After two years of repricing, real assets look more interesting than they have for a long time. Higher interest rates have reset valuations; strong fundamentals in several sectors have not changed. Here is where we are spending our time.
Logistics
E-commerce, near-shoring and cold-chain demand keep vacancy low in modern warehouses close to cities. We favour smaller, well-located assets over large speculative boxes.
The energy transition
Solar and wind are now mature technologies; the opportunity has moved to storage, grid connections and repowering older sites. Contracted revenue and inflation linkage make these projects attractive through the cycle.
Value-add real estate
Older offices and mixed-use buildings in strong locations can be repositioned with modern energy standards and flexible space. Buying well matters more than ever: the spread between good and average assets is widening.
In real assets, the entry price is the first and most important decision. The market is finally offering good entry prices again.
What we are watching
- Refinancing risk for assets bought with cheap debt in earlier years.
- Construction costs, which have stabilised but not fallen.
- Currency volatility in emerging markets.
