The business case for responsible investment requires investors to take a longer term perspective in their appraisals in order to meet expectations, according to Hermes Real Estate.
The firm’s 2014 Responsible Property Investment (RPI) report 2014, entitled Planning Ahead, argues that for responsible investment to become an embedded practice in real estate funds it is essential for investment performance to be judged over a longer time period.
This is particularly the case when it comes to measuring the associated risks and matching returns criteria.
Saker Nusseibeh, chief executive officer, Hermes Fund Managers, says: “We have a strong culture of responsibility at Hermes. While the wider economic and social benefits of this approach are self-evident, a longer term view must be taken by investors if returns are to match expectations. To capture the best opportunities, the tools and methodologies to identify and assess them must be embedded across the investment process.”
Chris Taylor, chief executive officer, Hermes Real Estate, says: “Last year’s RPI report focused on creating wider socio-economic benefits from real estate development. We have gone a step further this year by calling on the industry to embed a longer term approach to responsible investment that will secure acceptable returns while providing sustainable places for people to live, work and play.”