The real estate market may seem ripe for value-added investing, but the playbook has changed since the time following the global financial crisis, when investors could readily buy properties below fundamental values, leverage them and exit to core investors in a recovering economy. “That game is not working in the current downmarket,” says Stefan Wundrak, head of European research with Nuveen Real Estate, in a report titled “The smart value-added investor.” Published in the December issue of Institutional Real Estate Europe, the report outlines the tools today’s value-added players will need to succeed in the current market. “The turbulence as financial markets rely on cheap debt has been exposed and will create winners and losers and plenty of opportunity for conviction investors, as long as they are not shying away from complex workouts,” says Wundrak. “A simple buy-low-sell-high approach will not cut it in this environment.” To access a pdf of the Spons
