What is international property fund management?

• The increasing integration of international real estate markets.

• Allows property funds to diversify across different countries/markets.

• Offers opportunities for higher returns

• Introduces risks like currency fluctuations/regulatory differences.

 What are the key benefits of globalisation for property fund management?

• Diversification: Reduces risk by investing in multiple countries/markets.

• Access to new markets: Provides opportunities in emerging markets.

• Higher returns: Potential for higher yields in certain international markets.

• Economies of scale: Large funds can achieve cost efficiencies.

What are the risks associated with cross-border property investments?

• Currency risk: Exchange rate fluctuations can impact returns.

• Regulatory risk: Different legal systems /property laws.

• Political risk: Changes in government policies can affect investments.

• Cultural differences: Differences in business practices/tenant expectations.

How can property funds manage currency risk in international investments?

• Currency hedging: Use forward contracts, futures, or options to lock in exchange rates.

• Local currency assets: Invest in assets that generate income in the local currency.

• Diversification: Spread investments across multiple currencies to reduce exposure.