Family Offices keep the pulse of real estate investment

Family Offices keep the pulse of real estate investment

Colliers confirms the interest of family wealth in the real estate sector in the first quarter of the year. According to the consultancy, the residential sector, offices and prime premises linked to restoration activities will be the assets most in demand by these investors in 2021.

Family wealth invested 700 million euros in the real estate sector in 2020, approximately 7% of the total investment, but almost 50% less than in 2019. Colliers estimates that in 2021 the investment of family wealth will increase by 30 % compared to 2020.

«Long-term inflation expectations and lower interest in investment in sovereign debt, causes the investment interest of private equity to focus more on Real Estate. Madrid is configured as the main pole of attraction for these investments, both for Spanish wealth and for families of Latin American origin, mainly from Mexico », says Mauricio Guerrero, Director of Capital Markets at Colliers and responsible for Private Investors services. «In the first quarter of the year, we have advised purchase and sale operations for a volume of more than € 50 million, in which Family Offices have been the protagonists. These types of transactions tend to have in common that they are not very high-volume operations, but in which the search for creative solutions and value-added services are decisive for closing », indicates Guerrero.

As an example of this type of transaction, in the Residential market, Colliers has advised a family patrimony in the sale of a housing portfolio in Caños del Peral street (Ópera area, Madrid), which has been acquired by the SOCIMI Almagro Capital. In offices, Colliers has closed the sale of Velázquez 149 (Madrid) and a building in Las Rozas, both owned by two family offices, for more than 42 million euros.

«Despite the current circumstances, there is still a lot of interest in buying opportunities and in rotating the real estate assets of these investors to take advantage of the moment by adding new opportunities to their portfolios. Families are willing to invest, but now more than ever they are looking for the perfect product », stated Mauricio Guerrero, Capital Markets Director at Colliers.

«In addition to direct and equity investment, some family offices have stood out in recent years as expert investors in real estate niches. Their high management and co-investment capacity make them key elements in alliances and fundraising processes with institutional real estate investors », says Antonio de la Fuente, Managing Director of Corporate Finance at Colliers. «We are currently managing in the market the search for capital for family offices based in Spain for more than 400 million euros.”, Antonio de la Fuente concludes.

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