CBRE Global Investors has said that recovery from the COVID-19 crisis will place a greater onus on real asset impact investing as capital allocators look for resilient long-term risk-adjusted returns that serve “the most fundamental needs of society.”
In a white paper on the subject, the manager argues that that the “age-old” investor perception that investors have to sacrifice returns in order to pursue ESG-focused investments has now been dispelled. This is, it states, particularly evident in sectors such as affordable housing, where investors can rely on predictable, steady returns. Furthermore, such strategies are less exposed to cyclical market forces and systemic risks.
Even prior to COVID-19, Eurostat data illustrated that one in four Europeans are considered “rent burdened,” meaning that they are spending more than 40 percent of their disposable incomes on housing costs, a problem that is only set to grow further due to the impact of the pandemic.
