Times of broad economic disruption can wreak havoc on a real estate portfolio investment strategy and lay waste to large amounts of capital. This is inherent to the asset class. Consequently, tax efficient, multi-jurisdictional investment structures can be rendered obsolete. The cost-effectiveness of structuring comes into question when a complex situation is one of capital recovery. An obsolete structure only compounds erosion of capital. Proactive quantitative and qualitative analysis should support decision-making for rationalizing structures in good time, where possible. An investment structure of any kind should never be adrift. Management must always be moving forward, optimizing capital preservation and recovery on a marginal cost-benefit basis, according to well-defined and vetted asset management plans. Ideally, the marginal cost is not so high that capital is unnecessarily left to waste. Capital is divine. Every reasonable effort should be made for the benefit of financial stakeholders.

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