Cash flow
An operating property can generate rental income. The more stabilised the asset and the higher its occupancy, the greater the likelihood that this flow is steady and predictable.
Why real estate
What a real asset brings to a portfolio
Informational content. It does not constitute investment advice or a recommendation regarding your particular situation.
Inflation protection
Over long horizons, real assets have worked as a partial hedge against inflation: both property values and rents tend to adjust during inflationary periods.
Diversification
Real estate responds to different factors from those moving equities and bonds. That low correlation is the portfolio argument, and also the reason for its illiquidity.
Outside public markets
Looking for alternatives beyond the exchange
A portfolio built only from listed instruments is exposed to a single set of cycles. Private real estate is one way out of that set without giving up analytical discipline.
View opportunitiesMore than diversification
Real estate markets fluctuate, but historically they have done so with less volatility than some other asset classes. That narrower amplitude is not a guarantee of outcome: it is a characteristic of the asset worth understanding before committing capital.
Appreciation and income
Real estate offers two return paths that do not depend on each other: appreciation of the asset and the periodic income it produces while operating. At Osnova we structure vehicles that pursue both, and the weight of each is an explicit decision per transaction, not an assumption.
By property type
What to consider by property type
Each property type responds to different drivers. These are the considerations we assess before originating.
Multifamily
Description
(urban or suburban)
When investing
The drivers are demographic: household formation, home ownership rates and local employment growth. Leases are typically short and adjust quickly to market conditions. It is among the more defensive types within commercial real estate, though still exposed to competitive pressure from new construction.
Retail
Description
From high-street units and neighbourhood centres to large formats with an anchor tenant that dominates its category.
When investing
It depends on the health of the wider economy and, above all, on local factors: location and foot or vehicle traffic, catchment demographics, household income and buying patterns. Leases are usually long, so rents can lag the market until expiry.
Office
Description
From multi-tenant towers in the business district to mid-rise single-occupier buildings in peripheral areas.
When investing
Rents and valuations depend on employment growth and the economic focus of the region. Tenant credit quality is decisive, and re-leasing a floor requires long lead times to negotiate, execute and fit out. Because leases are long, expiry can bring sharp step-ups or step-downs in rent.
Industrial and logistics
Description
Manufacturing plants, warehouses and distribution centres, research and development properties, and flex space.
When investing
Plants and R&D properties are usually built to suit one occupier and are hard to re-tenant without works. Warehouses and distribution centres are more generic. Local employment matters less than macro drivers: foreign trade and corporate inventory levels. As in office and retail, long leases make rents lag.
Other formats
Description
Self-storage, student housing, hospitality and specialised rental assets.
When investing
The drivers are demographic and macroeconomic, with far higher sensitivity to the local supply and demand balance. These are formats where the operator weighs as much as the property.
Risk and return
Moving up a strategy means moving up in risk
Moving between the three primary strategies is like stepping up a ladder: more risk is taken on and, in theory, compensated with a higher expected return. A balanced real estate portfolio may combine several of them, or all.
Each has its own risk and return profile.
Core
Stable, fully leased, well-located assets of the top category. Lower risk and lower expected return, with low leverage or none.
Value-add
Lower occupancy or secondary locations, with an opportunity to increase value through renovation or repositioning. Medium risk and return, with low to medium leverage.
Opportunistic
Typically land or ground-up development, with little or no near-term cash flow. High risk and high expected return, with high leverage.
Forms of ownership
Passive versus active ownership
How you own can matter as much as the property and the strategy. It changes the tax treatment, the operation, tenant disputes, the diversification available and how much responsibility falls on one person.
Not offered by Osnova
Higher minimum ticket and high operational effort
- The investor buys the property outright and hires a third party to manage it.
- The investor buys the property outright and handles management and upkeep personally.
Offered by Osnova
Lower minimum ticket and low operational effort
- Investment in a vehicle holding interests in properties run by operating partners who handle the day-to-day.
- Investment in a property alongside an operating partner responsible for operations and oversight.
Next step
Learn more
How we assess before originating
The diligence we run on each asset, with its four pillars and its declared scope.
View due diligenceTalk to someone
A conversation with the capital team
No form in between: you write and someone who knows the transactions replies.
Write to the teamQuestions
The questions that always come up
Terms, liquidity, minimums, reporting and what happens when a transaction does not go to plan.
Go to questionsThis material is informational and general in nature. It does not constitute a public securities offering, investment, legal or tax advice, or a recommendation regarding your particular situation. All real estate investment involves risk, including loss of capital, and its liquidity is limited. The historical performance of an asset class does not predict future results.
Next step
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Create your account to explore the approach and the track record, or speak directly with the capital team.
For qualified investors only. The information is institutional and informational and does not constitute a public securities offering or advice.