You are working for a regional real estate development firm in Denver a couple of years after graduating from Leeds. One bright sunny day, you are having lunch with one of the managing partners of the firm, and she brings up the firm’s interest in exploring investing in an overseas commercial real estate venture. She asks you to pick a country or city and prepare a memo that she can use to begin to educate the firm’s limited partners on how to think about overseas investment, in advance of bringing them specific investment proposals for their consideration.
Specifically, she asked that you prepare a five-page briefing memo on your chosen country or city that lays out the legal, economic and demographic, business climate and other factors, that should be considered in considering the attractiveness of investing in commercial real estate in that country or city.
The factors she is concerned that they need to understand mirror those discussed in REAL4400, and include the following areas of information on your chosen city or country:
- Information on the legal landscape, including enforceability of contracts and other considerations
- Taxation and regulation impacting real estate investment
- Access to and cost of capital
- Currency factors, including convertibility and profit repatriation
- Economic and demographic indicators of stability and demand for commercial real estate
- Rent levels and competition/market saturation
- Construction, labor force and other operational considerations
- Other factors you deem important