Investment Perspectives - Spring 2022
The attractiveness of real estate debt
19 May 2022
Commercial real estate debt refers to loans backed by real estate. A large proportion of investment in real estate is financed by a combination of equity and debt. Unlike equity owners, debt holders generally intend to be passive investors, earning an agreed interest rate throughout the life of the investment and repaid at maturity of the loan.
This article looks at why investors should consider an investment in real estate debt as part of a well-diversified portfolio, and how the asset class stacks up relative to equivalent rated corporate bonds and to equity investment in property.
We also touch on how the market has evolved over recent years, what is driving the investment opportunity and potential considerations for investors.
Read the article on how real estate debt can be an attractive investment.
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