Evolving real estate jurisdictions
In recent years we have seen a move away from commingledreal estate funds and a swing in popularity towards director joint venture deals. Currently, there seems to be another shift again as commingled real estate funds are rising back into popularity. These type of pooled funds provide smaller institutional investors with an opportunity to enter or re-enter the market. Competition for core assets has also intensified due to the growing capital chasing a relatively limited number of assets.
This has led many investors to invest in more secondary assets and other areas of real estate such as retirement living, private rental accommodation, ground rents and student accommodation to provide their investors with opportunities to better returns. In order for these types of real estate investments to provide attractive returns lot sizes are usually large and generally via regulated fund vehicles. Such vehicles are often caught by the implications of increased regulation.