does not necessarily need immediate cash-flows from herinvestments. Her investing profile can be characterized ashigher-risk, higher return, no immediate income frominvestment is necessary, high potential gains in later years(targeting appreciation), and currently would like investmentswith tax shelter capabilities due to current high ordinaryincome from other sources.
Real Estate Industry:
Ininvestment finance, private equity real estate is anasset
classconsisting of equity and debt investments in property.Investments typically involve an active management strategyranging from moderate reposition or releasing of properties todevelopment or extensive redevelopment.Investments are typically made via private equity real estatefund, acollective investment scheme, which pools capital frominvestors. These funds typically have ten year life spanconsisting of a 2-3 year investment period during whichproperties are acquired and a holding period during whichactive asset management will be carried out and the propertieswill be sold.Private equity real estate funds generally follow core-plus,value added, or opportunistic strategies when makinginvestments.
This is a moderate risk/moderate return strategy. The fund will generally invest in core properties however someof these properties will require some form of enhancement orvalue-added element.
This is a medium-to-high risk/medium-to-highreturn strategy. It will involve buying a property, improving it insome way, and selling it at an opportune time for a gain.Properties are considered value added when they exhibitmanagement or operational problems, require physicalimprovement, and/or suffer from capital constraints.