New paper: Good practice recommendations for Operational Real Estate

Operational Real Estate (OpRE) continues to gain traction as investors look to unlock value through more active, service-driven strategies. Yet, OpRE structures bring distinct governance and alignment challenges that differ from traditional real estate investments.

To help the industry navigate this evolving landscape, INREV has published a new paper – ‘Good practice recommendations for Operational Real Estate’. The paper explores governance considerations, risk factors and structural variations across common ownership models, providing practical insights to support effective decision-making.

Key highlights include:

• Examination of three prevalent ownership models – investment manager-owned, fund-owned, and third-party-owned – and their implications for governance and control.
• Recommendations for ensuring clarity of roles, accountability and incentives between investors, managers and operators.
• Guidance on managing potential conflicts of interest and promoting transparency and accountability.
• Emphasis on adaptable frameworks that support resilience and effective exit strategies.

These good practice recommendations aim to support investors and managers in structuring OpRE investments through long-term value creation and strong alignment of interests.