Correspondence: Graeme Newell, School of Economics and Finance University of Western Sydney Locked Bag 1797, Penrith South NSW 1797, Australia. Tel: +61 2 9852 4175; Fax: +61 2 9852 4185; E-mail: g.newell@uws.edu.au

¹is Professor of Property Investment at the University of Western Sydney. He has strong links to the property industry both in Australia and internationally via the Australian Property Institute and the RICS. His research interests include LPTs, property risk analysis and the role of property in investment portfolios.

²is research officer in the Property Research Group at the University of Western Sydney. His research interests include the role of emerging property sectors in investment portfolios.

Received 1 March 2007; Revised 1 March 2007.

Abstract

Recent years have seen an increased attention given to the property investment opportunities available from the leisure property sector. This paper will assess the significance of leisure property in property portfolios in Australia; particularly in listed property trusts (LPTs) and highlighting issues such as the current portfolio levels and the leading property funds in the leisure property sector. A leisure property LPT performance index is established and leisure property risk-adjusted performance analysis carried out over between 2000 and 2006, as well as the portfolio diversification benefits of the leisure property are assessed. Compared to the other LPT sectors, leisure property LPTs have shown an outstanding performance, as well as providing strong risk-adjusted returns and portfolio diversification benefits compared to the other LPT sectors and the major asset classes. The future implications for leisure property investment in the UK are also highlighted.