Real Assets for Wholesale Investors

Real assets are the physical, income-producing assets that sit at the base of long-term wealth: commercial real estate, industrial and logistics property, hospitality and accommodation, and agricultural land. Their appeal is a combination that is hard to find elsewhere: tangible asset backing you can see and value, contracted income through leases, and a natural link to inflation, since rents and replacement costs tend to rise over time.

For Boston Global Wealth clients the focus is on quality assets in strong locations, bought at a sensible entry yield, often with a value-add catalyst that is not yet reflected in the price. Real assets are a long-duration, illiquid allocation; that illiquidity is part of how the return is earned, and returns are not guaranteed. This page is general advice only.

What it is

Direct and fund-based investment into Australian and global real assets: A-grade CBD office, prime industrial and infill logistics, regional hospitality and accommodation, and agricultural land. Structures range from single-asset trusts to diversified portfolios and value-add development strategies.

Why investors use it

Real assets can bring together contracted income from leases, capital growth over multi-year holds, an inflation hedge through indexed rents and replacement-cost dynamics, and tangible security. Returns are indicative only, not guaranteed; capital is at risk and past performance is not a reliable indicator of future performance.

Types of real assets

Core income property (stabilised, leased assets), value-add and development (repositioning or building toward a higher end value), and specialist sectors such as hospitality and agriculture. Risk and return rise as you move from core toward development.

How BGW selects strategies

BGW screens asset quality and location, tenant and lease strength, the purchase yield, gearing, and the credibility of any value-add plan before a strategy reaches the approved list. Where useful, appropriate trust, company or SMSF structures are used to hold positions tax-efficiently.

Where it fits in a portfolio

A core, long-horizon allocation for income and growth that complements infrastructure and private credit. It is sized so the illiquidity suits your cash-flow needs, rather than dominating the portfolio.

Liquidity and risk profile

Real-asset trusts are typically closed-end with five-to-ten-year terms and limited or no early redemption. That illiquidity is deliberate and is matched to capital you can leave invested for the term.

Risks to weigh

Real assets are tangible, but they are not low-risk. The main risks to weigh:

Liquidity risk. Capital is generally locked for the term, with limited or no early exit.
Tenant and income risk. Tenants can default or vacate, reducing the income a property produces.
Leverage risk. Gearing amplifies both gains and losses and can force asset sales in a downturn.
Market-cycle and valuation risk. Property values move with leasing markets, interest rates and the broader economic cycle.
Development and execution risk. Value-add and development strategies carry construction, cost and timing risk.
Concentration risk. Single-asset trusts depend on one property performing as expected.

Frequently asked questions

What are real assets?

Real assets are physical, income-producing assets such as commercial real estate, industrial and logistics property, hospitality, and agricultural land. Investors earn income from leases and aim for capital growth over long holding periods.

Why do investors hold real assets?

For a combination of contracted income, long-term capital growth, an inflation hedge through indexed rents and replacement costs, and tangible asset backing. They suit investors building wealth over decades rather than quarters.

What returns do real assets provide?

It varies by asset, strategy and market cycle. Managers publish target or historical returns, but these are indicative only, not guaranteed, and should be read net of fees. Past performance is not a reliable indicator of future performance, and capital is at risk.

What are the risks of real-asset investing?

Illiquidity, tenant and income risk, leverage, movements in property values through the cycle, development and execution risk, and concentration in single assets. Real assets are best held as a core part of a diversified portfolio.

Who can invest in these real-asset strategies?

The wholesale strategies discussed here are generally available to wholesale or sophisticated investors as defined under section 708 of the Corporations Act.

How liquid are real-asset investments?

Most are closed-end, with capital locked for a set term of roughly five to ten years and limited or no early redemption. That illiquidity is part of how the return is generated.

General advice only. This information does not consider your objectives, financial situation or needs; consider the relevant disclosure document and seek personal advice before investing. Target returns are indicative only and not guaranteed. Past performance is not a reliable indicator of future performance. Private market investments carry liquidity, valuation and concentration risks and are generally restricted to wholesale or sophisticated investors under section 708 of the Corporations Act.