Family Offices Investing In Real Estate

by Forena Akthar

  • 27 Apr 2011
  • RE

Family offices are extremely secretive institutions and are a noteworthy investor group in alternative assets, including real estate.  Preqin holds information on 83 family offices that invest in the private equity real estate asset class, with half of these being single family offices and the other half investing the assets of multiple wealthy families and individuals.

In terms of geographic location, 56% of these family offices are based in North America, 36% are based in Europe, and 8% are located in Asia and Rest of World. The single family offices are split 51% in North America, 37% in Europe and 12% in Asia and Rest of World, while the multi-family offices are split 59% in North America, 36% in Europe and 5% in Asia and Rest of World.

Due to their secrecy and unwillingness to disclose information relating to investment activity, it is difficult to determine the size of these investors in terms of assets under management, and their allocation to particular asset classes.  However, Preqin data shows that 80% of family offices invest directly in real estate and 20% do not make direct allocations to property. 87% of family offices invest in private real estate funds and a further 4% will consider making such investments.  Only 9% of this investor group will not commit to private vehicles.

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