Interesting story in the FT about Nordic property funds getting back into the game.
Nordic pension funds enthusiastically embraced opportunities in indirect real estate all over the world in the years leading up to the crisis, but were faced with a backlash as the markets began to tumble. Between 2008 and 2009, some investors saw the value of their indirect property portfolios dropping by about a third.
“Investors have in some sense rethought why they were getting into property in the first place. They are going back to core property investments for the risk and returns people thought they were going to get and drifting towards lower leverage. Some want to avoid leverage completely,” says Russell Chaplin, chief investment officer for property at Aberdeen Asset Management
Not all of these stories have to come off 100% in the end for there to be an impact. The more we hear about funds and investors getting back into property, the greater the level of liquidity in the market. With lots of financing coming due this year, that can’t happen soon enough. Full article here.