VIDEO: BlackRock on the merits of ‘operationally intensive’ real estate

Paul Tebbit, managing director of the BlackRock UK Property Fund, on the attraction of 'operationally 'intensive' assets in the portfolio


Operationally intensive property. What is it and what are the benefits?

BlackRock defines it as cashflow from an asset, which is generated directly from the business operating it and therefore not disintermediated by a lease. Think student housing on a direct let basis, the private rented sector, and hotels and hostels with management contracts. But now BlackRock is seeing this situation with more traditional assets, such as flexible office space and even some shopping centers. And for managers, these assets come with additional benefits, too.

In this video, Paul Tebbit, managing director of the BlackRock UK Property Fund offers the firm’s perspective on these assets, as well as why logistics remains an attractive opportunity for the firm and how to invest successfully in retail property in a tough UK market.