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Velling posted an update 2 years, 1 month ago
Family offices hold an immense amount of wealth worldwide, and they have a keen interest in commercial real estate investment. Unfortunately, finding ways to connect with this highly sought-after investor base can prove challenging.
Family office investors have recently started to get more involved with direct property investments through clubbing, which involves teaming up with a fund or sponsor to invest in deals that would otherwise be unavailable to them as individual investors.
Family offices have begun to invest directly in real estate by investing in luxury properties. This trend has been fuelled by the fact that more families are looking to allocate a portion of their wealth towards purchasing property.
Family offices often invest in real estate as a way to diversify their portfolio and reduce asset volatility. Furthermore, it helps them stay abreast of market trends and developments.
Over the years, family offices have increasingly invested in real estate as it provides both short- and long-term returns.
Family offices are becoming more aware of the significance of sustainability and ethical investments . This is because many families want to ensure their children and grandchildren inherit a better world than they found it.
Some family offices are even using their real estate holdings to help support other families through charitable donations and philanthropic programs, according to Jared Epstein, co-founder of Aurora Capital Associates. This can have a broader and more beneficial effect on the communities where they operate, according to Epstein.
Family offices are increasingly investing in digital financial assets, such as crypto currencies, private equity and real estate investment trusts (REITs).
These investments offer high returns with minimal risk. Unfortunately, they can also be complex and require extra research before investing.
Family offices must ensure they select an investment partner who will aid in reaching their objectives while offering them a superior experience. Furthermore, searching for someone with a proven track record and transparency into fees and performance is essential.
For instance, the FORE Partnership is a London-based co-investment program tailored to family offices. Through their direct co-investment in real estate model, family offices can invest alongside other global family offices.
Moreover, the FORE Partnership provides a convenient platform for family offices to invest in commercial real estate without having to manage any of the associated operational hassles that often accompany ownership of such an asset.