At a time when financial markets are seeing highly volatile securities prices and the prospect of higher inflation in the short and medium term, alternative investments in private markets make a lot of sense.
Government real estate, in particular, holds a number of advantages for institutional investors looking for a long-term home for their money that combines excellent visibility and competitive yields.
If visibility is a crucial criterion when selecting an investment, government real estate has attractive features for investors who are also looking for diversification, security and yield. Properties rented by governments represent a real estate sector that is too often overlooked by institutional investors, and one that offers several advantages. Tenants are sovereign entities with good credit quality; fixed lease terms are longer than with corporate tenants (longer than 15 years on average); and yields are attractive compared with standard commercial real estate. F
