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Advisor.ca – The pros of private real estate #yeg #yegre

Private real estate can be suitable for clients looking to offset the volatility of stock markets. But as an asset class, it’s not without risk, and it is governed by a complex set of rules.

Public real estate investment trusts (REITs) are well known to most investors. Private REITs offer the same trust structure, but don’t trade publicly. It’s a format favoured by Greg Romundt, president of Centurion Apartment REIT, a private investment structure focused on apartment buildings.

No public trading means a lack of liquidity for private REITs. Centurion offers redemptions on a monthly basis, subject to certain limits. Still, Romundt points out private REITs are intended to be long-term investments.

“For most people, you should be looking at a holding period of five years and up,” he says.

“I would say real estate should be in everyone’s portfolio, in addition to stocks and bonds, so it’s all part of a diversified strategy,” he says. “I wouldn’t tell anyone to be all in real estate; you want to have a diversified, well-thought-out plan.”



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