Standard Life Investments

Investment process

When it comes to examining real estate opportunities, we use a robust and repeatable process. It is underpinned by our Focus on Change philosophy, which aims to anticipate shifts in markets/asset prices before the competition. Our process contains three key elements:

  • research
  • stock selection
  • asset management.

Meticulous research

We apply a rigorous approach to researching global real estate markets as we believe the best opportunities come from investments where we have the deepest insights. Understanding what drives returns and constantly tracking what is changing helps us anticipate real estate pricing and ultimately unlock superior performance.

Our dedicated real estate research team – one of the longest established in Europe – continually analyses global markets and identifies those markets and sectors that offer best value. The team’s research helps set our Real Estate House View, which gives predicted returns of over 100 markets and provides valuable insight to our investment team. These views drive stock selection, asset allocation and asset management across all our portfolios.

Diligent stock selection

Selecting the right stocks is critically important in achieving superior investment performance. Therefore, only the most attractive investment opportunities make it into our portfolios. We scrutinise every potential investment, taking into account location, local market dynamics, physical condition and income quality. We select only those assets that offer investors a real prospect of long-term capital and income growth. In addition, our scale and reputation gives us access to some of the best opportunities available.

Astute asset management

We carefully manage and monitor each investment and aim to continually add value. We regularly appraise each property in our portfolios and use active investment management to realise inherent value. This can include offering tenants valued services, letting vacant space and negotiating favourable lease terms. In conjunction with our experienced development team, we may also seek to improve or redevelop buildings. The development team is responsible for realising potential and ensuring projects are managed effectively. Overall, by actively managing our properties, we aim to improve investment returns.