Family offices delving into newly-emerging markets to get a hold of financial gains as a countermeasure after the Federal Reserve and the other central banks easing their grips on fiscal policies is the most recent news reported by the Financial Times.
This article mainly focused on family offices who invested in the US real estate market. Specifically, it highlighted a recent report from the US-based Family Office Exchange which suggested that family offices are re-evaluating traditional investment opportunities, such as public bonds and equity markets and instead of turning their attention to direct investments in real estate and operating businesses.
The UK real estate market is also benefiting from this investment trend with family offices building up significant portfolios of the UK commercial and residential real estate assets. A low-interest-rate environment combined with weak sterling exchange rates is making UK real estate assets a particularly attractive investment opportunity for international family offices seeking meaningful returns.
Although it is popularly acknowledged that the UK commercial real estate market is at a late-cycle stage with familiar concerns about high values and scarcity of suitable assets, the investment appetite of family offices for virtually all sectors of the UK real estate market – offices, residential, student accommodation, logistics, retail and hospitality still goes on without any sign of stopping.
