{"id":2043,"date":"2016-10-06T13:41:15","date_gmt":"2016-10-06T13:41:15","guid":{"rendered":"http:\/\/poseidon-gp.com\/property\/?p=2043"},"modified":"2016-10-06T13:41:15","modified_gmt":"2016-10-06T13:41:15","slug":"investors-battle-low-yield-environment","status":"publish","type":"post","link":"https:\/\/poseidon-gp.com\/property\/investors-battle-low-yield-environment\/","title":{"rendered":"Investors battle low-yield environment"},"content":{"rendered":"<p class=\"p1\"><span class=\"s1\">EXPO REAL 2016:\u00a0Investors should focus on asset locations and rent potential as \u201cprices are out of control\u201d, a panel at Expo Real heard today.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">In a discussion about working through a low-yield environment, Stefan Ziegler, chief operating officer of KGAL, said: \u201cPrices are out of control to a certain extent so what you have to do is protect your investors by buying assets where you have a rent level that you can achieve even in a crisis.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">\u201cWhat we\u2019re doing now is buying location and buying decent rents. It\u2019s crisis protection mode.\u201d<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The comments followed a presentation by Tom Leahy, director of market analysis at Real Capital Analytics, where he showed that yields had fallen across Europe since 2014.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Yields in London had seen the biggest fall in that period, plummeting to under 5%.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Annette Kroger, chief executive of Allianz Real Estate Germany, said that her company\u2019s strategy in a low-yield environment is balancing the portfolio between core and value-add assets.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">She said: \u201cIt\u2019s about having a combination of core, where you see some growth potential in the market and diversifying it with other products where you see a bit more yield.\u201d<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Kroger\u00a0added that with interest rates at record lows, real estate offers attractive yields, putting the sector at the heart of the insurance company\u2019s strategy despite rising prices.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The panel agreed that the low-yield environment is unlikely to change in the foreseeable future although none of the speakers wanted to call it \u201cthe new normal\u201d.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>EXPO REAL 2016:\u00a0Investors should focus on asset locations and rent potential as \u201cprices are out of control\u201d, a panel at Expo Real heard today. In a discussion about working through a low-yield environment, Stefan Ziegler, chief operating officer of KGAL, said: \u201cPrices are out of control to a certain extent so what you have to [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,1],"tags":[],"class_list":["post-2043","post","type-post","status-publish","format-standard","hentry","category-news","category-uncategorized"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9PjAq-wX","_links":{"self":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts\/2043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/comments?post=2043"}],"version-history":[{"count":0,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts\/2043\/revisions"}],"wp:attachment":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/media?parent=2043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/categories?post=2043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/tags?post=2043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}