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OPPORTUNISTIC REAL ESTATE: HIGH RISK, HIGH RETURN

With appetite for higher-risk strategies increasing in the search for high returns, opportunistic private real estate funds are of growing interest to investors. We take a look at the risk/return profile associated with the strategy. Access the article to find out more on page 2.

REAL ESTATE INVESTOR UPDATE…

This article will cover:

OPPORTUNISTIC REAL ESTATE: HIGH RISK, HIGH RETURN

With appetite for higher-risk strategies increasing in the search for high returns, opportunistic private real estate funds are of growing interest to investors. We take a look at the risk/return profile associated with the strategy

REAL ESTATE INVESTOR UPDATE

This excerpt from the newly released Preqin Investor Update: Alternative Assets, H2 2018 details investors’ real estate investment plans for the year ahead, including their next planned commitment as well as the regions and strategies presenting the best opportunities. Access the article to find out more on page 4.

The GPR/APREA AsiaPac Performance Snapshot tracks the dynamics of listed real estate securities (including REITs) across 12 AsiaPac countries/regions and eight sectors, over multiple time horizons.

• The AsiaPac equities asset class was the top total return performer in September 2018 and on a three-year basis.
• REITs were the strongest performing asset class over a one year, 5-year and 10-year horizon.

The private equity (‘PE’) landscape is of significant importance to the UK economy, with PE investment in the UK exceeding €27 billion in 2017, nearly double the figure we saw deployed in 2016.

Consistent feedback from investors, as evidenced by the successes and failures of recent years is that the strength of the management team behind a business is key to what a portfolio company actually achieves.

So how do you attract and motivate a management team in a private equity portfolio company? We regularly see headlines about executive pay in listed companies, and there is readily accessible information in PLC remuneration reports, but less information and less disclosure is available in the context of privately owned and private equity backed businesses.

In response to this, KPMG have…

The private equity (‘PE’) landscape is of significant importance to the UK economy, with PE investment in the UK exceeding €27 billion in 2017, nearly double the figure we saw deployed in 2016.

Consistent feedback from investors, as evidenced by the successes and failures of recent years is that the strength of the management team behind a business is key to what a portfolio company actually achieves.

So how do you attract and motivate a management team in a private equity portfolio company? We regularly see headlines about executive pay in listed companies, and there is readily accessible information in PLC remuneration reports, but less information and less disclosure is available in the context of privately owned and private equity backed businesses.

In response to this, KPMG have undertaken a survey of both PE investors and management teams to ask them some of the questions we thought you would like to know about the role of reward in a PE portfolio company. Our findings and insights coming from them are contained in this report.

Real estate sector in India has traditionally been lagging behind other sunrise sectors in adopting new technologies. However, due to major government reforms such as RERA and GST there has been consolidation in the sector and reputed developers sense an opportunity to expand their scale of operations. This expansion needs to be backed by various technological interventions to ensure improved efficiency and transparency, which will help in achieving the ultimate goal – customer satisfaction. We are already witnessing a sea change in the way our industry is embracing and adapting to innovative designs, planning tools, software and technologies that provide better control over construction progress and ensure quality within defined budget. We are also using analytics to track and understand customer preferences. I am personally very delighted to be on the cusp of a digital revolution in our sector which will potentially transform the way we operate. – Vikas Oberoi Chairman & Managing Director, Oberoi Realt

2018 is proving to be a turning point for the Indian real estate sector in many ways. With the current government’s renewed focus on affordable housing, game changing regulatory reforms, and infrastructure status to warehousing, business sentiment has been positive.

 2018 is proving to be a turning point for the Indian real estate sector in many ways. With the current government’s renewed focus on affordable housing, game changing regulatory reforms, and infrastructure status to warehousing, business sentiment has been positive.

The private equity investments in Indian real estate improved 15 per cent year-on-year in JanuaryMarch 2018 reaching USD3 billion1 billion and are estimated to grow to USD100 billion by 20262 with tier 1 and 2 cities benefiting the most in future.

The GPR/APREA AsiaPac Performance Snapshot tracks the dynamics of listed real estate securities (including REITs) across 12 AsiaPac countries/regions and eight sectors, over multiple time horizons.

• August results revealed a clean sweep for Asia Pac REITs, which outscored rival asset classes over all time horizons.

The GPR/APREA AsiaPac Performance Snapshot tracks the dynamics of listed real estate securities (including REITs) across 12 AsiaPac countries/regions and eight sectors, over multiple time horizons.

• All asset classes posted positive total returns in July – REITs were the strongest performers.
• Listed real estate, equities and bonds posted positive returns of 0.8%, 0.9% and 0.1% respectively verse REITs at 1.6%.