An increasing number of Nordic-based investors
have begun to reassess their investment strategies
and are being lured back to making real estate purchases, the Financial Times reports.
Pension funds in the region had been very active in property markets all around the world in the years leading up to the crisis, but were faced with a backlash as the markets began to tumble.
Aberdeen Asset Management explains that between 2008 and 2009, some investors saw the value of their indirect property portfolios tumble by around a third.
"Investors have in some sense rethought why they were getting into property in the first place. They are going back to core property investments for the risk and returns people thought they were going to get and drifting towards lower leverage. Some want to avoid leverage completely," Russell Chaplin, chief investment officer for property at Aberdeen Asset Management, told the FT.
The comments follow the results of the Investment Intentions Survey 2011 by Inrev which found that about 70 per cent of Nordic investors plan to increase their exposure to non-listed real estate over the next two years.
- Tuesday 15 February 2011