Investors stick to incumbent RE managers and remain under-allocated – survey

Uncertainty in the markets and travel restrictions are deterring institutional investors from forging new relationships with real estate investment managers.

According to a survey of more than 100 investors, only 17% are willing to consider investing with new managers and 18% are putting on hold the establishment of new relationships.

Real estate advisory firm Hodes Weill & Associates, which carried out the research, said: “The unique challanges assoicated with lockdowns and travel restrictions have hindered investors’ abilities to conduct due diligence on new strategies and relationships”.

But while 59% of investors anticipate a slowdown in investment activity over the next 12 months, many are beginning to allocate capital to take advantage of anticipated distress over the coming years.

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