09 Dec 2019

Investors and their commitment to real estate


According to a study, the three management modalities in indirect real estate investment funds, which invest in Europe, directly obtain more than 30%, resulting in a higher return. These are;

1. SOCIMI (Listed Companies of Real Estate Investment) are listed companies whose main activity is the acquisition, promotion and rehabilitation of urban assets for their lease, either directly or through shares in the capital of others.

2. The real estate crowdfunding, consists of a system of micro investments in the real estate sector through platforms that is responsible for selecting and executing the investments, normally, buying real estate to reform and sell them later.

3. The FII, Real Estate Investment Fund, is an investment fund that invests primarily in real estate assets for rent. Therefore, these investment funds have a high degree of liquidity independently of their profitability.

Once defined, we will review the best-known European companies that manage these investment portfolios.

 

In Germany, Vonovia is the largest residential property company, listed on the DAX (the index that houses the 30 largest companies in the country) since September 2015, after a a merger between two well-known German real estate agencies. Since then, Vonovia has done nothing but record profits.

The German is also another of the big bets of the second real estate investment fund that invests in Europe and that registers more profits so far this year. Belonging to the AXA company, the Framlington Europe Real Estate Securities rises almost 27% this 2019.

Morgan Stanley is another of the big managers who are seeing their profits increase with their European real estate funds.

The European Property Fund registers a rise of more than 25% so far in 2019. This fund, which also invests in Vonovia, maintains its main commitment to a French real estate agency, Unibail-Rodamco-Westfield, which is currently the first listed group of the commercial real estate sector in Europe.

Unibil-Rodamco-Westfield is present in the portfolios of virtually all investment funds that obtain a better performance so far this year.

The British Segro, which is a SOCIMI, which manages department stores and industrial properties in the United Kingdom and in continental Europe. The company is currently listed on the FTSE 100 index, which includes the 100 largest companies listed in the United Kingdom.

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In Equus Mallorca we bet on investment opportunities by make work easier these investments funds  in order to search for properties. Therefore, we help the comprehensive management of investments in real estate assets for large assets and institutional investors.

We search and select the most profitable real estate assets adjusted to the risk profile and strategy of our clients, both for traditional sale, purchase of housing with the objective of renting, as investment through socimis, crowdfunding or other investment funds, analyzing the real estate of the asset: physical state, environment, market trends and comparable transactions.

 

Source of information: Idealista.