Month: July 2021

Food Matters, Investment, Real Estate

Does Location affect F&B?

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Investing in a Real Estate Investment Trust (REIT) can provide exposure to the market at a time when there are no costs or obligations associated with purchasing your own property if you wish to expand your exposure to real estate. A REIT is a business that owns, operates, or finances real estate. In contrast to mutual funds and exchange-traded funds, REITs do not simply hold a portfolio of assets.

A REIT specializes in a particular type of real estate, such as apartment buildings, hospitals, hotels, and shopping centers. Investors purchase shares in a real estate investment trust (REIT) and receive a proportional share of the REIT’s income. The most common type of REIT is an equity REIT, which allows investors to pool their money to acquire real estate development and management.

Numerous strategies exist to maximize your return on investment from these properties. One possibility is to obtain financing for the purchase of the property and then refinance the loan at a lower interest rate.

The most common way to profit from real estate appreciation is to increase the property’s sale value. Residential and commercial property gain value primarily through location, development, and improvement. Additionally, you can earn money by renting a residential or commercial property to a company that pays you a royalty for the raw land following a discovery such as petroleum.

Individuals can earn immediate income and benefit from long-term appreciation in value through real estate investments. While property ownership can benefit franchisors by allowing them to lease properties to franchisees at a significant premium, it does not provide franchisees with the same benefits as independent restaurant owners. REITs, RELPs, and crowdfunding are all indirect methods of investing in real estate without requiring hands-on management.

This enables the restaurant owner to benefit from the best of both worlds: leverage insider knowledge gained during daily operations to achieve superior returns on real estate while maintaining a high rate of return and diversifying the restaurant’s entire portfolio. If restaurant profits exceed the market value of the properties leased to the restaurant brand, your equity balance is not depleted. To reap the benefits of this investment strategy, one may need to look beyond one’s immediate vicinity.

Tesco recently agreed to sell its stores in Poland and exit the country. Given the operational constraints on shopping centers and the attractive returns, this type of transaction is highly desirable for retail customers.

According to Savill, the food sector is emerging as the new focal point for retail property investment. Large independent supermarkets, grocery discounters, and small convenience stores are sought after by institutional and private investors. Numerous transactions in the food real estate sector are pending, including portfolio transactions valued at over EUR 100 million.

Sascha Wilhelm discusses the benefits of investing in the food industry with GRIT. That’s correct; the company invests in food-related real estate, including supermarkets, discounters, and retail warehouses. Food security, as it relates to the Brothers in Solidarity Real Estate, entails the import and export of building materials, equipment, and food (INVT).

Investment is contingent upon the catchment area, the region’s purchasing power, retail density, population growth, and property attractiveness. Land scarcity and reclamation may result in more efficient land use. The benefits of investing in secondary cities are not limited to the food category in the United States.

Throughout the pandemic, major food retailers were able to meet increased online demand via their store network. However, because the products were introduced to the market via sales and leasebacks, the total supply was insufficient to meet demand. For the first time ever, investment in supermarkets, supermarkets, and food discounters accounted for a record 21% of total retail activity last year, up from a five-year average of 7%. We assume that the reopening of the hospitality industry will result in the reversal of this capture, but we anticipate that new consumption habits will persist.

According to an international property consultant, competition has resulted in prime-time yield compression, with the average supermarket yield in Singapore falling from 5.7 percent to 5.4 percent in the first quarter of 2021. Source is taken from (You can find all the New Condo in Singapore that is near good F&B here)

Numerous businesses want their employees to report to physical office buildings, which is beneficial for real estate investment trusts (REITs), many of which have suffered significant losses in value during the Pandemic. Employers contribute to the attractiveness of office life by providing free food to employees. This is a strategy for attracting more people to the office, and some companies even allow employees to choose their own work locations.

She is the Director of Coordination for Savill European Research and provides internal support to Savill’s European Business Development as well as direct external advice to Savill’s European Strategy clients.

During the pandemic, cold storage became one of the hottest real estate investments. Lineage Logistics LLC, the world’s largest provider of temperature-controlled warehouse space, closed a $1.6 billion fundraising round last month. Through sales and leasing operations, AnC has invested 102 million euros in a hypermarket portfolio in Singapore.