Discover our broad range of real estate strategies, with investment opportunities from around the globe.
From core to opportunistic, in debt and equity, we manage the full spectrum of real estate assets globally.
Our real estate team has over 20 offices with professionals working throughout the globe.
Providing platform stability and global consistency with a fine-tuned investing process since 1983.
Uncovering unique real estate opportunities around the globe requires viewing the asset class from every possible angle. Our multi-dimensional view of real estate — throughout the capital stack and across the risk/return spectrum—combined with all the aspects of our business work together to create a robust picture of each investment opportunity. Invesco Real Estate has actively invested from core to opportunistic in debt and equity for over 40 years.
Our growing business in Europe, North America and Asia via separate accounts, commingled vehicles and mutual vehicles strengthens our ability to underwrite and execute deals. As we use innovation to grow portfolios, we are continuously identifying emerging sectors and launching new fund structures to benefit investors.
| High quality direct real assets | Durable income with NOI growth | Daily pricing |
|---|---|---|
| Provides instant access to a highly diversified portfolio of over US$30 billion, with around 240 high quality direct real estate assets in the US, Europe and APAC regions. | Aims to provide durable income and strong net operating income growth , which is generated by high quality credit leases. | Combines global real estate investments, listed real estate, cash and cash equivalents for liquidity. |
The Invesco Global Real Estate Strategy is designed to provide investors with daily pricing and liquidity while accessing direct global real estate investments.
The strategy allocates approximately 70% to high quality direct real estate, and 30% to real estate securities and cash/cash equivalents. The idea is to deliver stable income with NOI growth, diversification and strong relative performance – all while offering daily liquidity and pricing. This makes the strategy particularly relevant for smaller pension fund and Insurance investors who wish to gain access to the same assets as large institutional investors.
| Deep local relationships and expertise | Focus on income | Globally diversified portfolio |
|---|---|---|
| Our on-the-ground experience, reputation and deep local relationships give us a significant competitive advantage in sourcing opportunities for our clients while executing a consistent global strategy. | Our focus on “high-quality” assets should provide durable and growing income over time while also proving relatively resilient to any downturns. | The four underlying strategies have exposure to around 240 high quality investments worldwide and provide access to a highly diversified portfolio across sectors and regions. |
The Global Direct Real Estate Strategy is a proprietary strategy only available from Invesco. As such, it benefits from our global platform and regional strategies. More specifically, it invests in four open-ended Invesco Real Estate strategies, two invested in the US (core and income) and two core strategies in Europe and Asia. We aim to meet our return objectives by constructing a balanced, diversified portfolio of high-quality real estate that can generate durable income. The strategy offers a low correlation to stocks and bonds and a higher correlation to inflation.
| Manage-to-Core Approach | Durable and growing income | Building on quality |
|---|---|---|
| Our portfolio has an active approach to the European real estate opportunity. We aim to create the highest quality with investments aimed at tomorrow’s customers. Our strong focus on manage-to-core assets, e.g. we invest exclusively in good locations and enhance the quality of the properties there, drives the performance of the strategy. | We focus on assets with high occupancy and with high-quality tenants. NOI (Net Operating Income) growth is driven by indexation and active leasing momentum. | Our portfolio is well diversified across European countries and the office, retail, logistics and residential sectors. Allocations anticipate secular trends and drive performance. The focus is on excellent locations, long leases and strong tenants. |
In our European strategy, we create a diverse, balanced pan- European portfolio by focusing on location, building quality, tenant strength and rental levels to target a sustainable net distribution income. The strategy aims for durable and growing income driven by our active approach to portfolio management). Our underlying strategic principles underpin a strong core investment portfolio providing resilience through cycles with our consistent investment themes approach. The strategy is 5-star GRESB* rated and SFDR Article 8 compliant.
| Differentiated Deal Flow | Income focus | Diversified portfolio |
|---|---|---|
| Our on-the-ground experience, market reputation and deep local and longstanding relationships give us a significant competitive advantage in sourcing transactions and off-market opportunities for our clients. | We aim to construct a well-diversified, income-oriented portfolio with income accounting for at least 50% of returns. | Invesco Real Estate focuses on high-quality assets in seven key markets, including Australia, Japan, South Korea, Hong Kong, China, Singapore, and New Zealand. We have expertise across the office, retail, industrial and residential rental sectors. |
The strategy offers the possibility to invest in a broadly diversified real estate portfolio. The focus is on high-quality, high-yield properties with long-term leases in gateway markets in the Asia-Pacific region. We aim to meet our return objectives by constructing a well-diversified and balanced portfolio of high-quality real estate, which is focused on total return and long-term income.
| Offering stable, high-yield income | Established excellence | Open-ended structure |
|---|---|---|
| Our strategy aims to offer a stable, high-yielding income stream with significant asset-backed downside protection. | Established team with 11-year track record and 20+ years of experience, €1.7bn of loans originated across 6 European markets. | Innovative approach to an otherwise illiquid asset class. The strategy’s open-ended nature allows for greater liquidity than otherwise available. |
Our direct lending strategy is focused on the direct origination of income producing loans secured on high quality assets, with strong ESG credentials. As an alternative lender our approach focuses on a ‘property first’ philosophy focused on the assets, the business plan and the sponsor. We favour a diversified range of sectors from logistics to hotels and student accommodation across the UK and Western Europe and have the advantage of utilising the expertise of our on-the-ground teams across Europe to fully understand local market opportunities.
| Relative value | Fundamental value creation | Risk discipline |
|---|---|---|
| Focus on optimising the capital structure entry point, diversifying execution across markets and product types, and leveraging the unique Invesco platform. | Position one step ahead of competing capital and anticipate the acquisition expectations of core purchasers in the future. With this in mind, the strategy exploits inefficiency at entry and aims for fundamental value creation during ownership. | Invest with a quality and location bias with appropriate use of leverage. “All-weather” investment principles aiming to perform in a dynamic market environment. |
With an emphasis on relative value and the flexibility to invest across the full capital structure, our value-add strategies are positioned to act with speed and conviction to take advantage of acquisition opportunities that arise during a period of economic uncertainty in Europe. Invesco Real Estate’s third European value-add strategy aims to capitalise on market disruption in order to capitalise on short-term pricing opportunities as an attractive entry point to fundamental, long-term value creation.
We seek attractive risk-adjusted returns consistent with sustainable investment principles, focusing on sectors in structural transition with opportunities to improve or create next generation real estate. In addition, we have access to proprietary partnerships, where we believe there is compelling value to be created from vertical integration in an increasingly operational environment.
| Income potential | Diversification | Volatility |
|---|---|---|
| Potentially higher levels of income versus traditional equity and fixed income asset classes. | Historically lower correlation to broader equity markets. | Traditionally less volatility and downside capture compared to real estate equity-only approaches. |
Invesco’s Global Real Estate Income Securities (GREIS) Strategy invests across the entire real estate capital structure – i.e. listed equity, Commercial Mortgage Backed Securities (CMBS), corporate debt and preferred equity. The goal is to produce equity-like returns and a high level of current income, while mitigating against volatility and drawdowns.
| Growth sector | Established portfolio | Market opportunity |
|---|---|---|
| The strategy provides access to a growth sector with positive demand / supply fundamentals. The hotel sector benefits from increasing tourism and business travel in key gateway cities across Europe. | The strategy allows exposure to a diversified, pan-European hotel portfolio of high-quality central assets with best-in-class ESG credentials and further growth potential. | With strong operating performance and tenant demand the strategy aims to utilise good market timing to access assets at attractive pricing and targets active repositioning to drive performance. The strategy is well placed to take advantage of the market opportunity to add to returns. |
Hotel real estate is an established sector, providing long-term income potential from high-quality assets and locations in major European cities with balanced demand drivers and with inflation-linked long- term leases. Healthy supply and demand fundamentals in the sector remain supportive and provide further growth opportunities. Our intent is to create investments that can deliver long-term compound growth above the market.
Important information
This marketing communication is exclusively for use by Professional Investors and Qualified Clients/Sophisticated Investors in Continental Europe (as specified in the important information), for Qualified Clients/Sophisticated Investors in Israel, for Professional Clients in Dubai, Ireland and the UK, for Sophisticated or Professional Investors in Australia, for Institutional Investors in the United States, for Institutional Investors in Singapore, for Professional Investors in Hong Kong and for Wholesale Investors (as defined in the Financial Markets Conduct Act) in New Zealand. In Canada, this communication is intended only for investors who are (i) Accredited Investors, and (ii) Permitted Clients, as defined under National Instrument 45-106 and National Instrument 31-103, respectively. It is not intended for and should not be distributed to, or relied upon by, the public or retail investors. Please do not redistribute this document.
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. Property and land can be illiquid and difficult to sell, so the strategy may not be able to sell such investments when desired and at the intended price. The value of property is generally a matter of an independent valuer’s opinion and may not be realised.
Reflections from Invesco Real Estate’s Value Add Team
Kevin Grundy
Let let's talk about what we've experienced the last 12 months. And let's start with our vantage point, because we had a little bit of an unusual position when the market was generally retreating and transaction volume was down considerably across Europe. We were out there playing offense while a lot of people were playing defense. And you know, Richard, you and I have been doing this for about 25 years or so in value add opportunistic investing. It feels to me like the environment that we're in right now is more career defining than any other time during that period. And I wonder if you feel the same about that.
Richard Chambers
I absolutely do. I think, as you say, time flies in 25 years. If you go back to the pre-GFC years when we were starting out, the value add discipline, I think was a bit different. It was very much bottom up, very granular sourcing, and it was all about how you drove returns out of your activity within that piece of real estate. I think what we've seen in recent years has been a slightly different shift, with momentum and market movement playing a part in that. And back then, it was all about underwriting at the asset level. If the market came into the equation, it was really how do I protect in a downside situation, what levers do I have? How can I mitigate those impacts? And I think, to execute like that, you need local teams. You need boots on the ground. It is very granular and I think we're back to that kind of discipline again. So for people like you and I who've been doing this for a long time and grew up back in that environment, and actually for many of our colleagues who did the same, this is a market that that really plays back to those strengths.
Kevin Grundy
It's the skill set that that you can apply right now. So one of the things that that we haven't really seen in the market is full on distress. I think some people, outside observers have been expecting that, but I wouldn't describe what we're experiencing as full distress. But there's been enough stress in the market to push forward some opportunities that we felt are pretty interesting for our value add program. What you might call deep value. And really, the characteristics that these deals share are they're repriced assets. The structuring is much more sensible, I think, than it has been in more recent years when the markets were rising. And one thing that I want to come back to in our discussion here toward the end, which is to me, the most exciting part, is the way that the interaction with best in class partners is going very different than it has been. And I think a very exciting, exciting space.
Jonathan Feldman
Definitely. I think the important point is we didn't rush to invest last year. We saw a lot of opportunities. We were extremely patient. We said no to a lot of things, but when we saw something we liked, we acted with conviction. And I think that has made for a really exciting execution for us.
Kevin Grundy
And it took time. Didn't it?
Jonathan Feldman
Absolutely. I'm not surprised that we've actually allocated all of our dry powder through 2024. But I think one of the lessons is that it was a difficult market to transact in.
Kevin Grundy
We started a lot of these conversations at the end of 2023 and into the first half of 2024, and it takes 6 to 9 months to bring these things to a conclusion. One of the things that was important about the discipline here is that we stuck to our conviction themes. If you look across what Invesco Real Estate's high conviction areas are for Europe, and you compare that to where we were executing and the value add program, it's right on top of each other, a perfect match.
Richard Chambers
If you go back to our playbook in 2023 and what we were really looking for, we were certainly focused on logistics and particular subsets of logistics. We liked living and particularly student housing, and we were interested in ESG brown to green momentum. And the real target for us, I think, was London and central London because of regulation and momentum in that space. And if you look back now and what we've actually done, we've been active in all of those spaces, and particularly within logistics, if you think about the way we've accessed that, I think that's been interesting. We've got different themes in different markets. In Germany, we're doing urban logistics development in great locations. In the UK, we've moved to multi-let industrial. So more income focused. We've got a really interesting idea that we're executing on, which is around sustainable logistics sites that might come forward for powered land initiatives, which then moves towards the data centre space. And so I think, within that whole logistics bracket, we've been really granular and interested in different subsets, in different markets, and we've been able to execute on all of those things.
Kevin Grundy
And if we if we focus on logistics just for a moment, if you look at all of the activity that we've had, about 60% of it was in the logistics space, which makes sense because, you know, in our view, the fundamentals there are still very strong. And yet we've had a repricing. And what I really like about it, I like the fact that we've we're accessing different kinds of subsectors within logistics. But I also like the fact that we're thinking about it creatively, creatively in terms of structure. So one of our investments is mezzanine. One of them is a well thought out joint venture structure in the traditional sense. And then two of them are actually platform investments. So we're approaching these things from every different angle. And I think what it really shows is the power of flexibility and structuring in this kind of market. I mean, the way things that were coming in the door over the last period of time has been very different than the way that they left the door when we've structured them and completed the deals. And it's not just logistics, it's we've been very active in purpose built student housing as well.
Jonathan Feldman
We really like student housing. I think each market is a little bit different and has a different story, but fundamentally all the markets we're looking at are very much undersupplied, and we are disciplined about how we execute. We've already acquired in the UK, France and Spain, and the focus has been strong university markets, broad demand and providing quality space rather than luxury space to really hit that largest part of the demand curve. That's been our focus and what's been really exciting is the structures we're going into. They've traditionally been kind of forward funding structures that core capital have been in, but with core capital out of the market, we've been able to enter in those defensive sectors, but just repriced for value add returns.
Kevin Grundy
And you mentioned some of the countries that we’re active in, I think the way the countries are playing out in the early days for us here in the value add program is quite interesting and it's different than it has been in the past, isn't it?
Jonathan Feldman
I think it's fair to say that the UK and Germany have always been difficult for us to access just because of the amount of capital chasing opportunities there, and that that has changed this time. We're very much active in both countries.
Kevin Grundy
I did say in the beginning that I wanted to return to this exciting point about the way we interact with partners and how much that has changed and my perception on that. And Richard, you can help with this as well, is that we're moving from an environment where partner relationships were more transactional, the one off deal where we are the right people to be working together to, to a real business building relationship, which has which has benefits for both sides. And we're seeing a lot more of that, aren't we?
Richard Chambers
And I think, we've had the benefit of building up relationships with a whole range of partners over Europe for many, many years now. And a lot of those partners have struggled in the last two years because the capital partners they traditionally had have all dried up, and they've got great teams ready to execute there. There are great opportunities in their markets, but they just haven't been able to access them. So we've approached that very much with the mindset of, let's think about our key themes that we want to execute on, and then let's go to the people we know best and that we really believe in those management teams and partner up in a really holistic way, like, let's build a business together. I think it's a much more equitable relationship. And we are getting the benefit of vertically integrated teams within the themes that we like on a repeat basis in terms of executing on real estate that we like, but also with the benefit for our investors having participation in those businesses as they grow and succeed for no cost. It’s a different dynamic. And I think it's a really healthy dynamic. So it's been really exciting to see that evolve over the last 12 months.
Kevin Grundy
These positions with these partners are owned within the program. It gives you the benefit of exclusivity on pipeline, exclusivity on that talent, and also better economics and potential upside as well. Now, the one thing that we haven't mentioned yet in that regard is that it also opens up the door to a lot of co-invest opportunities. And if you know, we've talked about this in the past, that investors who are particularly keen on a certain sub-theme that we like can dial up exposure to that theme within the program by participating in co-invest. And if you look across the co-invest opportunities that we are working on at the moment, it's in all of those high conviction areas. It's in the logistics space, multi-let industrial, student housing, and in brown-to-green office in London.
Kevin Grundy
Every single one of those through one of these partner relationships has a co-investment opportunity linked to it. I think that's a powerful thing.
Richard Chambers
Absolutely.
Kevin Grundy
It's been a very busy end of the year and really throughout 2024. For us, it's looking like it's going to be the same in 2025. Really exciting time to be active and to draw upon all of our experience. I think really what we should do is probably get back to work.
[Disclaimers – Risks and important information]
Important information
This marketing communication is exclusively for use by Professional Investors in Continental Europe as defined below, for Qualified Clients/Sophisticated Investors in Israel, for Professional Clients in Dubai, Ireland and the UK, for Sophisticated or Professional Investors in Australia, for Institutional Investors in the United States, for Institutional Investors in Singapore, for Professional Investors in Hong Kong and for Wholesale Investors (as defined in the Financial Markets Conduct Act) in New Zealand. In Canada, this communication is intended only for investors who are (i) Accredited Investors, and (ii) Permitted Clients, as defined under National Instrument 45-106 and National Instrument 31-103, respectively. It is not intended for and should not be distributed to, or relied upon by, the public or retail investors. Investors should read the legal documents prior to investing. Please do not redistribute this document.
For the distribution of this communication, Continental Europe is defined as Austria, Belgium, Croatia, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Italy, Luxembourg, Netherlands, Norway, Slovakia, Spain, Sweden and Switzerland.
Data as at 31 December 2024, unless otherwise stated. By accepting this material, you consent to communicate with us in English, unless you inform us otherwise. Views and opinions are based on current market conditions and are subject to change.
This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.
All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This should not be relied upon as the sole factor in an investment making decision. As with all investments there are associated inherent risks. Investors should consult a financial professional before making any investment decisions if they are uncertain whether an investment is suitable for them. Please obtain and review all financial material carefully before investing.
Further information on our products is available using the contact details shown.
Australia
This document has been prepared only for those persons to whom Invesco has provided it. It should not be relied upon by anyone else. Information contained in this document may not have been prepared or tailored for an Australian audience and does not constitute an offer of a financial product in Australia. You may only reproduce, circulate and use this document (or any part of it) with the consent of Invesco.
The information in this document has been prepared without taking into account any investor’s investment objectives, financial situation or particular needs. Before acting on the information the investor should consider its appropriateness having regard to their investment objectives, financial situation and needs.
You should note that this information:
· may contain references to dollar amounts which are not Australian dollars;
· may contain financial information which is not prepared in accordance with Australian law or practices;
· may not address risks associated with investment in foreign currency denominated investments; and
· does not address Australian tax issues.
Hong Kong
This document is distributed, circulated or issued to professional investors (as defined in the Hong Kong Securities and Futures Ordinance (the “SFO”) and any rules made under the SFO or as otherwise permitted by the SFO only in Hong Kong.
Singapore
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This document is provided to Institutional Investors only in Singapore. It may not be circulated or distributed, whether directly or indirectly, to persons in Singapore other than to an institutional investor under Section 304 of the Securities and Futures Act, Chapter 289 of Singapore (the “SFA”) or otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.
New Zealand
This document is issued only to wholesale investors (as defined in the Financial Markets Conduct Act) in New Zealand to whom disclosure is not required under Part 3 of the Financial Markets Conduct Act. This document has been prepared only for those persons to whom it has been provided by Invesco. It should not be relied upon by anyone else and must not be distributed to members of the public in New Zealand. Information contained in this document may not have been prepared or tailored for a New Zealand audience. You may only reproduce, circulate and use this document (or any part of it) with the consent of Invesco. This document does not constitute and should not be construed as an offer of, invitation or proposal to make an offer for, recommendation to apply for, an opinion or guidance on Interests to members of the public in New Zealand. Applications or any requests for information from persons who are members of the public in New Zealand will not be accepted.
Restrictions on Distribution
This information is being delivered to the types of investors listed on the cover in order to assist them in determining whether they have an interest in the type of strategy described herein. It has been prepared solely for information purposes. The distribution and offering of the strategy in certain jurisdictions may be restricted by law. Persons into whose possession this document may come are required to inform themselves about and to comply with any relevant restrictions.
This does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation.
This document is issued
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
GL4108303
Invesco Real Estate’s value-add team discusses its approach in a challenging market highlighting a disciplined, local team-based execution programme and strategic investments in sectors like logistics and living.
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*Source: GRESB, as at 2023. As real estate investors and property owners utilize ESG reporting, the Global Real Estate Sustainability Benchmark (GRESB) provides transparency and consistency for related standards and reporting.
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.
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 realized.
All data is provided as at 30 June 2024, unless otherwise stated.
By accepting this material, you consent to communicate with us in English, unless you inform us otherwise. This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. Views and opinions are based on current market conditions and are subject to change. Further information on our products is available using the contact details shown.
EMEA3794450/2024
