White paper Listed and non-listed real estate investment - why combine the two?
This white paper aims to provide answers to these questions. Based on academic literature and our own analysis, we conclude that both listed and non-listed real estate are exposed to the same common real estate factor. Both listed real estate companies and non-listed funds are vehicles for obtaining exposure to this factor.
We focus on how listed and non-listed real estate are different vehicles for capturing the same exposure, on differences in liquidity, pricing mechanism, leverage, cost levels and underlying exposures. We subsequently examine the potential opportunities created by these different dynamics. Next, we discuss potential arbitrage opportunities and examine whether diversification between the two can be achieved. We conclude with some final remarks.