The Raging Bull Awards ceremony held in Cape Town this week saw global asset manager, Schroders walk away with the award for Best Offshore Global Real Estate General Fund. In the midst of a struggling local property market, the award serves as a further reminder for local investors of the opportunities which are available to diversify their property portfolios offshore.
“With the SA listed property index trading at seven-year lows – and indicator of the broader struggle in the local sector, investors continue to consider diversifying their property exposure into global real estate. When doing so it is important that they challenge the way they traditionally look at investment opportunities in the asset class,” said Doug Abbott, Schroders country head in South Africa. Abbott believes that the unique Global Cities approach adopted by Schroders has contributed to the asset managers’ offshore real estate success.
“The Schroders Global Cities index uses a number of factors to identify the most economically-vibrant cities across the world. Cities are then ranked in the index to provide a view of where some of the biggest global real estate opportunities lie,” he explains.
Abbott adds that Global Cities are major centres of job creation, and notes this as a critical ingredient for real estate investment. “Industries are now increasingly clustering together in cities with universities that attract talented students. The logic is that these students will often stay and work in the same cities or create companies after graduation. In a rapidly urbanising world, the pull towards cities that offer employment growth and a wide range of amenities, translates to higher income return for investors and in time a higher capital value.”
Speaking at the award ceremony – an annual highlight for the investment industry, Abbott says that the recognition is a nod to Schroders’ global cities approach and excellent real estate management team.
“Our real estate expertise stretches back to 1971 and since then has been consistently recognised by the real estate industry for its outstanding performance. To be recognised by the Raging Bull awards is an added honour,” he concludes.