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Family Offices Investing in Real Estate

by Forena Akthar

  • 11 Jul 2012
  • RE

Family offices, which are often known to be secretive institutions, are a noteworthy investor group in alternative assets, including real estate. Preqin holds information on 109 family offices investing in the real estate asset class – over half of these are single family offices and the remainder invest the assets of multiple wealthy families and individuals. In terms of geographic location, 47% of these family offices are based in North America, with a further 41% in Europe and the last 12% in Asia and Rest of World.

Due to their reluctance 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 two thirds of family offices are known to commit to private real estate funds and 59% invest directly in real estate. With regards to private real estate fund investments, this investor group is open to investing in a wide range of locations and fund strategies. Only 14% are known to allocate to listed real estate, making this the least favoured route to market for family offices investing in property.

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