In this insight, we focus on Commercial Ground Rents (CGR) – a private market asset class that satisfies many of the investment needs revealed by life insurers in our survey. UK life insurers have invested over £500 million into CGRs over 2023 and in our experience, interest in this asset class is accelerating. We explore why European insurers should consider investing in CGRs. We do this by introducing the asset class and discussing characteristics that are attractive to insurers.
Commercial Ground Rents (‘CGR’) provide investors with index linked cashflows that have bond-like characteristics and offer property owners an attractive form of long-term finance. The parties to a CGR are akin to a borrower and lender, although the relationship is governed by a lease not a loan.
This secure income made simple guide will show why secure income can play a role in helping pension investors achieve their investment objectives and that now could be an excellent time to capture the opportunity at an attractive price.
This insight looks at why investment in greenfield projects in the UK is important in the renewable energy transition.
We asked European pension fund professionals, who collectively oversee €324 billion in assets, questions about their investments.
