The cross-border real estate co-investment playbook
GCC and international investors are shifting from listed REITs to co-investment SPVs to access European real estate, driven by enhanced control, direct exposure, and reduced management fees. This playbook explores the mechanics of cross-border real estate co-investment, from deal evaluation to documentation, with a detailed case study of a London residential development SPV.
The Shift from REITs to Co-investment SPVs
The landscape of international real estate investment has fundamentally changed. GCC sovereign wealth funds, family offices, and institutional investors are increasingly bypassing traditional listed REITs in favor of direct co-investment through Special Purpose Vehicles (SPVs). This shift reflects a strategic preference for enhanced control, reduced intermediation costs, and direct exposure to specific assets.
Listed REITs, while offering liquidity, carry inherent limitations that sophisticated investors find restrictive. British Land Company trades at a 40% discount to NAV as of Q3 2024, while Unibail-Rodamco-Westfield has struggled with leverage constraints and dividend cuts. These public vehicles expose investors to market se
Enter your email to read the full article
Free access — no sign-up required.