Real Assets

Land is a type of real asset that is tied more to the intrinsic nature of real estate than to the often-volatile stock market.

A real asset is any tangible good that has intrinsic value and therefore can be an investment. Real assets include land and developed real estate, precious metals (gold, silver, platinum), natural resources (timber) and raw energy (oil crude, natural gas and the like). Some consider real assets to be commodities; however, that term does not apply to all real assets. Petroleum is traded on a world price, but real estate value is extremely dependent on several unique factors, such as location and the potential uses of the property.

Real assets can provide a good hedge against other types of investments. For example, they have minimal correlation with publicly traded stocks and bonds. As a hedge against inflation, real estate and other real assets often increase in sync with consumer prices.

Real estate, in particular, is attractive to investors, owing to the historically low prices of land resulting from the global economic recession. But this cannot be said about all land, as it is a real asset with great variation. A 2500-acre parcel in the UK is not equivalent to a same-size parcel in Uganda, Columbia or Greece. The potential for each type of property is a function of how that land might be used in the near-term future, each affected by political and economic conditions. Population increase and pent-up demand also need to be taken into consideration when evaluating land as an asset. That is very much the case in the UK, where Lucent is currently focused. Population growth, driven in part by immigration, combined with insufficient investment in house building, has led to a chronic shortage of housing and a high demand for appropriate land.

Display #
Title Published Date
England’s Second-Tier Cities: Building Homes Will Help 07 March 2016
Smaller Home Builders in the UK: How Can They Help Fix the Housing Shortage? 05 January 2016
Will Privatization of Public Housing Ease the Housing Shortage? 31 December 2015
What Does Retention of Minister for Housing Brandon Lewis Mean for UK Housing Policy? 18 November 2015
What is the NHS Healthy New Towns Initiative – and How Does it Relate to Development? 20 October 2015
Is Strategic UK Land a Real Asset Worth Investing In? 09 September 2015
How Real Asset Managers Approach Land Investments 09 September 2015
Who are First Time Home Buyers in the UK – and What Do They Want? 21 August 2015
What Does the UK Green Party Propose Be Done to Increase UK Housing? 21 August 2015
The Current State of Foreign Buyers of UK Homes 21 August 2015
How Does the Ageing of the Baby Boomers Affect the UK Housing Market? 21 August 2015
Young Voters Ranked Housing Costs Higher Than Crime in the 2015 Election 23 July 2015
Challenging the Greenbelts and Rural Lands: When Building Is Better 10 June 2015
To What Degree are Businesses and People Leaving London – and Why? 15 May 2015
The Role of Strong Urban Infrastructure in Growing UK Cities 18 March 2015
What Does the UK Cities House Price Index Show Strategic Land Investors? 01 March 2015
What Are the Potential Scenarios for Housing in the UK in 25 Years? 01 March 2015
The Differences Between Investing in Housing and Mass Infrastructure 01 March 2015
What Strategic Land Investors Must Know About Water and House Building in the UK 28 January 2015
What is the Private Rental Sector Initiative (PRSI) and what Does it Do to Increase Housing Stock? 28 January 2015
Key Tips for New Housing Sector Investors in the UK 28 January 2015
Why Foreign Investors Look to Invest in UK Land 27 December 2014
What is the Current State of House Building Planning Permissions in the UK? 27 December 2014
The Benefits of UK Land as a Real Asset to Investors 27 December 2014
Must London Allow Density and Sprawl to Address Housing Shortages and High Prices? 26 November 2014
How are “Locally Led” Garden Cities Different? 26 November 2014
What are the Short and Long Term Risks of Investing in Land as a Real Asset Investment? 29 October 2014
The "Green" Land Investor: How to Invest in Sustainable Land 29 October 2014
The Differences Between Institutional and Non-Institutional Land Investors 29 October 2014
LPAs Running Behind in Plans, But Approvals Are Up 23 September 2014
Can the UK’s Homebuilding Planning Process Be Accelerated? 23 September 2014
The Surprising Environmental Cost of the UK Housing Shortage 02 September 2014
Ways the Economically Disadvantaged in the UK are Affected by the Housing Shortage 02 September 2014
Help to Buy: More Houses or Just Higher Prices for UK Households? 02 September 2014
Where Raw Land is the Investment Chosen by Institutional Investors 30 July 2014
How Do Eurozone Real Assets Perform Relative to the UK? 30 July 2014
How UK Cities Realize Economic and Community Benefits from Housing Construction 27 June 2014
How UK Land is Rezoned 27 June 2014
Planning Your Exit Strategy in a Land Investment 27 June 2014
Should Land Investors Be Encouraged by the Rise in UK House Building? 26 June 2014
Land Investments Relative to Traditional Investments in the Recession Era 22 May 2014
What Are the Current Prospects for Investing in the Private Rental Sector? 21 May 2014
Like All Investments, Land Development Has Inherent Challenges 21 May 2014
Is “Ready to Build” Land Available to Meet the UK’s Critical Supply-Demand Housing Equation? 21 May 2014
Fraud is Driving Investors from Precious Metals to Land and Other Real Assets 01 May 2014
What If No More Homes Were Built in the UK? 31 March 2014
Land and Inheritance Taxes – the Investor Opportunity 31 March 2014
How Undeveloped Land Is a Better Investment Diversification Strategy 31 March 2014
Key Variables in Real Assets that Create Volatility 01 March 2014
How Do Housing and Infrastructure Development Compare to Population Growth in the UK? 21 November 2013
Is New Housing Construction Encouraged in the National Planning Policy Framework? 21 November 2013
What Are the Risks of Real Assets as an Investment? 28 June 2013
Do Real Asset Funds Make Sense in the Current Economy? 22 May 2013
Real Asset Portfolio Investing 25 September 2012
Understanding Real Asset Funds 25 September 2012

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The Lucent Strategic Land Fund is a Dedicated Fund of KMG SICAV–SIF, a Luxembourg-registered "Société d'Investissement à Capital Variable" organised under Luxembourg Law of 13 February 2007 relating to specialised investment funds (SICAV–SIF). The KMG SICAV–SIF is domiciled in Luxembourg. The Luxembourg regulator is "Commission de Surveillance du Secteur Financier" (CSSF). In accordance with the risks associated with the Lucent Strategic Land Fund, the shareholders have to be "well-informed," "institutional/professional" investors. No guarantee is given or intended as to the completeness, timeliness, or adequacy of the information provided herewith.

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