Some time ago, I participated at the PERE real estate conference in Paris. The conference as such was very well organised and I already look forward to the next edition. I feel it’s opportune to share some learnings for real estate investors and family investors, as superbly summarized at the end of the conference by Basil Demoroutis of the Fore Partnership.
First of all, the different panel discussions seemed to confirm that there currently is a “wall of money” chasing yield generating properties. It was felt that this was distorting the market for private investors and family offices, who simply don’t have the deep pockets of pension funds, insurers and other institutional investors. Secondly, the good news was that there still is a scope for private investors through cherry picking, mainly in the deals not big enough for the institutional investors yet too large for the retail property investor. And for that, there is no substitute to local knowledge when it comes to cherry picking. For these reasons, there was great interest between the family offices for co-investing deals.