The bed, the shed and the bread: A selective approach towards investing in structural winners
The coronavirus outbreak and consequent lockdown responses have led to a secular realisation that some asset classes are somewhat more resilient, and others less so. Although immediate losers, such as hotels and prime retail, are being flagged out rather directly, the permanence of the gainers has yet to be truly tested, as the crisis continues to unfold with no clear end in sight. Along the same vein, investors need to take a granular and selective approach towards investing in structural winners, such as the multifamily sector, warehousing and logistics, and essential retail. To be fair, these sectors are not serendipitous by-products of the COVID-19 crisis. Prior to 2020, the “beds, sheds and bread” thesis was already on the radar of many institutional investors, as evidenced by budding transaction activities.
The bandwagon is moving fast, and it is also filling up very rapidly. Real estate investors who did not dip their toes into these sectors before the pandemic are