The market is polarising in real estate, argues Matthijs Storm of Kempen Capital Management. You need to find the right assets at the right price, in the right place. We spoke at GAIM 2016, 21-22 June 2016.
“I think active management in the real estate space makes sense particularly because we see a market where polarisation is taking place. Some good quality assets in good locations are performing stronger and stronger.
You see that, for example, in the best shops in the high street that are being used by retailers as their flagships – there you will see your rents going up and will continue to come up: and then see lower quality assets. For example, some of the shopping malls in the United States are becoming completely empty.
So the key thing is to be able to select the right assets in the right locations and that is where our unique process comes into play. We have built a data infrastructure that collects all kinds of data points about all these properties globally that are being indirectly held by listed property companies and this data infrastructure allows us and enables us to select exactly that prime high street shop that is being leased to a retailer that uses it as a flagship, and avoids the mall in the United States for example with zero per cent occupancy.”