Core strategy
What is it?
It refers to a real estate investment strategy focused on acquiring and holding stable, high-quality real estate assets in prime locations. The goal is to generate regular income through long-term rentals, providing a steady cash flow and moderate appreciation of asset.
This strategy is characterized by its conservative and long-term approach, aiming to minimize risks and provide stability to investors. The assets targeted in a core strategy are typically well-located properties with high demand, such as offices in financial districts, residential buildings in established urban areas, or shopping centers in strategic locations.
Key aspects to consider
The main characteristics of the core strategy include:
- Stability and low volatility: The assets acquired are generally low-risk, with long-term lease agreements and high-quality tenants.
- Consistent returns: Investors expect to receive regular income from rents, with less dependence on fluctuations in the real estate market.
- Conservative valuations: Investments are made in properties that are already operational and have a proven track record of stable income.
Compared to other more aggressive strategies, such as the value-add or opportunistic strategy, the core strategy does not involve major renovations or risks related to the development of new projects, making it a preferred option for investors seeking security and long-term stability.
The core strategy is ideal for real estate investment funds and portfolios looking for predictable and sustainable returns with controlled risk.