¿WHAT ARE FAMILY OFFICES?

Family offices are structures created by family groups with a large heritage to manage their assets.

Some families with businesses, when they reach a certain level of wealth, or when they sell their business, have to manage their assets and money. This is the role of a family office.

Family office firms mainly take care of making sure that the family heritage is passed on from generation to generation.

What type of real estate does a family office usually invest in?

Real estate assets are strategic and tend to represent about a third of their total investment.

There are two types of family office.

The first type is a family which still holds the business, usually industrial groups. It is more common for them to make safer investments, reducing the risk. This is because their business may still be at risk and they are looking for safe investment.

The second type is a family which already sold their business. They sometimes go for riskier investments, as they are more open to different options. However, they never make high-risk investments.

Family offices generally invest in the service-based market and the residential market, as they are looking for low-risk investments. A large amount of capital is destined to office buildings and another part goes to residential rental buildings.

However, in the last few years, family offices have started to invest in retail, especially in prime areas.

One standout characteristic of family office investments is that most of the time they go through with their investments without any external financial help.

This allows them to be more agile and flexible in their investments.

At Cat Real Estate, we are experts at managing family office heritage, as we are currently managing assets with a total combined worth of 800 million €.

Thanks for sharing!