Real estate investment portfolios of financial institutions have seen dramatic
changes over the last three decades or more. Historically such property
investment decisions have been seen within a portfolio diversification
paradigm that has sought to balance risk and return. This paper considers
the role of the supply of assets in the determining and constraining the UK
institutional portfolio. The supply of real estate assets not only expands
during development booms but has also been transformed as the spatial
structure of cities and property forms adapt to cars and the ICT revolution.
The research examines long term temporal patterns n the development of
new forms of real estate and the change to the institutional portfolio as
exemplified by the IPD database. It considers to what net investment
changes are driven by the returns of individual sectors or vice versa based
on Granger Causality tests. It also assesses to what extent investment
patterns can be explained in terms of portfolio theory.
Jones, Colin, Neil Dunse, Nicola Livingstone, and Kevin Cutsforth. "The Restructuring of the Institutional Real Estate Portfolio in the UK." In 23rd Annual European Real Estate Society Conference. ERES: Conference. Regensburg, Germany, 2016.
Section: Real Estate Investment