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​​​​Alternative Investment Seminar 2014​​​

Our annual Alternative Investment breakfast seminar took place on Tuesday 11 November at The Soho Hotel. Our experts on the alternative sector, plus three guest speakers Mark Hafner - Senior Managing Director, Greystar, Mike Adams - Chief Executive, Octopus Healthcare and Kris McPhail – Director, M&G Real Estate, presented to an audience of 76 clients and contacts.

Jon Neale, Head of UK Research, presented the findings of the annual JLL Alternative Investment survey, which revealed that investors are planning to increase their allocation to alternative investments by 9% over the next five years.

The main conclusions drawn from the seminar were:

  • 90% of investors are looking to increase their exposure to alternative sectors over the next five years

  • Significant rise in capital flows into alternative sectors, highlighting it becoming more institutionally acceptable

  • On average, investors are looking to increase their allocation to alternatives by 9%

  • Alternative investment volumes are projected to grow to 30% of all UK property transactions by 2019

  • Alternative investment volumes are projected to grow from £10bn per annum in 2014 to £20bn by 2019

  • Student housing, Hotels and Healthcare are the sectors investors are most keen to  increase their holdings in

  • Long term stable income streams, higher returns compared to conventional Real Estate and exposure to growth sectors of the economy are some of the main benefits mentioned

  • Sector expertise, transparency and lack of quality stock are some of the main challenges facing the alternatives space

Quotes from our Experts 

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Jon Neale

Head of Research, UK

"Our survey demonstrates that the so-called 'alternative property sectors' will continue to become a more significant and established part of the portfolios of investors of all types. Increasing competition for prime office and retail assets, continued yield compression and the need to diversify and match liabilities are driving this shift. They are also more tied in to demographic shifts and the associated withdrawal of the state from many public services - even areas such as student accommodation are ultimately about parental wealth. This suggests that all these sectors have huge long-term potential for growth."
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Philip Hillman

Chair, Alternatives

"It is becoming increasingly clear that alternatives are a high priority for institutional investors. There has been exceptional activity in the market over the past 12 months with strong indications of a further increase in activity across alternative sectors.

Of particular note is the Student Housing sector where there are currently circa £3bn of transactions likely to complete by Q2 2015."