The fund targets four specific pillars: an aging population, digitalization, the 'generation rent' housing sector, and urban expansion. These themes currently anchor the portfolio, with digitalization—focused on logistics and data centers—commanding the largest share at 27.9 percent. Performance in mid-2026 has already outpaced the wider equity market, signaling a recovery from 2025 trends.
Strategic consolidation remains a defining feature of the current landscape. Norris highlighted the recent bid for SEGRO by US-based Prologis as a bellwether for the sector. While Prologis seeks to secure a dominant footprint in the data center market, SEGRO’s board rejected the initial offer of £9.25 per share, citing a failure to reflect the long-term strategic value of their assets. SEGRO has countered with a valuation assessment reaching up to £13.11, setting the stage for potential price discovery.
Beyond high-profile takeover battles, the fund’s individual holdings report robust operational results. Grainger, a key player in the build-to-rent sector, continues to see high occupancy levels alongside steady rental growth. Norris maintains that the fund’s focus on defensive, income-producing assets provides a hedge against ongoing market volatility, with the divergence between public and private property valuations likely to favor listed REITs as appraised values eventually align with current market realities.
Comments (0)
No comments yet. Be the first!