We offer a range of asset classes at Property Partner, which enables our investors to build a diversified property portfolio across a number of returns profiles. Read on to find out more about each asset class, and click through to learn more about our acquisition strategies.
With a total value of £6.2 trillion, the housing market is the single largest asset class in the UK and the private rented element of this has come to represent a critical element of the UK household investment portfolio. Approximately 2 million private investors throughout the country are relying on residential property to preserve and grow their wealth, while earning increasingly important income as returns on savings are close to zero.
UK residential property is a defensive, total return asset class. It’s characterised by a combination of inflation beating capital growth and a growing income stream, closely linked to wages and prices throughout the economy. Although it continues to be the subject of constant media attention and scrutiny year in, year out, it has consistently outperformed cash savings, the stock market, bonds and other more volatile investments. Could residential property be the ultimate asset class?
Purpose-Built Student Accommodation (PBSA)
Purpose-built student accommodation (PBSA) differs from the student accommodation many of us remember. Today’s students are shunning the traditional house shares and out-of-date halls of residence as they’re perceived to be below par, with PBSA gaining in popularity from a more discerning student population. According to Cushman and Wakefield, demand for PBSA is high, with the average national student to bed ratio at 2.3 students per bed space available through PBSA, up from 2.14. However, supply is restricted, which adds up to a powerful investment opportunity.
Purpose-Built Student accommodation is a high yielding proposition, which is particularly attractive in the current environment of low interest rates. As the income for PBSA grows (which it has been steadily), so does the value of the building. The average annual total returns for PBSA over the past five years to 2017 have been 11.8%.*
UK Commercial Property is an established asset class with the market valued at £900 billion and £500 billion of the total stock held by investors. It includes any physical property used for commercial purposes, such as office blocks, industrial units, shops, restaurants, garages and other business outlets.
We believe Commercial Property offers a complimentary return profile to Residential and Purpose-Built Student Accommodation (PBSA), with total return driven by long-term income and the strength of the lease in place with a tenant. As an asset class, Commercial Property offers a number of benefits.
Property development debt
The most recent addition to the Property Partner platform, property-backed debt offers investors greater choice for diversification and the chance to access higher yielding investment opportunities across a range of risk profiles. Investors buy bonds, instead of shares, which are secured against expertly selected property development projects.
We aim to offer a range of attractive investments from a selection of property development finance experts, providing the opportunity to diversify while knowing that each lending partner and investment have met the high standards of transparency, security and expected performance required to qualify for listing on the Property Partner platform. We pride ourselves on the extensive due diligence our team carries out on our potential loan partners, the legal and financial aspects of each deal we bring to platform, as well as the project itself.
*Sources: CBRE student accommodation index. IPD quarterly property index. UK HPI & ONS rental growth index. Cushman & Wakefield UK Student Accommodation Report 2016/17.
Capital at risk. The value of your investment can go down as well as up. The Financial Services Compensation Scheme (FSCS) protects the cash held in your Property Partner account, however, the investments that you make through Property Partner are not protected by the FSCS in the event that you do not receive back the amount that you have invested. Past performance is not a reliable indicator of future performance. Gross rent, dividends and capital growth may be lower than estimated. 5 yearly exit protection or exit on platform subject to price & demand. Property Partner does not provide tax or investment advice and any general information is provided to help you make your own informed decisions. Customers are advised to obtain appropriate tax or investment advice where necessary. Please read Key Risks before investing.