Ripe for reinvention
Is it time to repurpose your real estate portfolio with flexibility, technology, sustainability and impact investing in front of mind?
Investors and developers are increasingly repurposing space across their real estate portfolios for a change of use because of new living and working habits among millions of people. Office spaces are being redeveloped with hybrid work models and new technology in mind, and shuttered retail stores are being repurposed into logistics or housing to cater to new community preferences.
Meanwhile, sustainability has reached the top of the real estate agenda with energy efficient buildings generating a premium. Investors are increasingly accountable for the social impact of their decisions and are balancing their portfolios to include impact investments and meet Net Zero Carbon targets - 69 percent of investors say that sustainability is now a higher priority than in 2020.
Investors at the forefront of these trends, who understand the opportunities, risks, and costs across their real estate portfolio will build resilience to withstand future social and economic shifts.
Reasons to repurpose
Focus on sustainability and impact investing
As investors become increasingly accountable for the wider social impact and social responsibility of their decisions, there will be a shift towards the inclusion of impact investments across their portfolios. Energy efficient buildings are gaining in importance and will generate a premium.
Cater to demand for hybrid work-live-play
As lines between work and life blur, hybrid real estate models are emerging and triggering a need to reassess the experience on offer in office buildings, shopping centres and hotels. Investors who repurpose existing assets with flexibility and technology at front of mind will outperform.
Build resilience for the future
The search for stable income streams is the primary driver among real estate owners and investors to repurpose assets, as they revaluate properties for a change of use to guard against future social and economic shocks that may upend their portfolios.
Restructuring and refinancing a major UK hotel group
Investors need to reposition, diversify and repurpose
What if real estate could deliver returns and reduce risk?
Investors need to reposition their strategies to suit a vastly changed world. They will raise, invest and restructure capital to prioritise long-term consumer trends over short-term profit.
Do you know which sectors and sub-sectors are growing fastest?
Investors need to look outside of traditional sectors for growth. Forward-thinking investors will deploy capital in new locations and sub-sectors.
Reposition, diversify and repurpose your assets and portfolios
Traditional real estate investment approaches are being challenged and investors need new strategies to drive returns and reduce risk.