What exactly is OpRE?

To bring more clarity in this field and to promote market transparency, the new Operational Real Estate Committee has developed a definition of Operational Real Estate as follows: 

‘An investment in a real estate asset structured so as to create a strong correlation between returns to the asset owner and the underlying operational performance of the operator or occupant. Operational real estate investments typically entail a different risk-return profile (operational, financial, or both) when compared to non-operational investments. Such investments may be accessed via a variety of structures, including, but not limited to, operational services agreements, joint venture arrangements or taking equity stakes in an operating business.’