixed or indexed linked leases provide an excellent hedge against inflation in a low rental growth environment and their demand has noticeably increased as a result of the Brexit turmoil.
Historically the majority of long lease property was found in the more traditional property sectors, however there has been a shift towards alternatives with an increasing weight of money targeting core assets.
Head of Investment, Mark Beaumont, comments; “There is an increasing trend from pension funds seeking less volatile and more predictable cash-flows and this has led to greater demand for the Alternative Sectors”.