The power of diversification in real estate

2023-12-18 09:44:53

“We are a conservative company for conservative clients,” is how Pablo Giunta defines $r. House, the company he founded several years ago. And he continues: “we specialize in investments in large-scale real estate projects in the United States, Germany, England and Spain for the institutional market.”

Pablo Giunta, what is the institutional market?

Above all, it is the most sophisticated and safest option to invest in real estate. It’s like Formula 1 or the Premier League of world real estate. It means that we think regarding each of the developments from the beginning, so that at the end of the process they are purchased by an investment fund. For example, instead of building a building in Miami and selling apartment by apartment, we build the building, then rent it and finally sell it when we have more than 90% of the units rented. In short, we offer a fully functioning real economy business. This process takes on average regarding three years and it is at that time that investors receive their returns.

What returns are we talking regarding?

Current projects yield an average IRR of between 10 and 16% annually. We have 15 years of experience and our average return rate is 15% annually. That number arises from a record track that includes dozens of deals in the United States and Europe.

Why do you have the word “diversification” in a box right in the middle of your office?

Because it is the basis of our investment strategy. I always use the same metaphor. An investment portfolio has to be a sea fleet, your own navy. Each of the assets you invest in is a ship. Your aircraft carrier is a multifamily in New York, your frigate is an industrial warehouse in Austin, your destroyers are storage or self-storage facilities in Atlanta or residential developments in Madrid.

So far in 2023 we have launched 15 projects, in the last year and a half we have already added 24 investment proposals. If you are our client, having entered in 2022, today you might be diversified by 24. You will be in seven countries, with different assets, in different markets, targeting different terms and having a balance between fixed income and capitalization. In addition to having a percentage of the portfolio in construction from “the well” and another part in the acquisition of real estate that are true opportunities. Diversification is much more than “different eggs in different baskets”, it is a deep and complex concept, but if well approached, it can be a safe course for your ships, for the fleet that makes up your investments.

Contact information:

Web: www.señorhouse.com.ar

Mail: info@señorhouse.com.ar

WhatsApp: 114-185-6272

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#power #diversification #real #estate

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