There are now around 25 property fund of funds in Europe, pursuing a variety of strategies. Assuming an average size of around 250m, a typical fund of funds is likely to invest in 10-15 ‘best in class’ funds, creating exposure diversified by country, sector, manager and market cycles.

We anticipate continued growth in fund choice, as well as market transparency, professionalism and liquidity. In addition, growth in niche sectors such as car parks, petrol filling stations and hospitals will surely continue. We are beginning to see growth in property derivatives, and these will present interesting opportunities for investors. By combining a top-down investment approach, with a bottom-up stock-driven approach investors are able to achieve exposure to high quality, diversified, portfolios of property.