‘Real estate has to respond to structural change’

Gillian Tiltman, Portfolio Manager, Neuberger Berman

The defining characteristic of 2020 will be structural change and real estate companies will have to adapt in order to thrive, Gillian Tiltman, Portfolio Manager, Neuberger Berman, told The Real Estate Day.

They are looking for the type of assets and the property companies that can really deliver on the huge changes that the Millennial generation has brought about in the way people live, play, work and shop.

‘The challenge for the real estate sector is to respond to the changes that are happening and to be able to deliver to the Millennial generation,’ she said. That change was already visible in 2019 but the pace will accelerate this year.

Being a global player is a great advantage because not being confined to one country or sector means that they can pick the right market at the right time. 

‘Cycles don’t go together, there are always opportunities and good markets somewhere, real estate is such a local business but investing globally allows us to  find the good cycle in one place whereas in other parts of the world or other sectors the situation may be very different’, said Tiltman. 

Neuberger Berman is a privately-held asset manager that manages global real estate securities but as a house offers equities, fixed income, private equity, private debt ‘and a whole plethora of things,’ she said. ‘We used to be part of Lehman Brothers but after 2008 we bought ourselves out, so we are employee-owned now’. 

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