Our approach to long income real estate

We acquire freeholds and long leaseholds on high-quality European real estate and structure investments to derive maximum value from the contracted income stream. By investing with conviction and discipline, we aim to deliver consistent outcomes and performance, and look to partner with clients to meet their investment goals.

Drawing on our wide resources, we use on-the-ground expertise to enhance operational value over the course of the assets’ life and aim to generate secure income from tenants with high credit quality. We also integrate environmental, social and governance factors in a non-binding way throughout the investment lifecycle, from decision-making to management and reporting.

Potential benefits of long income real estate

Bringing more clarity for investors seeking long-dated cash flows.

Long-dated liability matching

Through these long-term assets, investors can benefit from a closer match to their liability and duration needs.

Predictable cash flows

Quality tenants on long leases can deliver strong long-term cash flows.

Inflation hedge

Rents can be linked to the Retail Price Index or Consumer Price Index, or subject to fixed uplifts.

Diversification

The risk profile of long-lease property is different from traditional real estate allowing investors to access varied types of revenue.

Lower risk

Deriving most of the value from underlying leases means less exposure to changing capital values.

Illiquidity premia

Attractive yields relative to comparable asset classes.

Real estate long income strategies

European Real Estate Long Income Fund (E-RELI)

This strategy aims to deliver secure and predicatable cash flows from predominantly inflation-linked leases with secure contractual lease terms of at least 15 years. The strategy has a focus on the least volatile European markets and investment grade tenant covenants.

Aviva Investors Lime Property Fund

This strategy looks to acquire or develop assets in traditional and alternative sectors. The strategy targets strong tenant covenants and leases in excess of 20 years which will be accretive to the key metrics of the existing portolfio.

Aviva Investors Lime Property Fund – 20 year anniversary fund update

The Aviva Investors long income real estate team sit down with Heather Brown, Head of UK Institutional, to discuss how the market has evolved over the past 20 years, how responsible investment considerations influence strategy, as well as the outlook for Lime.

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Transcript  for video Lime Property Fund - 20th anniversary

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Key risks of long income real estate

Investment risk

The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency and exchange rates. Investors may not get back the original amount invested.

Return profile

Long-lease assets are expected to be comparatively resilient at stress points, but may lag when traditional real estate markets are booming.

Real estate risk

Where funds are invested in real estate, investors may not be able to redeem any units in the fund when they want because real estate assets may not always be readily saleable. If this is the case, we may defer a request to switch or cash in shares or units.

Valuation risk

Certain assets held in the fund could, by nature, be hard to value or to sell at a desired time or at a price considered to be fair (especially in large quantities), and as a result their prices could be very volatile.

Real estate long income team

  • Renos Booth

    Head of Real Estate Long Income

  • Luke Layfield

    Head of Portfolio Management, Private Markets

  • Kris McPhail

    Real Estate Fund Manager, Director

  • Neil Gardiner

    Director, Real Estate; Fund Manager

  • Isabel Gossling

    Co-Fund Manager, E-RELI

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