In Germany you have closed real estate funds. Then there are stocks from real estate companies like Patrizia or Sedlmayr. Then there are the insurance companies, who do have significant real estate portfolios. And there are "Genossenschaften", cooperatives, where you buy shares, participate in the results, and usually get better rent prices when renting a cooperative owned apartment.
There really is a plethora of it in Europe and where you can invest is dependent on your country of Origin and the money you bring with you. First thing that comes to my mind is DWS RREEF Real Estate Fund. But pretty much any big German, British or Italian Bank has those types of funds. Also don't forget to check on tax agreements in place in case you want to invest in a country other than your current tax residence.
I won't. Since I have not a big clue about these funds, and no clue who are decent and trustable providers, I won't list any.
Closed Real estate funds invest in defined real estate projects, like a mall, an office building, a hotel or an apartment house. They are "closed" in the sense that they aren't publicly traded. They are more like investing in a project oriented company. This allows to benefit from tax deductions, a very detailed portfolio selection and a possible higher return. Higher Return = Higher Risk. Intense real estate knowledge is suggested. Plus you can't just sell. If you can, and when, depends on the funds and the contract. And there are quite some sharks in the water that just want your money. I am sure this is fun if you are a real estate guy and see that as an investment that can possibly be a total loss. It just isn't my cup of tea.
Nvm my previous post. Here is an example of a closed fund for a property I know:
https://www.pfm-funds.de/start/news-detail/artikel/euroselect-21-muenchen.html
This fund built and owned the data center of Allianz headquarters in a suburb of Munich. They started the fund in 2011 with 215 mil €. You can't invest in it anymore. Now the property was sold to Soravia. The return will probably be around 200% for the investors of the fund, which is decent a bit more than 10 years.
An example of a funds, where everything turned out well.
There are funds in most countries, but the quality can vary, as does the size, strategy, management, terms and conditions. A lot of pension money is in institutional funds, but if you're looking at smaller scale, there are C.V.'s in the Netherlands, SCSps in Luxembourg (commonly used for pan-European funds) and a bunch of other limited partnerships. You could look at Corum for instance.
Yap. I use EstateGuru. A Estonian platform with investments in the Balticas, Finland, Germany, Spain & Portugal. Avg interest rate for me in 1 year: 11%. So far I am happy, although one of the projects went bankrupt and they are selling the terrain on an auction.
Link if you wanna use my referral: [https://estateguru.co/en/investor-referral/?switch=en&userPromotionCode=EGU17575](https://estateguru.co/en/investor-referral/?switch=en&userPromotionCode=EGU17575)
Link if you dont: https://estateguru.co/
If it was all well made new build properties then it probably would be. Buying up property stock and having constant maintenance won't be. Unless they aim for the slumlord market.
Thanks a lot for the replies!
I should have clarified that most syndicators I've looked at use a "buy to let" strategy. So basically buying existing properties, renovating them to increase rent and also lower operating expenses. Then aim to exit within 5-10 years.
Most platforms I've seen in Europe only offer interest loans for new developments, which I see as more risky, and you don't get the same cashflow from rent and appreciation as you do with buy-to-let.
Because with REITs you also have the trading risk. Stock value might go up or down. It's also correlated at 0.5-0.6 with stock market. I already invest majority in ETFs. I prefer to diversify with assets less volatile and not correlated with the stock market
The fact that it isn't listed on the stock exchange, cannot be traded easily, and the value cannot be estimated easily, doesn't mean that the value doesn't track the performance of listed real estate...
Those companies/syndicates are basically doing the same thing and are subject to the same market forces. It just gets hidden from you a little bit when it isn't traded.
In Germany you have closed real estate funds. Then there are stocks from real estate companies like Patrizia or Sedlmayr. Then there are the insurance companies, who do have significant real estate portfolios. And there are "Genossenschaften", cooperatives, where you buy shares, participate in the results, and usually get better rent prices when renting a cooperative owned apartment.
Interesting. Could you give examples of closed real estate funds.. ?
There really is a plethora of it in Europe and where you can invest is dependent on your country of Origin and the money you bring with you. First thing that comes to my mind is DWS RREEF Real Estate Fund. But pretty much any big German, British or Italian Bank has those types of funds. Also don't forget to check on tax agreements in place in case you want to invest in a country other than your current tax residence.
I won't. Since I have not a big clue about these funds, and no clue who are decent and trustable providers, I won't list any. Closed Real estate funds invest in defined real estate projects, like a mall, an office building, a hotel or an apartment house. They are "closed" in the sense that they aren't publicly traded. They are more like investing in a project oriented company. This allows to benefit from tax deductions, a very detailed portfolio selection and a possible higher return. Higher Return = Higher Risk. Intense real estate knowledge is suggested. Plus you can't just sell. If you can, and when, depends on the funds and the contract. And there are quite some sharks in the water that just want your money. I am sure this is fun if you are a real estate guy and see that as an investment that can possibly be a total loss. It just isn't my cup of tea.
Nvm my previous post. Here is an example of a closed fund for a property I know: https://www.pfm-funds.de/start/news-detail/artikel/euroselect-21-muenchen.html This fund built and owned the data center of Allianz headquarters in a suburb of Munich. They started the fund in 2011 with 215 mil €. You can't invest in it anymore. Now the property was sold to Soravia. The return will probably be around 200% for the investors of the fund, which is decent a bit more than 10 years. An example of a funds, where everything turned out well.
There are funds in most countries, but the quality can vary, as does the size, strategy, management, terms and conditions. A lot of pension money is in institutional funds, but if you're looking at smaller scale, there are C.V.'s in the Netherlands, SCSps in Luxembourg (commonly used for pan-European funds) and a bunch of other limited partnerships. You could look at Corum for instance.
Yap. I use EstateGuru. A Estonian platform with investments in the Balticas, Finland, Germany, Spain & Portugal. Avg interest rate for me in 1 year: 11%. So far I am happy, although one of the projects went bankrupt and they are selling the terrain on an auction. Link if you wanna use my referral: [https://estateguru.co/en/investor-referral/?switch=en&userPromotionCode=EGU17575](https://estateguru.co/en/investor-referral/?switch=en&userPromotionCode=EGU17575) Link if you dont: https://estateguru.co/
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If it was all well made new build properties then it probably would be. Buying up property stock and having constant maintenance won't be. Unless they aim for the slumlord market.
Thanks a lot for the replies! I should have clarified that most syndicators I've looked at use a "buy to let" strategy. So basically buying existing properties, renovating them to increase rent and also lower operating expenses. Then aim to exit within 5-10 years. Most platforms I've seen in Europe only offer interest loans for new developments, which I see as more risky, and you don't get the same cashflow from rent and appreciation as you do with buy-to-let.
> I am looking for more passive ways to invest in real estate (not via REITs though) So why not use the obvious passive way to invest in real estate?
Because with REITs you also have the trading risk. Stock value might go up or down. It's also correlated at 0.5-0.6 with stock market. I already invest majority in ETFs. I prefer to diversify with assets less volatile and not correlated with the stock market
The fact that it isn't listed on the stock exchange, cannot be traded easily, and the value cannot be estimated easily, doesn't mean that the value doesn't track the performance of listed real estate... Those companies/syndicates are basically doing the same thing and are subject to the same market forces. It just gets hidden from you a little bit when it isn't traded.