Real Estate Secondaries
Unlocking Opportunities: A Deep Dive into Real Estate Secondaries
February 6, 2025
We are heavily focused on real estate secondaries, a crucial yet often underexplored facet of the real estate investment landscape. As the real estate market continues to evolve, secondary transactions involving both General Partners (GP) and Limited Partners (LP) have gained prominence, offering unique opportunities for liquidity, risk management and portfolio optimization. GP secondaries typically involve the sale of interests in a real estate fund by the fund manager, allowing them to navigate changing market dynamics or reallocate capital. Conversely, LP secondaries enable investors to buy or sell their stakes in existing real estate funds, providing an avenue for enhanced liquidity and strategic repositioning in their investment portfolios.
This collection delves into the nuances of these secondary markets, examining key trends, valuation methodologies and the various factors influencing transaction dynamics. By highlighting expert insights, and market analyses, we aim to equip investors with the knowledge needed to navigate the complexities of real estate secondaries.
Insights
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Investment Perspectives
Our View: Best Opportunities in Global Real Estate for 2025
The best global real estate investment opportunities in 2025 will be found where macro conditions, secular tailwinds and evolving sector use cases intersect with high-conviction strategies, operational expertise and skillful execution.
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Enhanced Return Opportunities
Secondaries Investing Is an Underutilized Risk Mitigation Tool for Real Estate Investors
The advantages of real estate secondaries from a buy-side and sell-side perspective.
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Investment Perspectives
The Bright Future for Secondaries
The secondaries market has the potential to provide investors with a number of advantages amid the challenges of the current market.
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More than US$23.4 billion worth of global real estate secondaries transactions closed in 2023 - 2.3x greater than existing market consensus estimates of roughly US$10 billion1, according to a new artificial intelligence (AI)-enhanced data capture methodology developed by CBRE Investment Management (CBRE IM), a global leader in real assets investment management.
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Enhanced Return Opportunities
Replay - Secondaries Investing Is an Underutilized Risk Mitigation Tool for Real Estate Investors
Our recent webcast "Secondaries Investing Is an Underutilized Risk Mitigation Tool for Real Estate Investors" features insights from Kilian Toms, Managing Director at CBRE Investment Management, and Michael Yang, Senior Managing Director at CBRE Investment Banking. This engaging discussion explores the growing significance of secondaries investing from both the “buy-side” and “sell-side” within the real estate sector.
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Investment Perspectives
Secondary Transactions Are Transforming the Real Estate Market
The secondary market is increasingly providing access to some of the highest-quality assets in the broader real estate market at discounted prices with less risk.
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CBRE Investment Management has secured a new finance facility for its indirect secondaries strategy, to be delivered by RBS International (“RBSI”), part of the NatWest Group.
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Market Research
Chart of the Week
Chart of the Week details economic data and commentary from our Research and Investment teams on the market and investment trends of the day.
Related Strategies
- Real Estate Secondaries
Real Estate Partners Solutions
Builds portfolios of secondaries investments in high-quality and often rarely traded sectors.