Savills Investment Management

As Ramadan comes to an end, we wish all our clients, colleagues, friends and family a joyous Eid-al-Fitr.

Apwinder Foster discusses market trends, investor preferences and how Savills IM is positioned to support investors in a changing sector. 🔹  We have seen an uptick in investor interest in the real estate market as we start to see some certainty coming through. 🔹  Geopolitics is a key concern for investors, particularly the US and its impact on European markets. 🔹  There is firm interest in sectors where we're seeing long term structural demand, such as the living sectors, multifamily, PBSA, single family housing, and logistics. 🔹  Data centres are emerging as a very strong theme and we're starting to see the re-emergence of the office sector. 🔹  Investors are considering pooled fund investments again, which wasn't the case this time last year. But even within the pooled funds space, interest is largely in the closed-ended part of the market rather than open-ended structures. 🔹   Investors still want the right in three to four years’ time to be able to pause and reassess where the market's moved to, and then select whether to go again in specific sectors. Savills IM proposition 🔹 Throughout this real estate downturn, we've tried to focus on the parts of the real estate market that we really believe in and investors are responding really well to that. 🔹 We're active in sectors where we see long term structural demand, but also targeting more value add tactical plays during this part of the cycle. 🔹 We’re aiming to provide investors with the option to play in parts of the risk curve for the long term - which is usually core and core plus strategies - or make more of a value add move in something like UK single family housing development. #RealEstateInvestment #InvestorTrends #MarketInsights #AlternativeInvestments #CRE #InvestmentStrategy #RealEstateTrends #CapitalMarkets #PassiveIncome #InvestmentManagement #RealEstateOpportunities #PrivateMarkets

Our Simply Affordable Homes fund has acquired its second portfolio of homes! The fund has acquired 94 affordable rental and shared ownership homes in Bicester, Oxfordshire, from a local developer.  The portfolio forms part of the award-winning Heyford Park masterplan, which includes plans to construct over 6,000 homes, 50,000 sqm of commercial space, a new railway station, school, and other key infrastructure. The major Oxfordshire regeneration project is expected to create over 3,000 new jobs and other socio-economic benefits for the local area.   https://lnkd.in/ezFcRTZa Dominic Curtis, Fund Manager for the Simply Affordable Homes fund, Savills IM, commented: "This is another significant step in the Fund’s central mission, which is to address the UK's housing challenges by delivering sustainable, affordable housing through our high-quality Registered Provider. The industry recognises that public-private collaboration is essential if we are to address supply-demand imbalances that are acutely felt in the affordable market, and the role of institutional capital within this.” Read more here: https://lnkd.in/egYC9M3Z #Affordable #Homes #Living #RealEstate #RealEstateInvestment #SocialImpact #ESG   

🏆 Savills IM’s Cathedral Hill Industrial Estate has won ‘Project of the Year – Portfolio Workspaces’ in the 2025 Chartered Institution of Building Services Engineers (CIBSE) awards.  The judges praised Cathedral Hill - located in Guildford, UK - as an outstanding example of how regeneration can benefit businesses and the environment. The deep retrofit of Cathedral Hill not only achieved operational net zero, but also led to an increase in rental value.  The project entailed:  🔹 The £10.6m refurbishment of 13 units targeting on a mix of building fabric improvements and services upgrades.  🔹The project’s sustainable sourcing policy focused on the reuse of materials – for example, stone masonry waste used in gabion walls and existing concrete floors repolished or screeded.  🔹Enhanced insulation provides additional environmental control, user comfort and acoustic performance.  🔹Each unit now has access to solar photovoltaics and Tesla Powerwall batteries to store surplus energy.  🔹Following a services audit, all the gas space and water heating units, bar one, were replaced with air source heat pumps, point-of-use water heaters and panel heaters.  🔹Glazing in mezzanine office spaces and twin-skinned polycarbonate roof lighting also provide occupants with good daylighting.  🔹The project has a two-year Soft Landings period to manage integration of new installations and ensure seamless operation for new and existing tenants.   🔹Prior to the project the site was partially unoccupied and under rented. Now, there is a waiting list for tenants and rental value has more than doubled. For more detail on the award please visit: https://lnkd.in/eJ8AVxUB  Congratulations to the team Chris Poole Karl Broome Andrew Pratt SRE Ltd Savills and HBS Construct #RealEstate #RealEstateInvestment #Logistics #ESG #Regeneration #Sustainability #NetZero 

🌍 Michael Neal, our Global CIO, was at MIPIM – reflecting on key takeaways A few days back from what was a very wet (and quite frankly pretty cold!) MIPIM, and it’s time to reflect on some key takeaways. Spoiler alert … I left with my glass half full! 🔷 Real Estate is a people business. In private markets, there’s no substitute for spending quality time with clients, peers, stakeholders, consultants, and operators. MIPIM provides a place to discuss the challenges and opportunities we face. The message I received from everyone I connected with was clear: it’s time to move on and get business concluded. There’s a strong emphasis on leaving behind negative sentiment tied to rising capital costs. What has at times felt like a "doom loop" for investors is now filled with excitement and eagerness for opportunities ahead. 🔷 It’s a cyclically attractive time to invest. Despite the re-anchoring of risk-free rates in Europe following Germany’s "whatever it takes" moment, the consensus is that real estate valuations have largely troughed, credit spreads have normalised, capital markets are recovering, and occupier markets are in good health. Rental growth is also surprising on the upside! This is not just sector-specific; from resilient living and logistics to prime office and retail (particularly repositioning strategies), the market is filled with opportunity. There’s news of assets going under offer, well-bid deals, and, importantly, more capital flowing across the risk spectrum. 🔷 Focus on long-term objectives – look through the short-term noise. Real estate isn’t a short-cycle play. While timing can deliver exceptional outcomes, long-term success is built on structural themes that rarely change. The big four ‘D’s – decarbonisation, demographics, deglobalisation, and digitalisation – are here to stay. Short-term volatility and geopolitical noise often accelerate these trends. The shift from a hydrocarbon-driven economy to a green one will outlast current political administrations. Investors I spoke to remain committed to net-zero carbon objectives and long-term restorative ambitions. Let’s stay focused on these goals – real estate has a vital role to play. 🔷 Opportunities in both equity and debt. It’s a delight to work for a platform that offers solutions across both! Whatever the risk appetite, our industry finds creative ways to deliver. This is one of those rare moments when both debt and real estate equity opportunities look attractive. To round up, this was a MIPIM where I left with my glass of rosé half full…and by the way, rosé in Cannes tastes amazing, whatever the weather! Thanks to all those I spent time with and to the incredible Savills team who looked after our clients, contacts, and the Savills IM team! #MIPIM2025 #RealEstate #InvestmentOpportunities #Sustainability #NetZero #Innovation #FutureOfRealEstate

We are at the LGC Investment Seminar on  27th and 28th March at Carden Park, Cheshire! Drop by the Savills IM table or see our speakers in action. Andrew Dreaneen, our Head of Natural Capital will be speaking at Workshop H on Wednesday 27 March at 2:25pm: Investing in Natural Capital – sustainable land management for a resilient future. We look forward to discussing why we need a significant transition of the UK’s rural land sector and how the sector can as a diversifier in for institutional portfolios. Lucy Williams, our Head of Client Capital UK, will be taking part in the ‘Birds of a feather’ discussion group on Wednesday 27 March at 4pm. Join the conversation on LGPS investment pools and discussion around what is required to be a “best practice pool” and the realistic time scales to achieve this goal.   In the meantime, you can read our article with the Local Government Chronicle on why affordable housing and natural capital offer compelling real asset investment cases here: https://lnkd.in/e_PUrVWK Lucy Williams Victoria Morrison @Dominic Curtis Andrew Dreaneen #savillsinvestmentmanagement #LGPS #realestate #naturalcapital #investing #ruralinvesting #farmland #LGC

European PBSA 201: Finding Distinction How do investors know which university location is right for them? The second paper in our European PBSA research trilogy showcases our framework for understanding the relative merits of European PBSA markets and determining favourable PBSA investment locations and assets. Read about our three-step CLAS framework:    Step I - Country   Step II - Location   Step III - Asset Specific  Interested? Click to read our paper https://lnkd.in/eyhMvSnT Also see our European PBSA 101: Top of the Class paper and look out for our upcoming paper which explores the issue of gross-to-net leakage and why this is an important determinant for a successful PBSA portfolio.  #PBSA #StudentAccommodation #RealEstate #Europe #Living #RealEstateInvesting 

We're at MIPIM!  Join us at the world's leading real estate event from 10-14 March. We’re looking forward to another great week connecting with peers and clients to discuss all things real estate. #mipim2025 #realestate #investing #mipim Vincenzo Altieri Patrick Au Yeung Joey Aoun Peter Broström Evert Castelein Apwinder Foster Giovanni Trespidi Marcel Fleminks Emily Hamilton Steven Gower Jon Crossfield Lisen Heijbel Edgar Hertog Jan Willem Vis Tim Ulrich Maurice Kelly Cathy Keir Massimo Morlotti Michael Neal Fernando Ramirez de Haro Pierluigi Solitario Laurent Vouin Graham Fasham Mark Gibbard Trevor Homes

We are proud supporters of International Women's Day. This March, our Diversity and Inclusion Gender group are organising walks and events across several of our Savills Investment Management offices, themed around inspirational women, equality for women in the workplace and personal safety. We will continue to deliver initiatives centered around our commitment to supporting equity and inclusion in all forms and, ultimately, #AccelerateAction #IWD2025 #inclusion #diversityandinclusion #womeninrealestate #esg #property #sustainability #AccelerateAction

𝐅𝐢𝐧𝐚𝐥 𝐂𝐚𝐥𝐥: 𝐎𝐮𝐫 𝐄𝐮𝐫𝐨𝐩𝐞𝐚𝐧 𝐎𝐩𝐑𝐄 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐒𝐞𝐧𝐭𝐢𝐦𝐞𝐧𝐭 𝐒𝐮𝐫𝐯𝐞𝐲 𝐜𝐥𝐨𝐬𝐞𝐬 𝐨𝐧 𝐌𝐨𝐧𝐝𝐚𝐲 https://lnkd.in/eiF_kpez Prepared by Savills Research and Savills Investment Management, our survey explores investor appetite for and trends in the operational real estate (#OpRE) sectors across the UK and Europe. Within OpRE we are including any 𝐑𝐞𝐬𝐢𝐝𝐞𝐧𝐭𝐢𝐚𝐥 segment that is investible, as well as 𝐇𝐨𝐬𝐩𝐢𝐭𝐚𝐥𝐢𝐭𝐲 and 𝐒𝐞𝐥𝐟 𝐒𝐭𝐨𝐫𝐚𝐠𝐞.   𝐀𝐥𝐥 𝐫𝐞𝐬𝐩𝐨𝐧𝐬𝐞𝐬 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚𝐠𝐠𝐫𝐞𝐠𝐚𝐭𝐞𝐝, 𝐚𝐧𝐝 𝐫𝐞𝐬𝐩𝐨𝐧𝐝𝐞𝐧𝐭𝐬 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐬𝐞𝐧𝐭 𝐚𝐧 𝐞𝐚𝐫𝐥𝐲 𝐜𝐨𝐩𝐲 𝐨𝐟 𝐭𝐡𝐞 𝐫𝐞𝐬𝐮𝐥𝐭𝐬 𝐫𝐞𝐩𝐨𝐫𝐭.    The survey closes on Monday 10 March 2025.    For more information, contact: Richard Valentine-Selsey #Survey #OCM #Savills #Investor #RealEstate #Survey #Residential #Hospitality #SavillsIM