Operational real estate (OpRE) has greatly evolved in the last 10 years, but its current European landscape can be difficult to navigate with a lack of guidelines and established market practices. This paper is intended to familiarise market participants with OpRE, to better incorporate it into their institutional vehicle structures and investment governance.
Key highlights include:
- How OpRE investments can provide higher cashflow distributions and business value, but entail a unique risk return profile, which may require greater time commitment and some level of critical mass to reach efficiency.
- How OpRE results in the investor having control over different elements of the asset’s utilisation, which can potentially be used to generate non-financial benefits, such as positive ESG outcomes.
- Why there is a need for market transparency and best practice guidance to navigate the complexities of OpRE effectively.
Download the paper and snapshot below. You can also read our previous paper on the increasing appetite for investment into operational real estate.
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Operational Real Estate Paper 2023
Last updated on 17 Oct 2023