Social real estate is not just investing with a conscience

A recent survey by Alpha Real Capital showed that while 80% of investors polled were aware of the concept of social real estate, only 30% planned to increase their allocation to it.

This was “slightly disappointing”, as Adrian D’Enrico, head of social real estate at Alpha Real Capital explained to Richard Betts of Real Asset Media.

D’Enrico said the definitional challenges are one reason for the poor showing but that people are beginning to understand that it refers to social housing, healthcare and education as well as their subsectors.

Although some people think that this is a niche opportunity, D’Enrico said that is not the case. By his calculation it is at least a £50 billion opportunity. And while some people assume that returns will be less than other types of asset earn, D’Enrico explained that this is what people said about sustainable investing 10 years ago and returns have been as good or better for many such assets.

Click on the video to watch the full interview.