Why PERE requires a local manager

In an increasingly digitalised world, PERE professionals certainly benefit from the quantitative analysis and ever-improving algorithms performed on micro-markets across the world. Prop tech is a booming business and the data available for investors is instrumental in decision-making. Nonetheless, we feel it is important to keep sight of the value of the ‘human touch’ which local managers provide with their deep understanding of markets, a skill and service which goes beyond what one can read in a research report.

It is this nuanced understanding which is proving particularly valuable at the current phase of the cycle. With an abundance of dry powder in the market, investors are having to look beyond core assets for returns. Consequently, capital is being invested in opportunities positioned further up the risk curve. In these cases, diligent asset management is essential for opaque markets where a local presence is needed to ensure origination and execution of deals.

We have always appreciated the value which comes with a ‘boots on the ground’ manager, who can relay information on a given property, portfolio and specific market. These managers are integral in providing intelligence on what tenants are looking for, why a particular unit may be performing or underperforming, how local market conditions may affect an asset’s performance in addition, of course, to having a view on the property’s overall upkeep and maintenance. For assets in secondary cities or locations, this local touchpoint is particularly important to source and manage assets, as there may not be an abundance of pre-existing data or formal insight on that particular market.

We are delighted to work with clients who are specialists in their fields and do an excellent job of providing a local touchpoint to manage assets. To find out more contact the Real Asset Partners team on info@realasset.com or 020 3167 3380.