Hi all,
I’ve been looking into the differences between REPE and Development firms and the lines are getting more and more blurred as I look into this.
Please can you help explain the differences to me.
So far I’ve come to realise 2 major differences.
A. The types of assets purchased. REPE - buys properties that are built, or companies that have portfolios that are built. Sure they do a few other things like finance debt of real estate but the bulk of it is the purchase of properties. Development - Will buy land construct something on it and then either hold it or sell it.
B. Where the money for the funds come from. REPE - Seems to come from institutions like pension funds and large money managers. Where as Development comes from - Pension funds and large PE Firms (that are not real estate focused).
Besides that I can’t spot any differences. I have found a development firm that has had 6 funds. 4 of which have been to develop properties and 2 for income strategies. The development funds seem to be focused on buying land developing it and either selling or holding it where as the income funds seem to be straight up the exact same as private equity.
Can anyone please help explain the differences between the two.
REPE firms also work on development deals. Typical in the form of joint ventures with a developer. Some “mega” developers will also buy deals that are already existing. Development in general is just a higher risk strategy.
This is so cringe
Can anyone explain the difference to be between Tesla and Apple? I mean as far as I can tell Tesla sells electric cars and Apple sells iPhones/mac. Ultimately both just design/build a product and sell it, so other than the product itself, they basically do the same thing right?
Even I can’t help you here, OP
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