Compelling capital growth and income streams for family offices’ multigenerational ambitions

The inclusion of real estate in a family office portfolio assists in diversifying returns and deploying capital, especially given the comparably low correlation to public equity. Real estate is well-suited to diversifying family offices’ portfolios of stocks, bonds and other alternatives. Furthermore, real estate covers a wide range of investment strategies — from core and core-plus to value-added and opportunistic — as a function of risk and return. Real estate is especially attractive to many family offices (as well as other institutional investors) given the opportunity to generate stable and predictable cashflows from (fixed) leases and, as such, solid distributions. As a result, real estate returns typically may be less volatile than equity returns. In today’s times of low returns in almost all major asset classes and despite cap rates being close to their lowest levels in many key real estate markets, real estate — especially in key European markets — continues to