CAPITAL WATCH ISSUE 1 2018

Alternatives FEATURES The last decade has seen considerable change in the Alternatives landscape in London resulting from huge inward investment fromoperators and investors. Trends such as advances in healthcare technology, shifting demographics, increasing pressure on housing and the increasing global demand for higher education have led to a shift in focus and value in some of the less traditional asset classes. As a result, investors have turned their attention to these asset classes, as they seek yield and investments that will increase the diversity of portfolios by exposing them to new growth drivers. 2017 was another strong year for investment into these specialist sectors, accounting for more than £15bn (24%) of the total £65bn invested in UK real estate. With investment volumes forecast to reach £17.5bn this year, the days of these sectors being classed as ‘alternatives’ feels like it’s coming to an end. In the following feature set, we take a look at trends in some of the Alternative sectors, London’s contribution to the UK picture, and challenges on the horizon as Alternatives evolve. By James Johnston, Partner, Specialist Sector Investment james.johnston @cushwake.com CUSHMAN & WAKEFIELD 12 ALTERNATIVES