Our purpose is to build prosperity by investing in resilient real assets. Our vision is to be a trusted investment manager, respected for our expertise in restorative real estate investment enabling people, communities and eco-systems to thrive.
We are a dedicated real estate and real-estate debt specialist managing €23.8bn on behalf of institutional investors globally.
Our global platform of 16 locations enables us to combine a truly global perspective with local expertise to offer investors a range of compelling strategies.
The firm has over 30 years of experience delivering real estate strategies for investors, with over 400 staff dedicated to positive client outcomes.
Our strategies span the office, logistics & industrial, retail, living and debt sectors, and have been designed with the flexibility to meet the needs of a wide range of investors.
Responsible investment is integrated into our investment-management process to ensure that responsible investment risks and opportunities are not siloed, but recognised and acted upon throughout our business, as well as communicated to investors.
Investment principles & strategy
Our investment process is crucial to ensuring the successful and consistent implementation of our investment philosophy globally. Our process seeks to:
Identify risks and opportunities at each stage of the process, from stock selection and structuring to ongoing asset management and eventual sales.
Analyse assets and portfolios against fund or client risk-return profiles and investment objectives on a continual basis for constant monitoring.
Incorporate our responsible investment policy, as improving the social impact of investments can benefit both investors and society.
Utilise our dedicated team of in-house researchers to add significant value at the macro and micro levels across both asset and portfolio lifespans.
Sector forecasts
INDUSTRIAL: The logistics sector proved its resilience through macro-economic cycles. Structural changes – consumer behaviour, digitalisation, ESG requirements and supply chain reconfiguring – in combination with supply constraints in key logistics hubs will continue to drive the demand for modern space in the long run. This creates a high level of income resilience relative to other sectors, including sound rental growth prospects. Our main investment focus relates to state-of-the art distribution centres in strategic logistics hubs in Europe, and modern urban logistics and industrial schemes in dominant conurbations, where additional value can be created by improving the present and largely obsolete building stock.
OFFICE: Increased working from home and ESG awareness are structurally changing the office sector, including the operational and obsolescence risks around them. This will create a significant divergence in future performance. In the near term, a cyclical downturn will likely affect tenant demand, but good quality, flexible, well-located offices with strong ESG credentials and amenities – favoured by tenants – should prove more resilient. Longer-term office performance is anticipated to be dominated by the ability to meet tenant requirements around quality, location and sustainability considerations. While there are potential refurbishment opportunities for well-located secondary buildings in low-vacancy markets, poorer-quality buildings which are not cost effective to improve are expected to suffer the most.
RESIDENTIAL: European multifamily fundamentals have proven resilient, particularly during periods of economic dislocation, reminding investors of the essential nature of housing. Shifting socio-demographic trends, acute undersupply and rising barriers to ownership are increasing demand for modern, efficient and affordable rental housing in many urban and peri-urban locations. Over the medium-to-long term, the multifamily sector is expected to deliver real rental value growth, stable income returns as well as portfolio diversification for investors. Increasing energy-efficiency standards, together with the challenge to deliver more affordable homes, will create opportunities for long-term capital. Favourable demographics and supportive demand/ supply imbalances also provide opportunities in the purpose-built student accommodation and senior housing sectors.
RETAIL: The death of retail is an oversimplification of a more nuanced situation and risks investors overlooking strong income-producing opportunities. Although the sector will need to contend with ongoing growth in online shopping, the COVID-19 pandemic and subsequent cost-of-living crisis has reinforced the defensive qualities of certain parts of the market. Namely grocery and discount- and convenience-led retail parks. Grocery retail benefits from its greater non-discretionary spend and long-lease structures. Discount and convenience retail is underpinned by consumers seeking greater value for money, while lower rents and surcharges than other retail formats make retail parks increasingly attractive to retailers.
Performance verification
Our historic target is to exceed outperformance of agreed benchmarks or targets in 65% of our products (by AUM) on a 3-year and 5-year static look back.
COMPLIANCE STATEMENT
This document is for information purposes only and has been prepared by Savills Investment Management, which is the name used to represent Savills Investment Management LLP and its subsidiaries. Savills Investment Management LLP is authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom under Firm Reference Number 615368. Registered office is 33 Margaret Street, London W1G 0JD. Property is not a financial Instrument as defined by the Market in Financial Instrument Directive under European regulation; consequently, the direct investment into and management of property is not regulated by the FCA.
Any funds, products and services described may not be available in all countries, and nothing contained herein constitutes an offer or solicitation to anyone in any jurisdiction where such an offer is not lawful or to anyone to whom it is unlawful to make such an offer or solicitation.
Any reference made to specific investments is purely for the purposes of illustration and should not be construed as a recommendation. Savills Investment Management will only provide information on its investment products and services and does not provide other investment advice. Whilst Savills Investment Management believe that the information is correct at the date of publication, no warranty or representation is given to this effect and no responsibility can be accepted by Savills Investment Management to any intermediaries or end users for any action taken based on the information.
The value of property is generally a matter of a valuer’s opinion rather than fact. Please remember that past performance is not necessarily a guide to future performance. The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and investors may not get back the amount originally invested. Tax assumptions may change if the law changes, and independent advice should be sought. Property can be difficult to sell, and it may be difficult to realise your investment when you want to.
