Bridgepoint sees opportunity in ‘re-rated’ real estate

Bridgepoint Group sees higher interest rates and falling property valuations as creating opportunities in parts of the real-estate market that other investors are avoiding. Its executives argue that experienced, disciplined investors with specialist knowledge can benefit from the industry shake-out, as higher borrowing costs and slower deals put pressure on funds that invested during the low-rate period.

The London-based investment firm manages $125 billion in assets and expanded into real estate this summer by acquiring Kayne Anderson Real Estate, which has more than $22 billion in assets. Kayne Anderson chief executive Al Rabil highlighted medical office space as one attractive sector, citing an ageing population and occupancy that has remained above 90% for more than 20 years; the article says he identified three sectors but names only this one in the supplied text.