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What is real estate investment?
Real estate investment refers to the purchase of any property (or properties) with the intention of generating income or achieving long-term capital appreciation from its acquisition. Typically, this can be done through two investment methods – direct investment and indirect investment:
Direct investment
Direct investment is any investment in real estate for the purposes of rental income or future resale. For example, direct investment can often apply to properties bought using private mortgage lending for residential or commercial properties.
Indirect investment
Unlike direct investment, indirect property investments refer to the purchase of publicly traded companies that own properties, or the pooling of funds with other investors to build a diversified portfolio of real estate assets.
Why consider real estate investment banking?
For many high and ultra-high-wealth individuals, real estate is often considered an investment opportunity for expanding their portfolio. This is thanks to its tangible nature, W for long-term return, and clear portfolio diversification. Key reasons to consider real estate investments include:
A traditionally reliable hedge against inflation
Historically, real estate has proven to be a reliable long-term investment, with the value of property typically appreciating over time at a quicker rate than inflation. This means wealth invested in real estate is likely to grow in value over time, no matter the rate of inflation. However, as with any investment, it’s worth remembering that real estate investments still have the potential to depreciate in value.
Active involvement can influence returns
Real estate offers you active control over your investment, allowing you to actively manage your property to make improvements and increase its value. This involvement gives you increased autonomy, compared to the sometimes-intangible nature of a wholly passive portfolio.
A tool to build generational wealth
Real estate can be a valuable tool for generating and building generational wealth. Long-term property ownership can maximise appreciation, while effective succession planning and estate administration services can ensure a smooth transfer of management to future generations.
Real estate investment philosophy
We believe that inefficiencies exist in opaque and illiquid real estate markets and that using local networks and asset managers can help uncover compelling and mispriced investment opportunities for you to capitalise on.
And as mispricing is both capital and income-related, this creates an opportunity for enhanced returns and low volatility, which – coupled with creative deal sourcing, intelligent structuring and management – can unlock and maximise any hidden value potential of your properties.
Our key strengths in real estate investing
We’ll work in partnership with you to help ensure you get the best possible return from your investment and have access to opportunities that are ideally suited to your investment goals, including all of the following benefits:
Partner and consultation
We take a consultative, partnership-driven approach to our real estate investing, helping to ensure that you have direct access to any global real estate investment banking opportunities. These opportunities include commercial real estate in global gateway cities, niche hard assets, and diversified fund opportunities delivered by carefully selected sector experts.
Research and asset acquisition
Our comprehensive macro, strategic and tactical analysis allows us to identify motivated sellers and mispriced ‘on’ and ‘off-market’ assets in target locations.
Asset manager partnerships
By identifying and partnering with local asset managers in target regions, our team is often able to uncover compelling real estate investment opportunities in highly restrictive and segmented markets for you to invest in.
Strong structuring processes
By partnering with our real estate team, you’ll benefit from access to our strong structuring processes, which seek to maximise asset efficiency and investment return potential with a broad and comprehensive range of support services.
The potential return on your investment can benefit from our strength in structuring, and we’re always looking for ways to make your assets more efficient.
More about alternative investments
Get more from our real estate client solutions
Our real estate investment solutions have been developed to suit different client needs, as well as differing levels of client involvement. This allows us to tailor our real estate services to your exact criteria for a smoother investing process:
- Funds: Our fund options provide an attractive way of accessing a diversified pool of professionally managed real estate assets, either domestically or internationally, with the potential for improved yields and capital growth.
- Club deals and co-investments: We offer clients access to institutional-grade commercial real estate, in syndicated structures, with the potential to deliver returns in the future.
- Segregated mandates: Our real estate sourcing and structuring methods allow you to build and maintain a fully flexible, diversified, and bespoke real estate portfolio that’s directed by your real estate investment desires.
If our real estate services are something you’re interested in choosing, please speak with your Relationship Manager for more information.