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Direct and Indirect Investment for International Diversification

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Challenges<br />

• Finding trustworthy local partners/operators<br />

• Currency <strong>and</strong> political risk<br />

• Tax drag (in some markets)<br />

• Many countries have lower transparency<br />

• Lack of global benchmarks (except securities)<br />

• Communicating across time zones <strong>and</strong> cultures<br />

• Volatility of returns<br />

Cross-border real estate can compensate investors <strong>for</strong> these costs <strong>and</strong> risks

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