Launched in October 2023, this paper will familiarise market participants with OpRE, to better incorporate these strategies into their institutional vehicle structures and investment governance. Read this paper to learn about OpRE merits, working models, the risk/return profile and tax and regulatory considerations. Key highlights include:
OpRE investments can provide higher cashflow distributions and business value, but entail a unique risk return profile, which may require greater time commitment and some level of critical mass to reach efficiency;
OpRE results in the investor having control over different elements of the asset’s utilisation, which can potentially be used to generate non-financial benefits, such as positive ESG outcomes;
To effectively navigate the complexities of OpRe, there is a need for market transparency and best practice guidance.