Commercial Ground Rents | An attractive asset class for European insurers

We recently commissioned a survey of European life insurance company investment professionals that collectively oversee €2.73 trillion in assets.

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.

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European Commercial Ground Rents

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.

Secure income made simple guide

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.

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