Direct Real Estate

Invesco Global Direct Real Estate Strategy

Our global strategy offers access to a truly diversified portfolio constructed from four core Invesco Real Estate open-ended strategies covering Asia, Europe and the US.

At a glance

We aim to meet our return objectives by constructing a balanced, diversified portfolio of high-quality institutional grade real estate that can generate durable income. The strategy offers a low correlation to stocks and bonds and a higher correlation to inflation.

Goals

The Global Direct Real Estate strategy seeks to provide, over the long term, an average annual gross total return of 7% to 10%, expressed in US$. This return target represents an assessment of what we believe is achievable based on the historical performance of the underlying strategies, current strategic allocations, current market conditions and capital projections into the strategies. There are no guarantees that the return target will be achieved.

Investment process

Our global real estate strategy invests in four open-ended Invesco Real Estate strategies, two invested in the US (core and income) and our two core strategies in Europe and Asia.

By investing in the four strategies listed above, we have exposure to over USD 24.5 billion in global asset value composed of over 194 investments in 15 different countries (as of June 30, 2019).

There is a strategic weight assigned to each of the four strategies. However, actual allocations will also include an ‘active’ component, which will reflect our Global House View. The Global House view is fed by the three regional house views in Asia, Europe and the US.

The investment process focuses on portfolio construction and consists of three active phases: strategy and tactics; implementation and execution; and performance evaluation.

Why Invesco

Extensive market coverage

Our Global Direct Real Estate strategy leverages Invesco Real Estate’s entire global platform. As of 30 June 2019, we had 519 employees worldwide at 21 offices and 16 countries.

This gives us ‘boots-on-the-ground’ across the target investment markets – the four underlying strategies have exposure to over 194 high-quality investments in 15 different countries worldwide.

We believe our in-depth knowledge of the regional markets and local presence enhances both our ability to source off-market deals and our execution capabilities.

Experienced team

We believe our investment team represents one of the most skilled, stable and experienced groups in the real estate investment business. Our global senior management team has an average tenure of 14 years at Invesco and 27 years’ industry experience.

The team has had extensive experience managing a variety of investments across multiple market cycles. This collective experience will be brought to bear in the screening, selection and execution of investment strategies for our clients.

Differentiated deal flow

Invesco Real Estate possesses a significant competitive advantage in sourcing transactions, much of which is proprietary in nature. Our team of experienced investment professionals has developed a ‘quality of capital’ reputation that provides sellers with certainty of close.

We believe our broad investment capabilities and strong reputation in our target markets provides client’s access to attractive, off-market opportunities.

Investment team

Invesco Real Estate operates a cross-functional team philosophy with highly skilled investment teams being used on a variety of different mandates. The result is that we have teams of specialists rather than generalists, which we believe adds more value to the investment process.

Our global strategy is overseen by the GDRE steering committee made up of senior investment professionals from various disciplines across Invesco Real Estate. Tracey Luke is the lead portfolio manager.

Investments into or out of the underlying strategies will be made by the portfolio manager. These decisions will be based on the Global House View and a variety of portfolio construction criteria defined by the steering committee, which provides advice on the target strategic and tactical allocations to each region – US, Europe and Asia.

Investment risks

  • The value of investments and any income will fluctuate (this may partly be the result of exchange-rate fluctuations) and investors may not get back the full amount invested. Invesco Real Estate Strategies: Property and land can be difficult to sell, so investors may not be able to sell such investments when they want to. The value of property is generally a matter of an independent valuer’s opinion and may not be realised.

Important Information

  • Data as at September 2019, unless otherwise stated. By accepting this document, you consent to communicate with us in English, unless you inform us otherwise. Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.
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