CRE Debt can be a 'superfood' for any investment portfolio
As featured in Preqin's 2018 Global Real Estate report, Jack Gay, Global Head of Commercial Real Estate Debt, talks about the factors that make debt appealing, significant routes to investment and the regional dynamics and regulatory environment in both the US and Europe.
For real estate investors seeking secure returns, private debt is an increasingly inviting strategy given the current environment, which is marked by low returns from fixed income investments, high prices for equity investments that may appear risky and political uncertainty in many regions. "The sector is becoming more mainstream than it was five to seven years ago. Commercial real estate (CRE) debt used to be more of a niche play and now an allocation is becoming part of institutional investors’ fundamental line-up," says Jack Gay. Gay has dubbed debt the real estate investment industry's 'superfood.' "It may not be as appetizing as equity, but it’s really good for your portfolios."