Secure income real assets remain attractive to investors seeking long-dated, inflation-linked income to meet liabilities and diversify their portfolios. The prospect of interest rates falling further from their recent highs is supportive of valuations albeit tempered by economic uncertainty.
The growing European long income property market provides a good source of such assets, with greater than €1bn of pipeline to a diversified set of sectors and pan European geographies.
Over the quarter, the nominal gilt curve has shifted down by around 25 basis points across the medium to longer maturities.
A broadly parallel upward shift of approximately 20 basis points is evident across the nominal gilts curve, with yields reaching multi-year highs.
AlphaReal, the specialist real assets investment manager, is pleased to announce the acquisition of a fully consented 12MWp solar development, located near Arbroath, Scotland.
The short-term nominal curve shows a decrease in yields for tenors under 20 years, while remaining relatively flat at the longer end of the curve.