Lonsec reviews global property
The global real estate securities sector presents a unique opportunity for informed Australian investors who are familiar with the domestic property trust market, according to Lonsec.
The researcher made this claim as part of its 2006-07 sector review of global property securities, which covered 12 funds.
Lonsec senior investment analyst for property and infrastructure Paul Pavlidis explained that the appetite Australian investors have for property, combined with their unparalleled experience and success in real estate securities investment, indicated they were capable of pushing the asset class forward.
He said that the key drivers of global property securities stemmed from a number of factors, namely structural change through the adoption of REIT legislation.
“When you have a global mandate, fund managers are able to invest in less mature markets — giving them access to mispricing opportunities,” Pavlidis added.
When investing in global property securities, Pavlidis said investors needed to take a total return view on their returns as the asset class’ yield were substantially lower than Australian listed property trusts.
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