EG Finance & Investment Summit: Where would panellists invest £1bn? Retail, alternatives, logistics and London were just some of the options.
Derek Jacobson, co-chief investment officer at Madison International, said: “I would take the ultra-contrarian view and focus on retail. If you are looking to find value today, because of the dislocation in the market, you can find it in the right places.
“Not all retail is equivalent to each other. There is certain ultra-core retail that is less susceptible to disruption where you can find amazing value relative to other assets classes.”
GM Real Estate’s Tony Gibbon said he would continue to focus on London.
“I am a great believer in the city I was born in and I operate in, which is London. It offers numerous opportunities to create value. I have no problem advising our clients to look here.”
Caution over the UK market
However, Teresa Gilchrist, director and head of investor relations at M7 Real Estate, said that if investors were sensitive about when they needed to exit, they needed to be very careful about investing in the UK at the moment.
“I like diversification,” she said. “However good we think covenant is, trying to avoid concentration is key. And I would focus more on Europe than the UK. There is a case for the UK but it is harder to find value.”
While panellists did not agree on an investment strategy, they all saw technology as a key concern.
Jacobson said: “I think our industry has underestimated how technology is going to affect our industry. I am not sure any of the major food groups are immune to that, and we are coming to a point where that disruption could seem more real.”
He pointed to the effect of autonomous vehicles on logistics, which previously wanted buildings within 10 miles of a city centre, but now can find a warehouse 100 miles away with far cheaper land because the delivery car can drive all night.”
In answer to what he thought the effects of technology and changing occupiers would be on London, Gibbon was more optimistic.
“We deal with future proofing by talking to people, talking to the occupiers about what they think they want and why they want it.
“Anyone who thinks financial services is growing here or anywhere else in the western world is kidding themselves. But tech businesses really are. We don’t know exactly what they want, but we have the opportunity to work together.”
Listen to the full podcast from the summit here
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