Property and Infrastructure

Investment U’s David Fessler explains why investing in REITs could continue paying off handsomely.

The new year has seen brokers review their outlook for the REIT sector, with the reviews generating a number of rating changes.

Lend Lease has launched a UK Infrastructure Fund and brokers see this as good news for the company’s asset recycling operations.

Following underperformance against the broader market value appears to be emerging in the Australian REIT sector, so brokers have outlined some of their preferences.

A consumer survey by Mortgage Choice shows property remains a popular investment in Australia, though affordability is an issue and household spending is being more closely watched.

Private equity player Blackstone suggests there is value on offer in the Australian market and Moelis and Co has offered a list of companies it sees as attractive to such buyers.

Brokers suggest the conditional offer for ING Industrial from Goodman Group and a trio of major funds has positive implications for the wider Australian REIT sector.

The Australian housing market is not in a bubble, argues Westpac Bank.

National Australia Bank’s latest quarterly Australian Commercial Property Survey showed some improvement in the market and expectations of further gains over the next 12 months.

ANZ Bank estimates Australia needs invest $600 billion in infrastructure over the next six years, while in Asia the estimate is US$13 trillion over the next decade.