Real Estate Investment Opportunities for Family Offices
Information
For family offices, the current period of uncertainty is of course a challenge, but it may also be a time of tremendous opportunity.
If the typical priority is to maintain and grow a family fund’s wealth for the benefit of both present and future generations, can family offices move fast enough to adapt to the new market environment and out-manoeuvre the competition from institutional investors?
Portfolio rebalancing may have become a more immediate necessity for wealth preservation, but is there sufficient stock of sufficient quality entering the market for purchase? And do typical lot sizes suit a family fund better than an institutional purchaser?
How easy is it to balance sectoral diversity with critical mass across the sectors? Do family funds have the resources and expertise to manage and maintain a well-diversified portfolio? And what is the effect of geography? How does a family office balance geographical diversity and manageability while maximising opportunities? And do the increased management costs of a dispersed portfolio outweigh enhanced returns, or does diversification win the day?
