REIT (London)- boring?

lmarc

I feel that REITs tend to make dull, low-risk investments, such as buying several buildings and renting them to a large supermarket chain. Is this a wrong view?

OK, you told me why you think a REIT is boring but you haven't told me why you think value add is somehow different and exciting. 

But what does "dull low-risk investments" actually mean? Do you have any idea what the job entails? Or even in fact if you have any idea what you're actually asking? If you buy a value add investment or a "super dull low risk investment" you have to agree and review the same documentation (NDAs, LOIs, HOTs, SPAs, LOE with your advisors, technical documents, tax documents and variations of legal documents (AMA, DFA, DMA), leases, AFLs etc etc). Some investments will require an extra clause, but that doesn't intrinsically make something exciting unless you literally get off on legalese, in which case you really should have become a lawyer instead. 

What do you actually want? Is it Complexity? Then you should apply to a developer, not a REIT or a "REPE" firm. Worse, is it prestige you're looking for? Then by all means apply to the coveted highs of prestige REPE but if its not what you enjoy then you won't last long/be happy - especially if you're unfortunate enough to be pulling long hours. Or is it money? Then focus on investment banking instead because real estate isn't a great rich quick scheme; or again apply for REPE but prepared to be unhappy because you didn't know what the hell you wanted. 

You sound like someone who hasn't yet had any real world experience? So many kids in college are so concerned about breaking into this magical world of opportunistic REPE when in reality they don't even know what it means. They think REPE means cool, exciting, high risk etc etc and think the job is in some way intrinsically more exciting than buying large trophy assets at a REIT. In reality they don't realise you're literally doing the same work 90-95% of the time. 

My advice is to understand what you want to do before potentially turning your nose up at opportunities for fear of it being "boring" or. "beneath you" (not to put words in your mouth) , especially for your first role.

Do you like big trophy offices? Sheds? PBSA? Resi? Development? Retail? Credit?

Does the idea of building something/changing cityscapes excite you? What about re-imagining existing space and creating something special? Maybe you're happy buying a plot of land in butt-fuck nowhere and developing a boring portal frame shed? (which BTW can be done in a core+ - > opportunistic strategy depending on what risks you are willing to take). 

Once you know what genuinely excites you, in terms of the fundamentals (and not something as inane as high risk = exciting) start looking into firms along those parameters.

You want high risk/exciting/complex? How about something like a small shop called General Projects that hit the press recently. They transform some really cool spaces but aren't REPE, more AM/Developers.