Risk, Returns and Value-Add Real Estate: The Evonite Philosophy

“Risk is often marginalised, especially during bull markets. We believe it should drive decision-making and portfolio construction at all times.”

For Evonite, risk is the foundation of every decision. The firm focuses on medium-risk, value-add investing, built on disciplined underwriting, transparent analysis, and consistent performance for investors, not asset gathering.

Jose Luis Pellicer explains how this philosophy came to define the business. Trained as an applied economist, he began his career analysing industries at Deutsche Bank before moving into real estate, a sector that combined geography, finance, corporate structure, and competition. Working with mentor Nick Tyrrell, he learned to approach property from first principles. That outsider’s perspective still shapes how Evonite challenges convention today.

The Global Financial Crisis reinforced a central lesson: markets are driven by stories as much as by numbers, and people follow the herd. Pricing becomes detached from fundamentals until it no longer can. The skill lies in recognising when that exuberance has gone too far and acting accordingly.

At the centre of Evonite’s approach is the Evonite risk score, a consistent analytical framework that measures and compares every potential investment before capital is deployed. It defines risk as financial downside, the risk of not achieving the underwritten return. Built on three core property risks: depreciation, vacancy, and liquidity, it blends scientific structure with human judgement to create a common scale for all deals.

Evonite launched in 2024 to deliver investor performance in a market dominated by scale, to stay nimble in a changing geopolitical and regulatory landscape, and to bring consistent, transparent risk assessment into every decision.

The conversation challenges consensus views and explores where opportunity may lie in sectors that most investors have written off, and why discipline, rather than conviction alone, will define success in the years ahead.

Episode Chapters

00:00 Introduction to ESG in Property Podcast

02:11 Jose's Journey into Real Estate

09:32 Influential Figures and Learning Resources

19:58 Founding Principles of Evonite

26:18 Understanding Risk in Property Investment

27:06 Evonite A New Approach to Real Estate

28:54 Defining and Managing Risk

33:16 Strategies for Risk Management

36:49 Navigating High-Risk Investments

37:53 Contrarian Views on Investment Sectors

43:37 The Future of Office Spaces

44:52 Researching and Assessing Risks

51:25 Looking Ahead: The Future of Evonite

About Jose Luis Pellicer

Jose Luis Pellicer is Partner Strategy at Evonite, where he leads the firm’s investment and ESG strategy, chairs the Investment Committee, supports capital raising, and oversees marketing and communications. He brings more than 25 years of real estate experience. Before Evonite, he was Global Head of Investment Strategy at M&G Real Estate, chairing the Global Investment Committee and sitting on the executive committee. He has previously been a partner at Rockspring Property Investment Managers, later served as Patrizia’s Global Head of Research and a member of its senior leadership group, and has held roles at Goldman Sachs, AEW Europe, and Deutsche Bank.