Scottish Widows Investment Partnership is urging institutional investors to look outside their national borders and diversify their portfolios Europe-wide.
According to SWIPs research on European real estate, many investors are too domestically focussed, with international real estate holdings representing only a small percentage of portfolios.
In sector allocation, SWIP recommends an overweight position in the European retail sector, largely at the expense of the office sector. SWIP also recommends an overweight position in the distribution warehouse sector.
In the retail sector, SWIP has identified France and Spain as having the best upside potential.