Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Real estate portfolio construction for a multi-asset portfolio
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management.ORCID iD: 0000-0002-1205-2129
2015 (English)In: Journal of Property Investment & Finance, ISSN 1463-578X, E-ISSN 1470-2002, Vol. 33, no 6, 548-573 p.Article in journal (Refereed) Published
Resource type
Text
Abstract [en]

Purpose – The purpose of this paper is to explore how tenant end demand dependence and investment market segmentation, as estimated through sector type, impacts real estate portfolio strategy in the context of the multi-asset portfolio. Design/methodology/approach – The analysis is performed for six investor domeciles, for domestic and international investments over several cycles. The analysis is performed in a mean variance framework. Findings – The findings are consistent with the hypothesis that an investor benefits from investing in real estate assets where end demand is dependent on local factors rather than global factors. Practical implications – The efficiency of the overall multi-asset portfolio benefits from a deeper understanding of how the real estate portfolio is constructed. Locally dependent real estate, i.e. real estate that is dependent on local economic factors, tends to better support the overall portfolio than do real estate that is dependent upon global factors. Originality/value – The paper contributes to the broader knowledge through extending earlier studies using similar methodology by extending the data series to cover the impact of the latest global financial crises, as well through extending the knowledge how the real estate portfolio should be constructed to better support the overall objectives of the multi-asset portfolio.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2015. Vol. 33, no 6, 548-573 p.
Keyword [en]
Asset allocation, Globally dependent real estate, Locally dependent real estate, Real estate, Real estate portfolio construction, Sector strategy
National Category
Economics and Business Construction Management
Identifiers
URN: urn:nbn:se:kth:diva-181256DOI: 10.1108/JPIF-02-2015-0013ISI: 000373190400006Scopus ID: 2-s2.0-84942326622OAI: oai:DiVA.org:kth-181256DiVA: diva2:902166
Note

QC 20160210

Available from: 2016-02-10 Created: 2016-01-29 Last updated: 2016-11-17Bibliographically approved
In thesis
1. Institutional Real Investments: Real Estate in a Multi-Asset Portfolio
Open this publication in new window or tab >>Institutional Real Investments: Real Estate in a Multi-Asset Portfolio
2016 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The purpose of this thesis is to analyze real estate investments from the vantage point of an institutional multi asset investor perspective, both in terms of the potential benefits real estate can bring as well as the challenges it can pose. The thesis consists of six papers and approaches the research question from three distinct perspectives.

The quantitative papers consists of paper 1 and 5. Paper 1 analyses the portfolio characteristics of domestic and international real estate in a mean variance framework over seven investor domiciles. It is found that the optimal allocation to real estate is in the range of 15-25 percent depending on domicile of the investor. The fifth paper expands the analysis in paper one by expanding the data. Furthermore, the analysis is extended to investigate how the structure of the real estate portfolio can support a diversification objectives best.

Papers 2, 3 and 4 are the market related papers. Paper 2 compares the suggested allocation weights with the allocation to real estate of institutions in four countries, and finds that the actual allocation is significantly lower and that all investor domiciles have a significant home bias. The third paper discusses changes in the institutional framework of real estate markets and the size of the investment universe. Paper 4 discusses various entry points to the real estate market, and how an investor can utilize these in order to adjust the characteristics of the real estate portfolio.

The sixth and last paper is qualitative, and investigates how institutions managing pension capital handle real estate. ​

Place, publisher, year, edition, pages
KTH Royal Institute of Technology, 2016. 37 p.
Series
TRITA-FOB-DT, 2016:5
Keyword
Real Estate Investment, Asset Allocation, Alternative Assets, Multi-Asset Portfolio
National Category
Economics and Business
Research subject
Real Estate and Construction Management
Identifiers
urn:nbn:se:kth:diva-196536 (URN)978-91-85783-71-7 (ISBN)
Public defence
2016-12-09, Kollegiesalen, Brinellvägen 8, Stockholm, 13:00 (English)
Opponent
Supervisors
Note

QC 20161115

Available from: 2016-11-15 Created: 2016-11-15 Last updated: 2016-11-16Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full textScopus

Search in DiVA

By author/editor
Lekander, Jon R. G. M.
By organisation
Real Estate and Construction Management
In the same journal
Journal of Property Investment & Finance
Economics and BusinessConstruction Management

Search outside of DiVA

GoogleGoogle Scholar

Altmetric score

Total: 113 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf