28 October, 2020
“A long-term perspective, a prudent portfolio build-up and a rigorous investment selection process are key components of successful implementation of non-core real estate investment programs”

Private non-core real estate strategies have three potential key benefits:

  • They can be a powerful addition to an existing (core), real estate portfolio since they have historically exhibited outperformance potential when compared with traditional core properties.
  • They provide access to new investment opportunities that may not otherwise be accessible.
  •  They can act as a diversifier within real estate or private market allocations and as part of institutional investors’ overall portfolios.

This paper provides an overview of real estate strategies, focusing primarily on the potential benefits of adding international non-core real estate assets to an institutional investor’s portfolio. It also covers general considerations related to the portfolio construction of international real asset programs and outlines Mercer’s rationale for what it believes to be the ideal private non-core real estate portfolio build-up. 

Download our "International non-core real estate" paper