Your assignment is to prepare and submit a paper on constructing an international real estate portfolio. Implementation complexities in constructing an effective portfolio possess risk factors, which make it necessary for crucial exposure and assessment of opportunities for the investment in the international real estate market.
There has been an increase in international investments especially in international real estate markets, which is clear from the UK listed and unlisted wholesale markets. It is evident that most products fall under the value-added or opportunistic and risk or reward. hence they offer a wide range of the investments returns. The international listed real estate funds have different collective strategies according to different regions as indicated by fig.1.
There is a variation of real estate types depending on the countries or country targeted. Consequently, there are different ways of gaining exposure to the investable market. Various options are employed to acquire and manage equity interests for international real estate investments. The aim of the paper is to discuss the advantages and disadvantages of applying various methods for gaining exposure to the real estate investments. In addition, it evaluates the different methods used to fully acquire and manage equity interests in international real estate investments.
Real estate refers to. the commercial sectors of office, retail, industrial, and leased residential real estate sectors. The real estate appraisers in the UK reflect value of asset factors such as expected income growth, risk of liquidity, management costs, income growth related risks, and the tenant default risk that enables the capitalization of the current and future income expectations and streams. This indicates that the international real estate investment can offer a number of investment features that have different risk levels.