On Thursday, November 5, Alting Deputy Director General Carolina Marcos took part in the webinar organized by WIRES: “Family Office ¿Cómo adaptar el patrimonio a la nueva realidad?” (Family Office: Adapting real estate to the new reality)
The event, which took place in Barcelona and was streamed live online, was moderated by Carmen Pérez-Pozo Toledano, founder of the Pérez-Pozo law firm and WIRES member.
The panel discussion featured noteworthy executives from companies that specialize in real estate investment and family offices: Carolina Marcos, deputy director general of Alting and WIRES member; Carlos Aguayo, Real Estate director at Mabel Capital; and Martin de Abbad Fabra, director of Family Offices at Arcano Wealth Advisors.
These three companies each have a different way of operating. But all of them, unlike other economic operators like investment funds, apply the same formula: Company - Family - Property.
- Alting Real Estate Group: Real estate company with family equity.
Their core business is real estate investment and their current investment strategy focuses on a variety of products. The company invests in residential, tertiary (offices and retail spaces) and hotel properties in the best locations in Barcelona and Madrid, in projects that require a transformation, even if it takes a long time, bringing value to each of its assets.
- Mabel Capital: Family Office.
Their investment strategy is based on diversification and the company focuses on transformation projects that add value within a timeframe of three to five years, after which they are sold to acquire new properties and start again.
- Arcano Wealth Advisors: Multi Family Office
They work with an extensive group of national and international families and adapt their investment strategy to fit each family’s profile, from generating value to one-off opportunistic real estate investments.
Adapting real estate to the new reality
Based on the premise that property holding companies are facing the same challenges as large investment portfolios, participants debated the current situation of real estate investment and the opportunities this area may hold.
All of them agreed that the key points for making sure real estate investment is profitable include good planning and diversification in the middle/long term, plus a favorable legal and fiscal framework and focus on clients, innovation and adapting assets to meet demand.
Carolina Marcos, believes we are “at a complicated time, but there are opportunities. Investments are safe if they have the three basic drivers: good quality and location of assets and the expertise needed to make sure the initial numbers laid out can be met.”
Carlos Aguado insists, “It is a good time. There are opportunities and good real estate experts to lean on.” He believes in real estate investment “the short term does not exist” and that it is essential to remember “the importance of your assets’ ability to adapt.”
Martin de Abbad, agreed that “there will be good short-term opportunities. The buyer-seller price gap will narrow and there will be good real estate investments.”
Crisis with some opportunities
Assets like hotels, retail spaces and offices may be an investment opportunity as long as they are good quality and in a good location.
Retail spaces and hotels are suffering a lot but when tourism rebounds, they will still be a significant part of our economy and, therefore, in the middle or long term, they can be good assets for rigorous, demanding investment and to grow your portfolio.
It’s also a good time to update and reposition assets to fit the requirements of demand and even innovate in new uses based on new social and demographic trends.
For the small investor, it’s also time to invest in real estate assets but they have to understand that they won’t see any return in the short term. It is important to contemplate the future in the middle term and to get guidance from real estate experts.
Watch “Family Office ¿Cómo adaptar el patrimonio a la nueva realidad?” (Family Office: Adapting real estate to the new reality) - Youtube.