INVESTING IN
REAL ESTATE
Ireland
Ireland Real Estate
INVESTING IN REAL ESTATE
We believe that real estate warrants consideration in most investment strategies.
Long-term investment objectives mean that investors have increasingly
recognised that real assets have the potential to provide good diversification
and an attractive risk/return profile. Real estate can produce income like a
bond, enjoy capital appreciation like an equity, and derive returns from both
capital and income cycles.
DIVERSIFICATION
The case for including real estate in a balanced portfolio
stems from the low, and sometimes negative, correlation it
offers relative to other major asset classes, thus aiming to
lower portfolio volatility and seeking to enhance returns
on a risk adjusted basis.
POTENTIALLY STRONG AND
STABLE INCOME RETURNS
The income return from a real estate portfolio is derived
from the rent roll produced by the underlying assets and
is an integral part of the overall return offered by the asset
class, typically providing a premium over bond yields.
The more diversified a real estate portfolio is in terms of
sectors, geographies and lease expires, typically the more
stable the income stream.
Dublin
Dublin
CAN OFFER AN EFFICIENT HEDGE
AGAINST INFLATION
In times of economic growth and rising inflation real estate
occupational markets tend to benefit from increased
competition for space which in turn drives rental values.
As capital values are a function of both existing income
streams and future reversions the asset class could offer
an efficient hedge against rising inflation.
AN INVESTMENT BACKED BY
REAL ASSETS
Unlike most other major asset classes an investment in
real estate involves an investment in physical assets of
bricks, mortar and land. This means that even when tenants
vacate buildings the real estate investor continues to hold
an asset which can be re-let, refurbished or redeveloped with
a view to recovering or possibly enhancing value.
Paris
London
REAL ESTATE WITH SSGA
State Street Global Advisors (SSGA) Ireland has
been providing real estate asset management
services to institutional investors since 1981 and
currently manages circa €1bn1 in direct and indirect
real estate assets in Ireland, the UK, continental
Europe and the United States. The Real Estate
team manages a portfolio of more than 75 buildings
with in excess of 300 leases/licences, and a combined
rent roll of c. €54m per annum1. SSGA’s direct real
estate portfolio is primarily invested in the three
main sub-sectors of the market comprising offices,
retail and industrial buildings.
The Real Estate team is based in one of SSGA’s nine
Investment Centres and is located in Dublin. Led by Ian
Johnston, who has been involved in managing SSGA’s real
estate portfolio for over 20 years, the team of dedicated
property professionals has over 100 years’ experience in
the real estate industry.
Ian Johnston
Head of SSGA
Real Estate
1
SSGA, as at 31 March 2015.
1
About State Street Global Advisors
For nearly four decades, State Street
Global Advisors has been committed to
helping our clients, and those who
rely on them, achieve financial security.
We partner with many of the world’s
largest, most sophisticated investors
and financial intermediaries to help
them reach their goals through a
rigorous, research-driven investment
process spanning both indexing and
active disciplines. With trillions* in
assets, our scale and global reach offer
clients unrivaled access to markets,
geographies and asset classes, and
allow us to deliver thoughtful insights
and innovative solutions.
State Street Global Advisors is
the investment management arm
of State Street Corporation.
* Assets under management were $2.4 trillion
as of 31 March 2015. Please note that AUM
totals are unaudited.
OUR APPROACH
At SSGA we adopt a fundamental approach to real estate as an
asset class. With our extensive relationship networks within
local markets we are in a position to assess the relative value of
the asset class and identify the macroeconomic forces that are
likely to influence returns across both geographies and sectors
of the market. This approach is central to our process of
developing portfolio strategies which are in turn implemented
by our experienced team of real estate professionals.
As no two properties are the same, our formula for delivering
performance to clients is through the identification and
exploitation of opportunities to add value to the assets that we
manage. The type of projects our team is actively involved with
on a daily basis include lease buy-backs/re-gears, building
refurbishments, letting management, rent review negotiations
together with the development and implementation of buy/sell/
hold strategies for individual assets.
Universe of Services
STATE STREET GLOBAL SERVICES
Administration & Custodial
Fund Establishment
Accounting & Financial
Investor Services
Portfolio Management
Performance Reporting
Tax & Regulatory Services
SSGA REAL ESTATE
Portfolio Management
Research
Marketing
Asset Management
Sourcing
Disposals
Investment Strategy
Risk Management
Due Diligence
Acquisitions
Investment Appraisal
& Analysis
Project Management
Individual Asset
Strategies
Advisory Services
Client Reporting
Real Estate Fund
of Funds
Property Fund
Management
We offer a broad
spectrum of
services to our
client base, which
is predominantly
comprised of pension
funds, corporates,
charities and
intermediaries.
OUR REAL ESTATE TEAM
OUR PERFORMANCE
Our award winning team offers combined experience of over
100 years working within the industry.
SSGA has a proven ability to deliver strong performance
to our clients having won the IPD European Property
Investment Award in the Balanced Category for Ireland in
2009, 2010 and 20122 for the SSGA Property Fund (QIAIF),
our flagship real estate fund. This fund is the #1 performing
real estate fund over 10 and 15 years, and #2 over 20 years in
the Mercer survey (31 March 2015).3
23
26
26
17
14
YEARS
YEARS
YEARS
YEARS
YEARS
Ian Johnston
Head of SSGA
Real Estate
Martina McCarthy
Head of Real Estate
Transactions
Tony Whitmore
Senior Real Estate
Fund Manager
Daragh Clarke
Senior Real Estate
Fund Manager
Orla Kelly
Assistant Real Estate
Fund Manager
2
3
Joint winner. Source: IPD.com
SSGA, Mercer Pooled Fund Survey, Property Fund Manager Average. SSGA
Property Fund (QIAIF) is the #1 performing real estate fund over 10 and 15 years,
and #2 over 20 years in the Mercer survey (31 March 2015). Past performance is
not a guarantee of future results.
For more information about SSGA’s complete fund offerings,
please contact:
Ann Prendergast
Head of Relationship Management,
State Street Global Advisors Ireland
+353 1 776 3043
ann_prendergast@ssga.com
ssga.com
This material is solely for the private use of SSGA clients and
prospects and is not intended for public dissemination.
State Street Global Advisors Ireland Limited is regulated by the Central Bank of
Ireland. Incorporated and registered in Ireland at Two Park Place, Upper Hatch Street,
Dublin 2. Registered number 145221. Member of the Irish Association of Investment
Managers. T: +353 (0)1 776 3000. F: +353 (0)1 776 3300.
Past performance is not a guarantee of future results.
Investing involves risk including the risk of loss of principal.
The whole or any part of this work may not be reproduced, copied or transmitted or
any of its contents disclosed to third parties without SSGA’s express written consent.
Investing in REITs involves certain distinct risks in addition to those risks associated
with investing in the real estate industry in general. Equity REITs may be affected by
changes in the value of the underlying property owned by the REITs, while mortgage
REITs may be affected by the quality of credit extended. REITs are subject to heavy
cash flow dependency, default by borrowers and self-liquidation. REITs, especially
mortgage REITs, are also subject to interest rate risk (i.e., as interest rates rise, the
value of the REIT may decline).
There are risks associated with investing in Real Assets and the Real Assets sector,
including real estate, precious metals and natural resources. Investments can be
significantly affected by events relating to these industries.
Investing in foreign domiciled securities may involve risk of capital loss from
unfavourable fluctuation in currency values, withholding taxes, from differences
in generally accepted accounting principles or from economic or political instability
in other nations.
Diversification does not ensure a profit or guarantee against loss.
The views expressed in this material are the views of Ian Johnston through the
period ended 31 March 2015 and are subject to change based on market and
other conditions. This document contains certain statements that may be deemed
forward-looking statements. Please note that any such statements are not
guarantees of any future performance and actual results or developments may
differ materially from those projected.
The information provided does not constitute investment advice as such term is
defined under the Markets in Financial Instruments Directive (2004/39/EC) and it
should not be relied on as such. It should not be considered a solicitation to buy or
an offer to sell any investment. It does not take into account any investor’s or
potential investor’s, particular investment objectives, strategies, tax status, risk
appetite or investment horizon. If you require investment advice you should consult
your tax and financial or other professional advisor. All material has been obtained
from sources believed to be reliable. There is no representation or warranty as to
the accuracy of the information and State Street shall have no liability for decisions
based on such information.
The State Street Global Advisors Property Unit Trust was authorised by the Central
Bank of Ireland as a unit trust pursuant to the Unit Trusts Act, 1990 and the European
Communities (Alternative Investment Fund Managers Directive) Regulations 2013 (as
amended) as a Qualifying Investor Alternative Investment Fund on 31 March 2015.
This document should be read in conjunction with its Prospectus and Supplement.
All transactions should be based on the latest available Prospectus and Supplement
which contain more information regarding the charges, expenses and risks involved
in your investment. Prospective investors may obtain these reports free of charge
from State Street Global Advisors, Two Park Place, Upper Hatch Street, Dublin 2.
T: +353 (0) 1 776 3000. F: +353 (0) 1 776 3300.
Previous to 31st March 2015 this fund was known as the SSGA Exempt Property Unit
Trust (EPUT).
© 2015 State Street Corporation. All Rights Reserved.
ID4314-IREMKT-1387 0615 Exp. Date: 30/06/2016