Invesco Real Estate (IRE), a global real estate investment manager, invests in direct property and publicly-traded real asset securities, and has a 38-year investment track record.
We are one of the largest real estate firms globally, and benefit from our exclusive focus on investment management and a performance- driven culture. Our services range from fund management, structuring and finance to acquisitions, asset management and dispositions.
IRE is a highly stable organisation, with our global senior team having an average tenure of 15 years and 27 years’ industry experience.
As the real estate investment management arm of Invesco Ltd, we have the global strength of a large organisation complemented by the expertise of our on-the-ground specialists who are active in their local markets every day.
Underpinning this local expertise is the creation of our investment strategy by our regional strategists and data analytics teams; our focus is on applied outputs, rather than theoretical research, enabling us to present our best ideas to our clients and aim to invest in the right markets, at the right time.
We have been managing separate accounts and pooled funds throughout a number of real estate market cycles and have been active but selective in our transactions programme during these periods. We believe we have the expertise to know where and when to invest and, with our network of global relationships, we can access off market direct real estate deals.
We fully understand the markets in which we invest. We have dedicated regional investment strategists and strategic analytics professionals whose work is complemented by the first-hand expertise of our on-the-ground investment professionals who are active in their local markets every day. This deep market knowledge and thought leadership is showcased in our bi-annual house views. This information feeds into all of our investment decisions and in the delivery of a strategy.
Our strategies invest in the main commercial sectors as well as hotels and multi-family/ residential (private rented sector) and across the major global real estate markets. We currently manage $85.8bn of real estate assets globally for our clients, with around 592 staff across 21 offices.
ESG & resilience
Invesco Real Estate is committed to being good stewards of the environment in a manner that is consistent with our fiduciary responsibilities to clients. As our clients increasingly place value on ESG+R issues, we have a responsibility to make ESG+R integration a priority in the way we conduct our business and sustain our investments.
We have recognised for a long time that embracing ESG+R best practices strengthens our assets’ operational efficiency and resilience and is synonymous with good asset management. Global challenges, such as the COVID -19 pandemic and climate change, have shown us that it is increasingly important to continue our proactive approach to ESG+R implementation. Invesco Real Estate understands that the societal impact of the built environment is an important factor in creating and stabilising communities and maintaining social cohesion. As such, recognition of asset quality, long-term investment strategy, and wider ESG+R considerations around the impact of the built environment on society and the natural world are factors that are considered within Invesco Real Estate’s investment process.
Our current targets include:
- 3% annual reduction in energy and emissions by 2030 from a 2018 baseline
- Net zero carbon emissions by 2050
- 1% annual reduction in water consumption
- 1% annual increase in waste diversion rate.
Investment principles & strategy
The determination of investment strategy at Invesco Real Estate is not merely a formal department; rather, it is a firm-wide commitment to a systematic evaluation process.
The focus is on applied outputs, not theoretical research. Our regional investment strategy and strategic analytics professionals are charged with regularly gathering detailed economic, demographic, real estate market and local intelligence in order to formulate well-founded opinions on underlying investment potential on a market-by-market basis for each property type. More importantly, these teams integrate top-down, long-term oriented market evaluations with the bottom-up expertise of transaction and asset management professionals.
Asset management, transactions, underwriting and investment strategy are separate areas of expertise; however, all of these disciplines contribute to the process of developing strategy based on an in-depth understanding of local markets.
The Regional Investment Strategists and Strategic Analytics teams work hand-in-hand and are responsible for leading and facilitating our ‘House View’ process. The House View combines the empirical and anecdotal evidence from each of our investment disciplines and sets forth where we see the best relative value from both a property type allocation and market selection standpoint - two very key decisions in providing strong relative returns. The Portfolio Management team then incorporates the House View into fund investment plans and is charged with implementation.
Strategic corporate development
Our global business has grown organically and through selective acquisitions since 1983. Our experts have the experience and the knowledge needed to seek to deliver investment returns in an increasingly complex environment. We believe our diversified global platform has positioned us well and has enabled us to maintain a senior staff with low turnover.
Our global network with a local presence and deep real estate market knowledge, means that we are able to cover the major real estate markets across the US, Europe and Asia Pacific with an established platform with 592 dedicated real estate staff. In addition, our strong track record of delivering returns to investors by implementing strategic and tactical strategies globally across the risk spectrum and throughout a number of real estate cycles has contributed to IRE’s steady growth over the past 38 years.
Our sole business is managing investments, working with our clients’ interests in mind and concentrating on the delivery of returns. We are not a bank, brokerage house or an insurance company, nor do we have any other real estate related businesses (such as leasing or property management) that can distract or conflict with our fiduciary responsibilities,or detract from our focus on performance.
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Property and land can be difficult to sell, so investors may not be able to sell such investments when they want to. The value of property is generally a matter of an independent valuer’s opinion and may not be realised. Real estate loans are typically non listed on regulated markets and need to be valued via the application of appropriate models (potentially applied by independent experts): this may lead to inaccurate valuations which may not be reflected into transaction prices. Changes in interest rates, rental yields and general economic conditions may result in fluctuations in the value of assets. Real estate investments are exposed to counterparty risk, which is the risk that a counterpart is unable to deal with its obligations. The manager may use derivatives (complex instruments) and bor- rowings, which may result in the asset being significantly leveraged and may result in large fluctuations in the value of the asset. Real estate investments can be exposed to new sustainability-related regulatory requirements that may negatively affect the value of those assets which are not compliant and can envisage significant costs to be invested to comply or to simply improve their sustainability profile. In addition, real estate investments can be also significantly exposed to negative economic effects stemming from climate change, natural disasters and the general preference of investors for assets with better sustainability features.