Operational Real Estate
Operational real estate is a rapidly developing area of the real estate market, demanding an evolution in market practice and the skill sets of those working and advising in it.
Our real estate team is adept at advising on the unique legal and tax risks and structuring considerations that operational investments present, having advised on some of the largest transactions of this nature in the market in recent years.
Operational assets provide real estate investors with access to diversified revenue streams beyond traditional rental income, creating an attractive yield profile and potentially also the ability to capture the upside associated with a well-run operating business.
Operational investments may be accessed through a spectrum of different approaches, from at the simplest end of the spectrum, turnover leases, to entry into joint ventures or management agreements with operators, to at the other extreme, taking an ownership stake in the operator itself and creating a “vertically integrated” platform.
Access our new operational real estate report
The team has produced a first-of-its-kind report in conjunction with Montfort Communications in response to the growing awareness of the role that operational real estate plays in today’s market, to identify the market opportunity and key considerations, and challenge some of the misconceptions.
Over the past six months we have interviewed a variety of market-leading stakeholders, including investment managers, operators, specialist asset managers, advisers and lenders and collated their perspectives and insights. The result is a deep dive into today’s operational real estate market, including the scale of the market opportunity, an analysis of how such investments may be accessed and an overview of some of the key structuring and governance issues market participants are grappling with.
Whether you’re a new entrant to the operational real estate market or an experienced participant, the report provides a useful reference point and stimulates further conversation about how the real estate investment market is evolving.