The impact of sovereign wealth investment on the commercial real estate investment market
Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2016.
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| Format: | Thesis |
| Language: | eng |
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Massachusetts Institute of Technology
2016
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| Online Access: | http://hdl.handle.net/1721.1/103451 |
| _version_ | 1826210613935734784 |
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| author | Lehr, Robert Joshua |
| author2 | Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development. |
| author_facet | Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development. Lehr, Robert Joshua |
| author_sort | Lehr, Robert Joshua |
| collection | MIT |
| description | Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2016. |
| first_indexed | 2024-09-23T14:52:44Z |
| format | Thesis |
| id | mit-1721.1/103451 |
| institution | Massachusetts Institute of Technology |
| language | eng |
| last_indexed | 2024-09-23T14:52:44Z |
| publishDate | 2016 |
| publisher | Massachusetts Institute of Technology |
| record_format | dspace |
| spelling | mit-1721.1/1034512019-04-11T13:56:39Z The impact of sovereign wealth investment on the commercial real estate investment market Lehr, Robert Joshua Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development. Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development. Center for Real Estate. Program in Real Estate Development. Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2016. Cataloged from PDF version of thesis. Includes bibliographical references (pages 65-66). This thesis explores the relationship between Sovereign Wealth Fund participation in the United States and office risk premium. Over the past 10 years the commercial real estate industry has been the benefactor of a shifting tide in equity capital formation. Sovereign Wealth Funds, proliferating over the past 15 years, have discovered that commercial real estate is a well aligned asset class along side equities, bonds, and other alternative assets. With that said, Sovereign Wealth Funds are not typical sources of equity. Unlike private capital, sovereign capital receives special treatment in their home county as well as most recipient countries. For example, some advantages that Sovereign Wealth Funds enjoy over private sources include the following; no disclosure requirements, no stock/stake holders to report to, and limited or zero taxation. Additionally, due to the extreme ground swell of foreign reserves and current account balances, there is nearly zero obligation for the return of capital. With no direct need for a return of or on capital, many of these Sovereign Wealth Funds operate under an effective "indefinite" time horizon. Finally, as government entities, there may be non-economic strategic goals when informing the investment decision. Combining these issues of limited transparency, preferential taxation, limited discloser requirements, indefinite investment horizon, and noneconomic motivations, Sovereign Wealth Funds have a clear pricing advantage over privately sourced investment funds. After achieving a statistically significant regression model, this thesis quantifies the magnitude and character of this advantage by looking at the estimated market risk premium paid as a result of Sovereign Wealth Fund participation. by Robert Joshua Lehr. S.M. in Real Estate Development 2016-07-01T18:41:31Z 2016-07-01T18:41:31Z 2016 2016 Thesis http://hdl.handle.net/1721.1/103451 952171251 eng M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. http://dspace.mit.edu/handle/1721.1/7582 70 pages application/pdf Massachusetts Institute of Technology |
| spellingShingle | Center for Real Estate. Program in Real Estate Development. Lehr, Robert Joshua The impact of sovereign wealth investment on the commercial real estate investment market |
| title | The impact of sovereign wealth investment on the commercial real estate investment market |
| title_full | The impact of sovereign wealth investment on the commercial real estate investment market |
| title_fullStr | The impact of sovereign wealth investment on the commercial real estate investment market |
| title_full_unstemmed | The impact of sovereign wealth investment on the commercial real estate investment market |
| title_short | The impact of sovereign wealth investment on the commercial real estate investment market |
| title_sort | impact of sovereign wealth investment on the commercial real estate investment market |
| topic | Center for Real Estate. Program in Real Estate Development. |
| url | http://hdl.handle.net/1721.1/103451 |
| work_keys_str_mv | AT lehrrobertjoshua theimpactofsovereignwealthinvestmentonthecommercialrealestateinvestmentmarket AT lehrrobertjoshua impactofsovereignwealthinvestmentonthecommercialrealestateinvestmentmarket |