The pandemic has been a catalyst for global change, rapidly accelerating some underlying trends that were already in evidence – even before 2020. It is reasonable to assume that we may never return to the way things were in 2019, but how will the ‘new normal’ affect real estate investment and what opportunities can investors expect to see?Continue reading “4 Ways Global Change Will Create Opportunity for Real Estate Investment”
The COVID-19 pandemic has been the catalyst that could completely change people’s work/life balance and the way we use, or even if we use, our office spaces.
Family offices – wealth management firms catering to ultra-high-net-worth individuals and families – should find real estate debt funds to be an attractive way to increase diversity in their clients’ portfolios. Despite catering initially to niche markets, such as commercial real estate, private real estate lending has blossomed rapidly as an alternative investment in recent years, and looks poised to be a very desirable investment vehicle for high-net-worth investors.
Remember back in the spring, when the pandemic was just making its presence felt? Many of us thought that this would put the housing market on hold, or – at the very least – depress prices. We couldn’t imagine marketing homes in the middle of a pandemic, much less entering into a contract to build new. Yet, in fact, seven months on, that has not turned out to be the case.
Why Real Estate Debt Funds Should Be Part of Your Investment Portfolio
Real estate debt funds are relatively new players in the investment field, having blossomed in the wake of the 2008 financial crisis. Traditionally, investors have been recommended to look at a blend of investments, including equities, with a view to realizing capital growth over the medium to long term. Yet, real estate debt funds now form the core of many portfolios; in his blog post, Private Real Estate Debt: The Pandemic’s Impact and the Industry’s Future, Craig Solomon, CEO of Square Mile Capital writes:
“Private lending has been one of the standout growth stories in private real estate over the past decade… the industry stands at $190 billion in aggregate assets under management…” Continue reading “Add Real Estate Debt Funds To Your Private Investment Portfolio”
An Investor’s Guide to Real Estate Debt Funds
Real estate debt funds first emerged in the wake of the 2008 financial crisis, providing an efficient way to connect lenders with developers needing short-term capital for a range of commercial real estate projects. Following the crisis, traditional lenders tightened regulations and liquidity requirements for borrowers. Banks were resistant to offering loans for commercial real estate and, if they did offer loans, they placed greater focus on income and cash flow than on equity and assets. Real estate debt funds were able to service a small but potentially very profitable niche market.