Real Estate Investment: Overview, Sector Distribution, Geographical Distribution, Investment Features, Variations and Growth, Fulfillment of Objectives

Real Estate Investment 1
REAL ESTATE INVESTMENT
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Real Estate Investment 2
Overview
The current state of the European Property Market when compared to the overall
global performance index overs a variety of real estate investment options with promising
positive returns. However, it needs a good approach when selecting the type of market as
offered by the giant macroeconomic portrait, the trends, and other logistic sectors that bid for
a favorable environment for investment. Like, the past cases have shown proliferation
concerns in the UK, but 2018financial predictions show a promising overall growth level
marked at 1.3% in the UK market but still with increased uncertainties (BNB Paribas Real
Estate 2019). The same inefficiency applies to the Eurozone, especially considering the
reduced foreign trading that has affected the entire real estate market operations. This
examination will review the current company portfolio with other issues identified in the
sector, geographic regions, and offer an opinion on strategized procedures that will best work
for the company.
Sector Distribution
Portfolio sector weighting statistics rank industrial sector as the leading in the UK
Commercial property market averaged at 46%(BMO Real Estate Partners, 2018). The rental
sector represented 27%, while offices and other sectors represent 16% and 11% respectively
in 2018 (Knight Frank, 2018). However, major segment odds performed against the
benchmarking approximations. 2018 showed a shift in the investment plans of many
investors on capital assets based on the sectoral distribution variances. Previously, in the year
2017, specialists' assets attracted 37% of the investors, whereas most popular capital assets in
industrial and distribution section received little traction. The retail, offices, and hotel sectors
represent 7.6%, 29.3%, and 4.3% in 2018, respectively. (Wilson et al., 2018).

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Source: Wilson, et al., 2018)
Other cities in other European regions showed varying yields as attached to three
primary sectors namely retail, logistics and office, Based on the current investment portfolio
plan identified with the company, Berlin, Paris, Warsaw and Milan office prime yield was
2.75%, 3%,4.75% and 3.40% (Wilson et al. 2018). The rental portfolio, which included the
company non-UK shopping centers, represented a prime yield of 3.5% in Barcelona ( PWC
2018). The average performance of each sectoral formation as represented by the yield value
and price variances as provided by each sectoral distribution proves the potential of
improvement in different megacities in Europe and the UK.
The current investment plan of the company has included other major sectoral
segments that perform better in megacities in the UK but again debarred the cities and other
sectors that also perform better. The logistics lead in potential opportunities identified to
include critical cities in southern Europe and significant transport corridors. The effect comes
with the double-digit commerce growth that influenced the variances of sectoral property
prices in the year 2018; thus, the shifts in the investments plans of many investors (Williams,
2018). The potential of investment in different sectors may require the company to include
an alternating investment plan that will need to increase portfolios in non-UK regions. The

Real Estate Investment 4
primary focus should be on the projected investment yield identified in different areas as
recognized with the value of the risk that may affect the yield value.
In the UK, office and retails sectors shows a significant increase in yield amounts.
The sectors have also earned a better lure from the minority groups. However, they offer a
more risk for uncertainties, which may result from the low market value of the assets and the
future stagnations of the asset prices. The deterioration of the industry sector, as provided in
the 2018 analysis reports does not create a potential outlook of the continual future worsening
of capital asset prices traded in the sector (Santos 2018). 2019 shows the potential of another
shift, which may promote these sectoral levels. Though, the slowing price growth levels in
former hotspots do not offer a possibility for future increase investment opportunities
Geographical Distribution
In 2018, the southeast region led with 37% of the total capital value. London,
Scotland, West Midlands, East Midlands, Yorks/Humber, North East, and North West
consisted of approximately 19%,9%,9%.8%.7%.6%.4%, and 1% respectively (Knight Frank,
2018). The global rising uncertainty has seen Europe continuing to house among the most
liquid and trusted commercial real estate market globally. International investors and
domestic operators receive similar benefits offered by these variances identified in the Europe
geographical region. The entire Property European Investment volume of assets above EUR
5M totaled to EUR 277.7 billion in the year 2018 (BMO Real Estate Partners, 2018). This
valuation shows a large market with many investment opportunities that are only identical to
a significant player in different geographical regions.
The significant concerns involving the real estate investment in the broader
geographical region consists of determining suitable assets. The most active markets are
valued for offering high-quality real estate assets, but as identified with the company