A collective investment scheme invests primarily in real estate assets. These assets can include residential properties, commercial buildings, industrial warehouses, and land. Investors pool their capital, allowing for diversified exposure to the real estate market without direct ownership burdens like property management. For instance, a vehicle might own a portfolio of office buildings, distributing rental income proportionally to its investors.
Such investment vehicles offer several advantages. They provide access to potentially high returns, diversification across various property types and locations, and professional management of the underlying assets. Historically, these vehicles have played a significant role in large-scale real estate development and infrastructure projects, contributing to economic growth and urban development. They provide an avenue for individuals to participate in the real estate market with smaller capital outlays compared to direct property ownership.
