Alternatives

Real estate credit

US

Columbia Threadneedle investment management teams benefit from a research capability dedicated to public real estate debt investments, via commercial mortgage-backed securities (CMBS).
CMBS are bonds backed by a diversified pool of commercial real estate mortgages (conduit CMBS) or bonds backed by a mortgage from an individual borrower (Single Asset Single Borrower, SASB).  We consider CMBS a sub-sector of our overall structured assets capability.
We believe that structured assets are inherently inefficient and that the degree of inefficiency changes with broader market conditions. We focus on a value-driven investment process to exploit market inefficiencies in a consistent and repeatable manner. 

Solutions

Commercial mortgage-backed securities                                                                                                                                                                                                                                                                                                                        

US

Columbia Threadneedle’s real estate loan investment team focuses their research primarily on privately negotiated first mortgage debt, secured by stable and cash generating real estate assets. The team is comprised of highly experienced private real estate credit professionals and their coverage includes all major property types.

Approximately 15% of the US commercial mortgage debt outstanding is held by life insurance companies, who may find the long-term income generating nature of these loans a good match for their liabilities.

The real estate loan team focuses their research capabilities across all fixed rate loans, with terms ranging from 3 to 20 years and balloon balances at maturity. The most common structure is a 10-year term, with monthly payments based on a 25-year amortisation schedule.

These loans are thoroughly researched and carefully selected with a focus on long-term value to drive mortgage performance throughout the real estate cycle.
Our real estate loan investment team benefits from the firm-wide commercial real estate capabilities at Columbia Threadneedle.  There is a continuous collaboration and exchange of insights and ideas across the spectrum of private and public real estate equity and debt between investment managers and analysts.

Solutions

Loan investments across all property types, with a particular focus on the retail, apartments, industrial, and office sectors

Real estate investing powered by diverse expertise and specialisms
Real Estate, Property, Buildings

Insights

15 February 2024

Hans Nordby

Head of Research & Analytics, Real Estate (US), Lionstone Investments

Joanna Tano

Head of Research, Europe, Real Estate (EMEA)

2024 Global Real Estate Outlook

What's in store for real estate in 2024? Global megatrends and financial conditions will impact returns and sector allocation.
Read time - 4 min
20 December 2023

Marcus Phayre-Mudge

Head of Property Investment, Thames River Capital

George Gay

Fund Manager

Targeting relative value in listed real estate

With inflation data suggesting we are at or near the peak in interest rates and investors assessing scope for cuts in 2024, real estate equities have risen sharply from their lows.
Read time - 4 min
12 December 2023

Assia Amore

European Fund Manager, Real Estate

Ian Kelley

Managing Director, Head of France, Benelux & Southern Europe, Real Estate

Joanna Tano

Head of Research, Europe, Real Estate (EMEA)

The resurgence of Europe’s luxury high streets is gathering momentum

High street retail markets across Europe are benefitting from the solid recovery of tourism, both international and domestic.
Read time - 3 min
30 June 2023

James Coke

Fund Manager and Co-Head of Institutional UK Real Estate

UK real estate: half-year health check

Despite volatility in the UK property market over the past 12 months, there's been a nascent pricing recovery since March. So, what's the outlook like for the rest of the year?
Read time - 4 min
20 March 2023

James Coke

Fund Manager and Co-Head of Institutional UK Real Estate

Robin Jones

Co-Head of Institutional, UK Real Estate

Delivering sustainable returns in real estate investing

Climate change is affecting every sector of our economy, and it remains one of the most important factors to consider when making long term investment decisions.
Read time - 8 min
17 March 2023

Stewart Bennett

Global Head of Alternatives

Real estate – understanding the new normal

Where next for real estate? With sections on the UK, Continental European and US real estate our team take a closer look at the economic backdrop, activity in 2022, the outlook for 2023 plus strategy calls across various sub-sectors.
Read time - 9 min
15 February 2023

Guy Glover

Director, Property Funds

Emma Gullifer

Assistant Fund Manager

Build to rent investment – performance, resilience, and a great diversifier

Residential property is no longer an emerging asset class or viewed solely as an ancillary part of a commercial property allocation.
Read time - 5 min
22 December 2022

Joanna Tano

Head of Research, Europe, Real Estate (EMEA)

Real Estate: Preserving Value

There was a definite air of positivity in European real estate markets in January and February 2022.
Read time - 4 min
14 March 2022

Solutions Enhanced: Capital Market Assumptions 2022 Making a transition

The end of 2021 saw a continuing reminder of the impact of coronavirus, inflation occurring in major economies, and the world waking up to the stark choices presented by the climate emergency. We set out the expectations for what all this could mean for investors over the next five years and in the longer run. These capital market assumptions form the base case we use when constructing strategic asset allocations for clients.
Read time - 3 min

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Investment strategies

We offer a broad range of actively managed investment strategies and solutions covering global, regional and domestic markets and asset classes.

Our funds

Columbia Threadneedle Investments has a comprehensive range of investment funds catering for a broad range of objectives.

Documents

Find all documents related to this capability.

Important Information

For use by professional clients and/or equivalent investor types in your jurisdiction (not to be used with or passed on to retail clients). For marketing purposes. The above information is intended for informational purposes only and should not be considered representative of any particular investment. This should not be considered an offer or solicitation to buy or sell any securities or other financial instruments, or to provide investment advice or services.

Investing involves risk including the risk of loss of principal. Your capital is at risk. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. The value of investments is not guaranteed, and therefore an investor may not get back the amount invested. International investing involves certain risks and volatility due to potential political, economic or currency fluctuations and different financial and accounting standards. Real estate investing involves risks, including, without limitation: (i) actual operating results; (ii) interest rates; (iii) availability and costs of financing; (iv) economic and market conditions; (v) date of expected exit; (vi) increases in costs of materials or services beyond projections; (vii) force majeure events (e.g., terrorist attacks, extreme weather conditions, earthquakes, war); (viii) supply/demand imbalances; (ix) currency fluctuations; (x) litigation and disputes relating to investments with joint venture partners or third parties; (xi) changes in zoning and other laws; (xii) inability to obtain necessary licenses and permits; (xiii) competition; and (xiv) changes in tax law and tax treatment and disallowance of tax positions.
The value of directly-held property reflects the opinion of valuers and is reviewed periodically. These assets can also be illiquid and significant or persistent redemptions may require the manager to sell properties at a lower market value adversely affecting the value of your investment.
The views expressed are as of the date given, may change as market or other conditions change and may differ from views expressed by other Columbia Threadneedle Investments (Columbia Threadneedle) associates or affiliates. Actual investments or investment decisions made by Columbia Threadneedle and its affiliates, whether for its own account or on behalf of clients, may not necessarily reflect the views expressed. This information is not intended to provide investment advice and does not take into consideration individual investor circumstances. Investment decisions should always be made based on an investor’s specific financial needs, objectives, goals, time horizon and risk tolerance. Asset classes described may not be appropriate for all investors. Past performance does not guarantee future results, and no forecast should be considered a guarantee either. The information presented above has not been reviewed by any regulatory authority.

In the UK: Issued by Threadneedle Asset Management Limited, No. 573204 and/or Columbia Threadneedle Management Limited, No. 517895, both registered in England and Wales and authorised and regulated in the UK by the Financial Conduct Authority.

Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.