Enlightened Bet

PORTFOLIO Magazine|May - June 2020

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Enlightened Bet
Many real estate investors are looking at defensive assets and diversifying portfolios
Rohit Henmani

The COVID-19 outbreak remains a highly uncertain situation, disrupting people, communities, and businesses globally. Irrespective of location, it is forcing communities and economies to reprioritize, refocus, and realign values and objectives. In short, the scenario we all face is producing an unprecedented impact on our lives and on the way we work and learn.

Investors in Singapore and across the world are facing a similar predicament. They are altering strategies and delaying capital deployments, and some are taking a wait-and-see approach when eyeing asset purchases.

This conservative approach is indicative of the prudence and sensible attitudes in this environment. However, many real estate investors, by nature, take a longer-term view and thus are looking at defensive assets and diversifying portfolios.

One idea that we’ve been discussing increasingly with investors looking for both defensive and diversified strategies is purpose-built student accommodation (PBSA). While disruptions to education have become a reality globally due to current events, the continuity of education will become a more critical part of the global economy when stability returns. Despite the current challenges and the resulting uncertainty, PBSA’s position as an attractive defensive asset class remains.

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May - June 2020