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What is non-listed real estate?

There are three ways of investing in real estate: direct (buying assets); listed vehicles (on the stock exchange); or non-listed / unlisted vehicles (not on any stock exchange). Non-listed real estate vehicles are less well known, but they provide access to a wide range of opportunities. From funds to joint ventures, non-listed real estate products can take many forms and target a variety of strategies, bringing in returns from different sources.

 

Why invest in non-listed real estate?

 

Investing in non-listed / unlisted real estate funds and other vehicles can be just as beneficial (and offers the same level of assurance) as any other real estate investment. Non-listed vehicles are part of both the overall real estate industry and the alternative asset class mix. Why restrict yourself to direct and listed real estate when there are clear benefits to investing in non-listed?

 

 

Diversify your real estate portfolio

 

Access a wider range of sectors and specific markets

 

Give investors access to specific management expertise

 

Create bespoke strategies and governance structures

 

How to invest in non-listed real estate?

 

Investing in non-listed / unlisted funds and other vehicles is just the same as making any other kind of investment – there is nothing more risky about it. On the contrary – non-listed vehicles are proven to diversify risk and bring in different returns to a portfolio. Investing in non-listed real estate follows a simple process:

 

Set an investment strategy based on your risk and return expectations, liquidity requirements and investment timetable

Execute against that strategy by choosing the right investment vehicle, style, structure and fund manager

Monitor and report on the progress of the investment

 

The importance of real estate to the economy

The commercial property industry directly contributed EUR 427 billion to the European economy in 2021, representing about 2.8% of the total economy, which is comparable to the combined size of the European automotive industry and telecommunications sectors. It employs 4.2 million people, which is more than the combined employment of the auto manufacturing industry and the telecommunications sectors and equivalent to banking. The commercial property industry's economic contribution continued to grow in 2021, absolutely and as a share of the total economy. Total employment proved resilient to the global pandemic with a particular upswing in employment construction, development and the repair of buildings. 

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