Commercial Ground Rents

Commercial
Ground Rents

AlphaReal is a market leader in commercial ground rents in the UK and Europe, and has deployed over £2 billion in this asset class since 2015.

AlphaReal has raised over £2 billion from UK and European pension funds and insurers for investment in long-income ground rents and social infrastructure through funds and direct mandates. These assets all have long term cash flows with substantial inflation indexation.

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The key benefits of commercial ground rents to investors are

Inflation protection

Commercial ground rents (CGRs) provide very long dated cashflows that are contractually inflation-linked.

Security of cashflows

The cashflows are highly secured, achieved through significant over collateralisation of income and capital.

ESG benefits

CGRs can provide strong and quantifiable ESG benefits. 45% of AlphaReal’s CGR AUM is invested in social infrastructure assets that provide positive societal benefits.

“AlphaReal is the market leader in commercial ground rents in the UK with a strong track record of delivering consistent inflation linked returns and robust capital deployment.”

Phil Triggs

Tri-Borough Director of Treasury and Pensions at Westminster City Council

AlphaReal is one of the largest and most experienced managers of CGRs in the UK, with the largest and most diversified fund. The AlphaReal Long Income team has deep experience in the origination and credit structuring of long income investments and has extensive knowledge of pension fund de-risking and Cashflow Driven Investing.

Our investment strategy is characterised by

Meeting investor needs

By understanding both the short and long term requirements of our investors, we are able to develop investment strategies to meet our clients’ needs.

Proactive origination

We work directly with owners, acquirers and developers of operational real estate and their advisers.

Assessment of
risk & reward