Introduction
The growth of the operational real estate (OpRE) sector is one
of the most significant recent trends in global real estate
markets. OpRE is relevant to a wide range of real estate asset
classes and subsectors, but all OpRE investments have one thing in
common: The returns on such investments are directly and
deliberately linked to the revenues and profits of the business
conducted on or from the real estate assets.
OpRE assets all involve some level of operational need beyond
the mere collection of rent, ranging from simple caretaking to
branding, on-site specialist services (e.g., hospitals, senior
care, life sciences), food and beverage, and wider experiential
offerings. Given the operationally intensive nature of OpRE assets,
investors need to think carefully about how the operations of the
businesses that use the underlying real estate asset are managed. A
variety of approaches are commonplace, ranging from investors
appointing a third-party
