Addae-Dapaah, K;
(2010)
Industrial real estate investment:does the contrarian strategy work?
Journal of Real Estate Finance and Economics
, 41
(2)
pp. 193-227.
10.1007/s11146-008-9147-x.
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Abstract
The superiority of the contrarian investment strategy, though well attested to in the finance literature, has received scant attention, if any, in the real estate literature. This study uses empirical industrial real estate investment return data from 1985Q1 to 2005Q3 for the US, and some Asia Pacific cities in order to ascertain the relative superiority of “value” and “growth” industrial real estate investments. The results show that “value” industrial property investment outperformed “growth” industrial property investment in all the holding periods under consideration. Furthermore the industrial property investments exhibit return reversal. This implies that the superiority of the contrarian strategy is sustainable. The results of stochastic dominance tests validate the relative superiority of “value” over “growth” industrial property investment. This implies that fund managers who traditionally have been favoring prime (i.e. growth) industrial property investment may have to reconsider their investment strategy if they want to maximize their return.
| Type: | Article |
|---|---|
| Title: | Industrial real estate investment:does the contrarian strategy work? |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1007/s11146-008-9147-x |
| Publisher version: | http://doi.org/10.1007/s11146-008-9147-x |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. |
| Keywords: | Contrarian investment strategy, Value–growth spread, Value properties, Growth properties, Stochastic dominance, Means reversion |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > The Bartlett School of Planning |
| URI: | https://discovery.ucl.ac.uk/id/eprint/1503255 |
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