IPF Research - Operational Real Estate (February 2021) Webinar Slides
Deal volumes and allocations are increasing for operational real estate (ORE), as more specialist and core style funds add this type of investment to their portfolios, attracted by the prospect it offers to capture the extra upside associated with a well-run business or a newly emerging business model. However, ORE has been seen as complex, illiquid and opportunistic and the sector lacks clarity and consistency in how to approach the issue of risk when pricing operational assets.
This webinar provides members with the opportunity to hear first-hand from the authors of this study, which identifies what constitutes ORE and how real estate investors assess and quantify risk when underwriting an ORE investment opportunity. The research examined both the theoretical approach to underwriting such investments and compare that with current market practices in the sector, recognising potential gaps between theory and practice in assessing and quantifying risk in the ORE sector, and concludes with a recommendation on what should constitute “best practice” for investors and real estate practitioners when appraising ORE investment opportunities.