Due to minimal up-front capital, enhanced asset liquidity and discounted management costs, indirect real estate construes an intrinsic diversification quality for developing and managing real estate investment portfolios with ‘binding’ obligations being non-existent on investors. Although these attributes make it attractive for foreign investors, provisions for accessing relevant international markets are contingent upon the investor’s profile due to existence of restrictive legislative regimes and distinctive foreign investment policies.

Evidently, international indirect real estate markets endow beneficial diversification opportunities for individual and institutional investors through options for investment across different geographic regions, alternate industry sub-segments, and at various phases of real estate life-cycle. Despite of excessive diversification aiding in reducing systematic risks, investors perceive that this approach adversely impacts cumulative returns in their portfolio; hence, proficiency of the subject portfolio manager represents a critical aspect for optimizing returns.