Real Assets

Real assets are composed of two asset classes with unique distinctive features in the asset management landscape: real estate and infrastructure. In this chapter, we will analyse the real estate market in its entirety and, subsequently, the investment vehicles in equity real estate. Beyond this institutional view, the chapter analyses the asset management strategies that can be implemented in this sector. The risk and return profile of real estate as an asset class is intrinsically tied to the process of value creation typical of the various strategies used by managers. Investment in real estate is highly specific and therefore the chapter examines in detail the factors underlying the valuation of real estate. Once the theoretical framework and the operational techniques used to measure the value of real estate have been defined, an analysis of the risks and returns associated with the investment vehicles in this asset class is undertaken. The phenomenon of discount-to-NAV in listed real estate investment vehicles is object of an in-depth examination. Subsequently, the theme of infrastructure investment will be explored in depth, evaluating its implementation methods and the returns and risks associated with it.