Global – Funding Real Estate Development

Encourages short term holdings in long-term assets. Encourages property development and divestiture before properties have matured, or before they have started to generate income. Long-term investors are disuaded from participating due to quick property turnover. REITs of this type will undertake more risky investments, stemming from quick turnover. Value enhancement comes from refurbishing old properties or creating new properties, and managing either until cash flow is established.