More than a third of UK pension schemes already invested in real estate are actively looking to increase their exposure to the asset class, according to a survey conducted by Aberdeen Asset Management.
Of the 166 pension schemes that participated in the survey, almost two thirds already had exposure to real estate, 36 percent of which stated they would possibly look to increase their weighting. Another 57 percent said they would maintain their current exposure.
Of the pensions questioned that do not currently invest in real estate, 35 percent stated they were “actively considering allocating to the asset class”.
“Renewed interest in property as an asset class is not surprising as investors are increasingly looking to diversify their equity and fixed income exposure,” said Andrew Smith, the recently appointed group head of property at Aberdeen’s real estate investment management arm Aberdeen Property Investors. “The recovery of the UK property market continues, with strong investment demand continuing to drive a rise in capital values” he said.
Pensions not looking to invest in real estate cited liquidity issues and the perceived risk related to real estate investing among the reasons they did not expect to allocate to the asset class.
Aberdeen Property Investors is currently one of the largest real estate managers in Europe with assets under management of £22.6 billion (€26.2 billion; $32.59 billion).