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Sizing up the opportunity: Opportunistic strategies are on the move again — but they remain as risky as ever
- July 1, 2024: Vol. 18, Number 7

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Sizing up the opportunity: Opportunistic strategies are on the move again — but they remain as risky as ever

by Chris Anderson

How often do investors find the perfect entry point in real estate — that moment when you can buy cheaply during a downturn yet still feel confident of a healthy return when prices bounce back, which they could do fairly quickly? In truth, very rarely.

Now, however, could be one of those junctures in the current cycle. Recent changes in the real estate landscape are now creating these opportunities, and this, in turn, is shining a spotlight on opportunistic funds.

Robert Červinka, head of special situations at ActivumSG, outlines what has happened in the market. “There is a repricing going on,” he says. “Valuations have fallen as much as 25 percent due to a number of reasons.

“We had valuations rising rapidly over the past few years, fueled by low interest rates. Many in real estate that benefitted initially from this ultra-low-rate environment overleveraged, only to now find themselves confronted with a steep reversal in monetary policy. This has tra

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