Sampension’s real estate investments provide stable returns

15 February 2021

Sampension’s real estate investments have performed well in the first year of the corona pandemic

All over the world, the market for owner-occupied and rental housing in the past year has been supported by very low interest rates, and both in Denmark and, for example, the USA, the total demand for housing has been very high. It can i.a. is seen on the return on real estate investments in Sampension.

As an investor, Sampension is interested in many parts of the real estate market, where the different types of risks are reflected in different types of returns.

The rental price per. square meters of a home has been around DKK 2,100 since 2018. The level is the same when it comes to office properties. The return that is currently traded for both types of properties is on average almost 3.3 per cent.

“The value of office properties has actually done well during the first year of the corona crisis. The question is what the consequence will be if the homework has to a greater or lesser degree come to stay, ”says Henrik Olejasz Larsen, Investment Director at Sampension.

It looks different for retail properties, whose rental rate has fallen in price for a number of years as a result of increased e-commerce.

“Covid has further reinforced that trend, and the question is whether we do not end up seeing a permanent effect, because more and more consumers are increasing the volume of digital purchases and sticking to the habit, even when the pandemic subsides,” he explains.

At the same time, this means that investors’ demand for logistics properties has picked up further in the past year. Logistics properties are fast to build and the required rate of return has fallen. Today it is around 5 per cent.

“It is a market where we as an investor have been in early and continue to invest all over the world,” says Henrik Olejasz Larsen.

He explains that Sampension also goes for higher returns by taking a slightly higher risk in other areas. For example, it may be by entering the process earlier and helping to develop new properties.

Source: Sampension
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