INREV IQ magazine

THE MAGAZINE OF THE EUROPEAN NON-LISTED REAL ESTATE INDUSTRY INREV guidelines in action How to get the most out of it

IQ

GRESB Survey Results are in!

How did INREV members do?

Focused on Solvency II: Marieke van Kamp tells all

MAGAZINE

Banking on Growth What impact will the recapitalisation of banks have on property lending?

Passing the torch Regulatory issues move into professional standards domain

Value judgement Seeking out worth in heating markets

ISSUE 21 • INREV QUARTERLY • FEBRUARY 2015

Welcome This time of year sees the INREV team

(page 5), we will bring you a more

looking forward in preparation for

in-depth analytical approach that will

2015. We’ve been gathering input from

meet the demands of an increasingly

members and our Management Board

sophisticated market.

for our 2015 Business Plan to ensure that our views are aligned with the

The market maturity must also be

needs of the market.

reflected in our events. While we are a pan-European industry, we see the

For 2015, we will have a continued

depth of engagement within national

focus on increasing acceptance of the

markets increasing. This means that

INREV Guidelines as a standard within

to support those members we should

the global market. The revised INREV

offer more events in local languages.

Guidelines are not yet a year old – one

We’ve already started that in 2014

of our main achievements for 2014 –

with webinars in German, Italy and

but already there is evidence of them

French, and we will do more localisation

being integrated in the market here

to make our work as accessible as

and in Asia.

possible to the widest group of market participants.

One important aspect of this is to work closely with our US counterparts

We think that this will also be a good

to ensure there can be an easy

way to grow our roster of investor

transposition from, and to, the INREV

members, which is always an important

Guidelines to the established Real

priority. We will work with members to

Estate Information Standards (REIS).

organise small-scale content-led events

MATTHIAS THOMAS

For us, this means a new addition

for prospective investor members to

INREV CEO

in one area which is performance

help them understand the benefits of

measurement. This will be on the

joining INREV.

agenda for 2015.

I would like to thank all our members Next year will also mark a new phase

for the support they have shown INREV

in our research programme. As the

in 2014, with a special thanks to our

industry matures, our independent

Management Board, committee and

research must reflect that. With Henri

working group members. I wish you

Vuong joining the team as Director

and your families a wonderful festive

of Research and Market Information

period.

INREV QUARTERLY –

1

IQ ONLINE All articles and features in the IQ can be viewed online at the website www.inrev.org. Articles are searchable by section or can be browsed by issue. Selected articles are also available from previous editions of the IQ while there are PDF versions dating back to December 2009.

A – ISSUE 21

Contents Update and news Sustainability Committee Staff profile: Henri Vuong New members Sweden attracts non-listed funds

Public Affairs

04 05 06 08

Letter from Brussels

Member profile

10

Marirke van Kamp

Research

14

Banking on growth Banking on growth 2 Fees highlight regional variations

18 20

Professional Standards

24

Growing on Green Europe leads reporting compliance Passing the torch

28 32

Viewpoint

34

Value Judgement

Young Professionals

36

Guidelines in Action Industry Job Moves

40

View from Asia

42

Calenders

43

Training calender Event calender

44

What’s Coming Up?

46

INREV QUARTERLY –

3

‘Looking at the broader impact is part of responsible investing’

Sustainability Committee Committee update

The upgrade of the Sustainability Working Group to a full committee is a sign of INREV’s commitment to emphasising the importance of sustainability in the non-listed real estate investment industry. Its aim is to improve the dialogue between investors and fund managers to increase knowledge and to drive a better understanding of the relevance of sustainability.

recently organised the webinar “Why sustainability investments are green to go”. This outlined the topic of sustainability from a life cycle perspective, focusing on the topic at a vehicle level, and offering an overview of social and ecological sustainability. “The high level of attendance and the number of questions raised at the webinar showed the strong interest from the industry,” said Elshout. However, he acknowledges that there is still some way to go.

“Sustainability has been on INREV’s agenda in the last few years and there is enthusiasm to incorporate sustainable practices, but until a firmer link is established with financial

One main consideration for the committee is to concentrate

performance, investors may continue to see a conflict with

not only on the environmental aspects of sustainability

their fiduciary responsibilities,” said Elshout.

but also to incorporate social factors such as labour rights, the creation and safeguarding of jobs and induced

The committee plans to help this by supporting education

spending in the surrounding area. “Social sustainability

and research in this area including publishing academic

is the most difficult aspect to quantify but we know that

work on the topic. In addition, it plans to update and refine

looking at the broader impact of our investment is part of

the INREV Sustainability Reporting Recommendations

responsible investing,” says Mathieu Elshout, Chairman of the

and provide best practices, case studies and examples of

Sustainability Committee and Senior Investment Manager

sustainable investments to show the impact on returns.

with PGGM. “Having the mandate of a full committee has further One barrier to integrating sustainability into the investment

increased the members’ enthusiasm to putting our plans into

process has been the low level of education and training

action.

within the industry. To begin to overcome this, the committee A – ISSUE 21

UPDATE AND NEWS

Henri Vuong Staff profile Henri Vuong is INREV’s newest member of the team in Amsterdam, joining as Director of Research and Market Information.

She will be responsible for

replaces Casper Hesp in the

of Property Derivatives.

maintaining and further

role. Henri’s previous real

Henri also comes to the role

developing INREV’s Research

estate experiences span

with a strong understanding

and Market Information

both equity and debt. She

of the benefits of industry

initiatives, such as the

joins INREV from the Real

research programmes.

annual and ad-hoc research

Estate Finance Strategy

projects as well as the INREV

& Research team at the

She was the 2012 Chair of

Vehicles Universe and the

Royal Bank of Scotland in

the UK Society of Property

INREV Index. In addition,

London, where she was

Researchers and continues

she is keen to continue to

responsible for formulating

to serve on the committee.

broaden INREV’s reach.

commercial real estate

She also sits on Property

“One of my priorities will be

business appetite strategies

Industry Alliance research

to further expand INREV’s

and providing client insight

group, and is a Board

interregional research

for the Commercial & Private

Director of the Association

programme. I think we

banking division. Prior to

of Property Lenders,

have a strong foundation in

RBS, she worked as a Senior

Consultant to the Chinese

Europe to serve the needs

Property Research Analyst

Property Professionals

of all members, and help

with a focus on Quantitative

Society, an Assessor for the

INREV lead the development

Risk at M&G Real Estate

RICS Research Trust and a

of globally consistent market

(formerly PRUPIM), as well as

member of the Investment

practices,” said Henri, who

Acting Deputy to the Director

Property Forum.

‘One of my priorities will be to further expand INREV’s interregional research programme.’

CONTACT HENRI VUONG 000 000 000 000 henrivuong@irev.com

New members Two new members since September 2014 DANICA PENSION Institutional Investor Denmark

POSTE VITA SPA Institutional Investor Italy

INREV QUARTERLY –

5

Sweden attracts non-listed funds Research into the Swedish market

A – ISSUE 21

UPDATE AND NEWS

Alfio Shkreta, INREV Research Analyst, recently researched the Swedish markets through a series of interviews with placement agencies. The Swedish property market started 2014 with a high volume of transactions. In the first half of the year there was an increase of 30% compared with last year.

The Swedish economy has been characterised by stability in the last few years, while the very low interest rate environment has made it possible for Swedish investors to acquire financing at very low rates. As a result, the percentage of the total investment volume from domestic investors has been around 85% for 2013 and 2014, favouring office and residential with international investors preferring retail.

Another difference between local and domestic capital is the route to investment. Local investors prefer to make direct investments while international investors are looking at funds to gain access to the Swedish real estate market. This is because they lack local expertise so prefer to partner with local market participants or invest with managers who have a proven track record. In the INREV Vehicle Universe there are five funds from three different fund managers who invest only in Sweden. The Index sample of single country Swedish funds is too small to be able to produce a sub-index.

Investors in Sweden have also seen that the cost of financing decrease substantially, and have been able to borrow at around 45 basis points. The availability of cheap capital and scarcity of prime properties has led to an increased volume of transactions of secondary assets. Prices for these assets has therefore been increasing steadily in the last two years, which has resulted in a narrowing spread between primary and secondary assets.

These indicators suggest that the Swedish real estate investment market, especially Stockholm, is at buoyant levels.

The fundamentally strong Swedish economy and its highly liquid and transparent market continue to make Sweden attractive to international investors of real estate, especially to those investing via non-listed funds.

FURTHER INFORMATION: Please contact Alfio Shrkreta at alfio.shkreta@inrev.org.

INREV QUARTERLY –

7

INREV leads successful Brussels policymakers event Letter from Brussels

After something of a lull during the summer, activity in Brussels has really picked up in recent months. The seating of the newly elected European Parliament followed by the appointment of new Commission leadership created new opportunities to familiarise policy makers with the non-listed real estate funds industry and we have been busy doing just that.

After something of a lull during the summer, activity in Brussels has really picked up in recent months. The seating of the newly elected European Parliament followed by the appointment of new Commission leadership created new opportunities to familiarise policy makers with the non-listed real estate funds industry and we have been busy doing just that.

The centrepiece of our recent efforts has been to organise an industry event for policymakers in Brussels in early November with the support of the 27 other institutional real estate investment-related associations participating in the European Real Estate Forum (EREF). The event focused on the role of real estate as a long-term investment and its important contribution to vital and sustainable European urban areas, European economic growth, job creation and environmental sustainability.

The event was a big success, attracting nearly 80 participants interested in learning about how institutional investment in real estate can contribute to solving some of Europe’s most pressing issues.

Our timing was certainly good, as the event came just two days ahead of the new European Commission leadership’s

A – ISSUE 21

PUBLIC AFFAIRS

‘The real estate investment industry is central to economic activity across Europe, so this event was timely and significant.’

“Finance for Growth” conference in Brussels, which

in the economic growth agenda for Europe.”

addressed how private sector capital can help stimulate growth and job creation. It also closely followed Commission

At the EREF industry associations meeting following the panel

President Jean-Claude Juncker’s announcement of a €300

discussion and a networking lunch with policymakers, INREV’s

billion stimulus package for Europe and plans to facilitate

leading role in organising the day’s event was very much

capital flows and investment across Europe under the Capital

appreciated. Participants from associations across Europe

Markets Union initiative.

also discussed how INREV we can build on the steps taken so far. With a goal to ensure that we continue to raise the

The panel at the Brussels event included MEP Philippe

awareness of the social and economic role and importance

de Backer, Karel Lannoo, CEO of the Centre for European

of real estate investment with policy makers, future Brussels

Policy Studies, and Patrick Kanters, Managing Director Real

events based on new messages and close collaboration will

Estate and Infrastructure for APG Asset Management. Dirk

be important building blocks.

Brounen, Professor of Real Estate at Tilburg University in the Netherlands, moderated a lively discussion, which also hit

Contribute to the policy discussions to increase both

on key topics from the need for a more coordinated policy

knowledge and awareness of our industry. Policy making

approach to stimulating key investment, to the significance of

based on more complete understanding of institutional

sustainably responsible investment, and the importance of

real estate investment should help lead to better outcomes

avoiding over-regulation in the future.

for our industry while enabling us to fully contribute to addressing the challenges facing Europe.

Kanters articulated the main message of the event well in a statement to the press: “The real estate investment industry is central to economic activity across Europe, so this event was timely and significant. It illustrated how important it is for us to maintain a well-informed, open dialogue with policymakers to ensure we can continue to play our part fully

JEFF RUPP Director of Public Affairs jeff.rupp@inrev.org +32 22 13 8161

INREV QUARTERLY –

9

‘Solvency II was seen as the death of real estate. This was a dramatic perspective but we’re still here.’

Marieke van Kamp Member profile

A – ISSUE 21

MEMBER PROFILE

Both in her day job and at INREV, Marieke van Kamp is firmly focused on Solvency II. IQ talked to her about how Solvency II is likely to impact the real estate industry. From her deep knowledge of the regulation, she offers some enlightening and instructive insights.

“Solvency II regulation has been with us for the best part

measure of risk but it could also reduce investor appetite for

of the last nine years. It’s generated thousands of pages of

diversification which, for many, has long been one of the key

commentary and absorbed many hours of debate. It’s also

benefits of non-listed real estate investment.

cast a fairly major shadow over the real estate industry,” says Marieke van Kamp, Head of Real Estate & Alternatives at NN

Van Kamp observes that the Solvency II team at EIOPA is

Group. But she acknowledges that, as a piece of prudential

shaping the IORP regulation so there’s a chance that the

regulation, Solvency II occupies an important place. “This

approach it adopted to risk and leverage for Solvency II could

regulation is clearly in line with European regulators’ views

be replicated in the long term in the pensions regulation. And

that an overly leveraged economy is unsustainable and

if both pension funds and insurance companies – the bulk of

undesirable. The original objectives of the regulation were

institutional investors – reduce their allocations as a result of

rooted in good sense at a time when real estate was arguably

a lower appetite for leverage, the consequences for the real

in need of better oversight, and individuals who looked to

estate market will likely be fairly significant.

institutional investors for their savings and pensions products needed greater protection.”

There will be broader knock-on ramifications too. The new European Commission may well see sustainable investment

However, now that it is in its near final form, van Kamp sees

platforms as the engine for long-term economic growth

Solvency II as something of a blunt instrument that has

across the union, but there’s a perceptible, if silent, inference

become far more complicated than it probably needs to be.

from van Kamp that, with Solvency II, Brussels may just have

As such, she believes that Solvency II will significantly impact

shot itself in the foot in terms of delivering this new agenda.

investors’ decisions about their allocations to real estate in the medium term, at least.

However, she also recognises that it may be a question of time. Investors with a time horizon of 20-25 years are unlikely

The devil of Solvency II is in the detail and van Kamp explains

to desert the asset class in droves. And on the upside,

very clearly why some of these details will cause problems

investors exiting real estate will create opportunities for new

for investors. “The look-through principle is the key factor for

entrants to find a way in.

many investors because the ability to take risk depends on leverage and, if this is capped at 50%, the level of deployable

It certainly isn’t all gloom. Solvency II will reduce volatility

capital is reduced. Philosophically, the commitment to real

and, depending on their specific points of view, investors

estate as an asset class hasn’t changed but allocation is

could find this helpful. It has also helped to make real estate

dependent on exposure and this is defined by the equity

more transparent as an industry, though this will come at

invested. So if leverage is reduced as the result of Solvency II,

a price for fund managers, in particular. “There’s no doubt

real estate exposure will go down because there will be less

that the rigorous and detailed reporting requirements of the

actual capital to invest.

regulation will mean significant additional burden for many managers. INREV has a key role to play in helping here. For

Alongside leverage sits the solvency capital requirement

example, by setting out a consistent approach to reporting

(SCR) - the infamous 25% shock factor. The arguments

in an effort to reduce continued requests from investors

about its inappropriateness are well known, but van Kamp

for a slightly different version of the data each time. A lot is

emphasises the effect this element of Solvency II could

already being done in this respect, particularly through the

have on investment strategies. It is, she says, a mistake to

Guidelines, the Standard Data Delivery Sheet and the DDQ,

use the same measure of risk for a single stable asset as

as well as through workshops and training.”

for a diversified fund operating in a mix of different sectors across multiple jurisdictions. Not only is it an inefficient

But that there is still further to go. “As the industry body INREV QUARTERLY – 11

for the non-listed sector, this is at the

the industry. She mentions that

was a dramatic perspective but we’re

heart of what INREV needs to do and

sustainability is high on the list

still here. The current low interest rate

we’re firmly focused on meeting this

of priorities for the European

environment has dampened some of

objective.”

Commission. With a Masters in Real

the negatives and I can’t see things

Estate Management and in Sustainable

changing anytime soon so far as rates

Referring to the planned review of

Development herself, it’s a subject

are concerned. However, the jury is

SCRs under Solvency II by 2018, she

that’s close to her heart too. It’s also an

still out because the combination of

also sees an important role

high interest rates and the

for INREV to update data

implementation of Solvency

showing the real volatility of real estate investments. Going further, van Kamp notes that INREV can play an important role more generally by helping

‘Solvency II was seen as the death of real estate. This was a dramatic perspective but we’re still here.’

II would definitely reduce the attractiveness of real estate relative to fixed income. That would be an uncomfortable place to be, but our industry

policymakers better understand

is resilient and the work we’re

how real estate investment

continuing to do is all about

actually works. The objective

area that INREV is looking at closely.

is to ensure that any future regulation

This bodes well for greater alignment

affecting the real estate market is more

between policymakers and the industry

measured and fit-for-purpose.

in the future.

On the subject of new regulation,

In the meantime, Solvency II remains

Marieke sees this as a potentially

a hot topic. “In 2010, Solvency II was

positive way to further professionalise

seen as the death of real estate. This

A – ISSUE 21

preparing ourselves to deal with that challenge when it comes.”

MEMBER PROFILE

Total real estate assets under management FUND OF FUNDS MANAGERS

18 BN EURO 2014

18,2 BN EURO

INSTITUTIONAL INVESTORS

364,5 BN EURO

425,8 BN EURO

FUND MANAGERS

1100 BN EURO

1200 BN EURO

2015

INREV QUARTERLY – 13

Banking on growth What impact will the restructuring of banks have on property lending?

A – ISSUE 21

RESEARCH

With the European Central Bank (ECB) assuming responsibility for the supervision of banks in the euro area, improvements in strengthening the banking system are underway. In theory, the Single Supervisory Mechanism (SSM) will provide a level playing field in the supervisory requirements to be met by banks across the euro area, thus helping to rebuild trust and bolster financial stability.

The ECB, together with the national supervisors, have already made great strides in preparation for operating under a SSM. Together they conducted

Loan origination strategy composition by number of funds

DIRECT LANDING DIRECT LENDING LOAN ACQUISITION

the recent comprehensive assessment which

LOAN ACQUISITION

consisted of the asset quality review (AQR) and a

NOT REPORTED

forward-looking stress test of 130 banks across the euro zone, results of which found a capital shortfall of €25 billion at 25 banks.

‘Despite increasing their capital by €15 billion in 2014, banks are still too weak to expand new lending materially.’

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam tristique tincidunt feugiat.

Fund status composition by number of funds

Despite 12 of the 25 banks having already covered their capital shortfall by increasing their capital by €15 billion in 2014, banks are still too weak to expand new lending materially.

Modest month-on-month growth in corporate lending indicates it is still too early to call this stability. Even with the positive AQR and stress test results, any growth in lending in the near term is likely to be modest at best. Banks in the periphery still face challenges which may deter

LORUM IPSUM

them from expanding lending.

LORUM IPSUM

DECLINE SLOWING The picture is diverse. Spain has benefitted from

LORUM IPSUM LORUM IPSUM

early restructuring and recapitalisation which has led to improved confidence. Asset quality remains a problem, though, and the Spanish

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam tristique tincidunt feugiat.

banks are still cutting loans to corporates, but the overall pace of decline is slowing. While Italy, INREV QUARTERLY – 15

Loan origination strategy composition by number of funds

Fund status composition by number of funds

45% 28% 34% 38% DIRECT LANDING DIRECT LENDING LOAN ACQUISITION

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam tristique tincidunt feugiat.

LOAN ACQUISITION NOT REPORTED

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam tristique tincidunt feugiat.

which has one of the most highly

ALLOCATIONS ON THE RISE

loan books and recapitalising their

fragmented banking systems across

In the INREV 2013 Investment

balance sheets, savvy institutions

Europe, has been slow to make

Intentions Survey 55.9% of respondents

spotted a regulatory capital arbitrage

structural reform. Consolidation is

indicated an intention to increase

and stepped in to fill the void left by

much needed to improve economies

allocation to commercial real estate

the traditional lenders. As a result

of scale and boost profitability. As a

over the year. This intention was swiftly

there has been an increasing number

result the Spanish economy has fared

translated into action with €47.3

of alternative debt providers for

better than its peers, though it faces headwinds from a generally slowing Europe.As such, a forced action requiring banks to further reinforce their balance sheets would be at the expense of new lending.

European commercial real

‘Despite increasing their capital by €15 billion in 2014, banks are still too weak to expand new lending materially.’

Lending volumes may be slow

estate.

At the time of writing, the number of European non-listed debt funds had reached 39, representing targeted equity of €29 billion. Furthermore €8.9

to improve, but there are

billion of capital was raised in

both supply side and demand side

billion of capital raised over 2013 for

2013 for European non-listed debt

dynamics at play. Those borrowers

investment into the non-listed real

funds, according to the INREV Capital

representing “good” risk do not need

estate sector. Some of this capital will

Raising Survey 2014. This is a clear

or want to borrow money from banks.

undoubtedly be making its way towards

indication of commitment to this

This could create a downward spiral in

bank’s asset disposals.

spectrum of the market.

and asset sales to equity rich buyers

However, buying assets or loans is only

Alternative lenders offered non-senior

only, of which there is no shortage for

one investment strategy. While banks

debt; however, in recent years this

commercial real estate.

have been busy working through their

has evolved to a much wider offering.

the European markets via forced loan

A – ISSUE 21

RESEARCH

Loan origination strategy composition by number of funds

Fund status composition by number of funds

45% 28% 34% 38% DIRECT LANDING DIRECT LENDING LOAN ACQUISITION

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam tristique tincidunt feugiat.

LOAN ACQUISITION NOT REPORTED

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam tristique tincidunt feugiat.

Of the €8.9 billion of capital raised,

is certainly true of the German real

supply for those who need or want

48.8% was by senior debt funds,

estate lending market. Results from

debt, juxtaposed with plenty of

26.2% by subordinated debt funds,

the IREBS German Debt Project 2014

debt, for those who do not need or

while the remaining is apportioned to

showed that more than half of the

want to leverage. However, with the

those funds that offer a mix of senior,

institutions surveyed expect to expand

development of new, sustainable

subordinated and / or whole loans.

new business as well as growing their

and secure sources of finance, the

This strong appetite for real estate

existing loan portfolios although citing

commercial real estate funding market

debt, mainly driven by pension

is now more diversified than

funds and life insurers, comes

ever before, suggesting a move

at a time when some traditional lenders are more proactively lending again. This has led to increasing competition in some markets, where all sources of debt are chasing the same types

‘Despite increasing their capital by €15 billion in 2014, banks are still too weak to expand new lending materially.’

towards a more balanced and varied provision of real estate debt for European real estate – potentially limiting the impact of any future credit crunch.

of assets - good quality asset, good location, good tenant -

the “increasing level of competition” to

where the future potential is stronger

be “a major issue”.

than today’s proposition, and most importantly, to a borrower with strong

As a result there has been a “noticeable

supporting credentials.

move away from [the] narrow focus on core properties” towards more

EXPANSION OF NEW BUSINESS

secondary space, which is the usual

As such, select markets are seeing

hunting ground for traditional

pressure on pricing and margins. This

lenders. In short, there is limited

FURTHER INFORMATION: Please contact Alfio Shrkreta at alfio.shkreta@inrev.org.

INREV QUARTERLY – 17

Banking on growth What impact will the restructuring of banks have on property lending?

With the European Central Bank (ECB) assuming responsibility for the supervision of banks in the euro area, improvements in strengthening the banking system are underway.

In theory, the Single Supervisory Mechanism (SSM) will provide a level playing field in the supervisory requirements to be met by banks across the euro area, thus helping to rebuild trust and bolster financial stability.

billion in 2014, banks are still too weak

to improve, but there are both supply

to expand new lending materially.

side and demand side dynamics at play.

Modest month-on-month growth in

Those borrowers representing “good”

corporate lending indicates it is still

risk do not need or want to borrow

too early to call this stability. Even

money from banks. This could create

with the positive AQR and stress test

a downward spiral in the European

results, any growth in lending in the

markets via forced loan and asset sales

near term is likely to be modest at

to equity rich buyers only, of which

best. Banks in the periphery still face

there is no shortage for commercial

challenges which may deter them from

real estate.

expanding lending.

ALLOCATIONS ON THE RISE DECLINE SLOWING

In the INREV 2013 Investment

The picture is diverse. Spain has

Intentions Survey 55.9% of

benefitted from early restructuring

respondents indicated an intention to

and recapitalisation which has led to

increase allocation to commercial real

improved confidence. Asset quality

estate over the year. This intention

remains a problem, though, and the

was swiftly translated into action with

Spanish banks are still cutting loans

€47.3 billion of capital raised over 2013

The ECB, together with the national

to corporates, but the overall pace of

for investment into the non-listed real

supervisors, have already made great

decline is slowing. While Italy, which

estate sector. Some of this capital will

strides in preparation for operating

has one of the most highly fragmented

undoubtedly be making its way towards

under a SSM. Together they conducted

banking systems across Europe, has

bank’s asset disposals.

the recent comprehensive assessment

been slow to make structural reform.

which consisted of the asset quality

Consolidation is much needed to

However, buying assets or loans is only

review (AQR) and a forward-looking

improve economies of scale and boost

one investment strategy. While banks

stress test of 130 banks across the

profitability. As a result the Spanish

have been busy working through their

euro zone, results of which found a

economy has fared better than its

loan books and recapitalising their

capital shortfall of €25 billion at 25

peers, though it faces headwinds from

balance sheets, savvy institutions

banks.

a generally slowing Europe.

spotted a regulatory capital arbitrage and stepped in to fill the void left by

Despite 12 of the 25 banks having

As such, a forced action requiring

the traditional lenders. As a result

already covered their capital shortfall

banks to further reinforce their balance

there has been an increasing number

by increasing their capital by €15

sheets would be at the expense of new

of alternative debt providers for

lending. Lending volumes may be slow

European commercial real estate.

A – ISSUE 21

RESEARCH

At the time of writing, the number of European non-listed debt funds had reached 39, representing targeted equity of €29 billion.

Furthermore €8.9 billion of capital was raised in 2013 for European non-listed debt funds, according to the INREV Capital Raising Survey

Loan origination strategy composition by number of funds

2014. This is a clear indication of commitment to this spectrum of the market.

Alternative lenders offered non-senior debt; however, in recent years this has evolved to a much wider offering. Of the €8.9 billion of capital raised, 48.8% was by senior debt funds, 26.2% by subordinated debt funds, while the remaining is apportioned to those funds that offer a mix of senior, subordinated and / or whole loans.

DIRECT LANDING This strong appetite for real estate debt, mainly driven by pension funds and life insurers, comes at a time when some traditional lenders are more proactively lending again. This has led to

DIRECT LENDING LOAN ACQUISITION LOAN ACQUISITION NOT REPORTED

increasing competition in some markets, where all sources of debt are chasing the same types of assets - good quality asset, good location, good

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam tristique tincidunt feugiat.

tenant - where the future potential is stronger than today’s proposition, and most importantly, to a borrower with strong supporting credentials.

EXPANSION OF NEW BUSINESS As such, select markets are seeing pressure on pricing and margins. This is certainly true of the German real estate lending market. Results from

Fund status composition by number of funds

the IREBS German Debt Project 2014 showed that more than half of the institutions surveyed expect to expand new business as well as growing their existing loan portfolios although citing the “increasing level of competition” to be “a major issue”.

As a result there has been a “noticeable move away from [the] narrow focus on core properties” towards more secondary space, which is the usual hunting ground for traditional lenders. In short,

LORUM IPSUM

there is limited supply for those who need or want

LORUM IPSUM

debt, juxtaposed with plenty of debt, for those

LORUM IPSUM

who do not need or want to leverage. However, with the development of new, sustainable and

LORUM IPSUM

secure sources of finance, the commercial real estate funding market is now more diversified than ever before, suggesting a move towards a

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam tristique tincidunt feugiat.

more balanced and varied provision of real estate debt for European real estate – potentially limiting the impact of any future credit crunch.

INREV QUARTERLY – 19

Fees highlight regional variations A global report highlights the need for greater comparability of funds across Europe, Asia Pacific and the US.

A – ISSUE 21

RESEARCH

With more investors considering fund investments outside their own region, the importance of comparable fee structures is growing.

To support transparency in this area, INREV joined forces

regions. Table 1 shows that in Europe and Asia Pacific, most

with ANREV and PREA to compare fees across Europe, Asia

core funds base their annual management fee on GAV at

Pacific and the US. The results show that there are still

46% and 63% respectively. However, the lead basis for core

significant differences in fee bases for annual management

funds in the US is NAV and commitment for those funds

fees but that metrics such as the total expense ratio (TER)

investing in non-US real estate.

can help investors.

For value added and opportunity funds, there is still no Annual management fees continue to be the bedrock for

consistency across the regions. In Europe, GAV is the most

most fee structures, as part of the suite of fund management

popular basis for 60% compared with drawn commitment

fees charged by managers. It is the most common of these

in Asia Pacific at 50% and invested equity in US only at just

types of fees across the three groups. However, there

32%. Within Europe, the most common basis for opportunity

continues to be variation in the fee bases, as seen in Figure

funds is “other”, meaning the fund managers do not tend

1. While the regions use a common set of metrics, in what

to use one of the more popular bases resulting in very

proportion they are used varies considerably.

little consistency. In Asia Pacific, the most common basis is commitment at 50% while both US samples favour invested

Figure 1 shows that there is variation both within each region

equity.

as well as across the three. Europe, Asia Pacific and the US only sample (PREA funds which invest only in US assets) have

Figure 2 shows what fund managers charge for each fee base

seven or eight different fee bases out of 11 recorded in the

by region. GAV-based fund management fees tend to show

survey while the non-US sample (PREA funds which invest

the most alignment with a 19 basis points spread within the

outside the US) has five.

Around 43% of the European funds use gross asset value (GAV) as a basis for fee calculation while 15% use net asset value (NAV) and 10% base

regions with Europe at the high

‘60% of the European sample by number bases its fee on GAV for added value funds.’

end at 0.61% and the lowest in Asia Pacific at 0.42%. The lower fees applied in Asia Pacific can partly be explained by investment style as GAV is most

it on property value. In Asia

typically applied by core funds

Pacific, commitment, drawn

in the region, while in Europe

commitment and GAV are the most popular bases with

and US, this fee basis is commonly applied by both core and

shares of 17%, 19% and 19% respectively.

value added funds.

While the US funds mostly use invested equity as a basis at 32% for the US only sample and 39% for the non-US sample,

There is a greater variation in what is charged for the

NAV and commitment are also commonly used. The “other”

commitment fees with Asia Pacific the highest at 1.93% and

category includes different costs which are used as a basis

the US only sample at 1.11. For commitment and drawn

such as net funded capital and scaled fees.

commitments, it is interesting to see that fee levels are lower in the US compared to Asia Pacific and Europe.

The figures in Table 1 do show there are some examples of consistency within some of the styles within the regions

In Asia Pacific, around half of the value added and

overall. For example, 60% of the European sample by

opportunity funds use drawn commitment and commitment

number bases its fee on GAV for value added funds. In Asia

as a basis respectively. In the US only sample, NAV is the

Pacific, 63% of core funds use GAV and 50% of value added

most typical fee basis for core funds, whereas invested equity

funds use drawn commitment. This shows that in some

is commonly applied to other styles within this sample.

styles in each region, a particular fee base dominates.

For core funds, there is also more consistency across the

With the regions showing inconsistency, total expense ratios INREV QUARTERLY – 21

(TERs) can help provide a foundation upon which to compare

By structure, the TER based on GAV is lower for open end

fees. This year’s INREV and ANREV studies included TER

funds than for closed end funds across both European and Asia Pacific samples though the

calculations; the US tends to use Return Reduction Metrics

‘60% of the European sample by number bases its fee on GAV for added value funds.’

(RRM).

Figure 3 shows that European funds had a higher NAV-based

difference is smaller in the Asia Pacific sample. This can mainly be explained by fund style, especially for the European sample where the majority of the core funds are open end.

TER than Asia Pacific funds, even though the GAV-based TER were almost at the same level.

The European sample showed a larger difference between

The global comparison report shows the importance of TERs

core and value added funds than the sample of Asia Pacific

and should highlight to fund managers the need to promote

funds.

transparency around fees to support investors in their investment decisions.

Sample and methodology The fees comparison report is based on individual Management Fees and Terms Studies for these regions.

The INREV study included 305 funds, which comprises 66% of the funds in the INREV Vehicles Universe while the ANREV study comprised 107 funds, representing 61% of the

A – ISSUE 21

funds in the ANREV Vehicles Database. The PREA study received responses from 164 vehicles, which included separate account mandates and joint ventures. The PREA study included funds targeting US investors independent of their target geographical market, which is a slightly different approach.

However, the majority of the vehicles in the PREA study invested in US assets.

RESEARCH

Annual fund management fee eases and rates

Fee base of the annual fund management fee

45% 28% 34% 38% LORUM IPSUM LORUM IPSUM LORUM IPSUM LORUM IPSUM

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam tristique tincidunt feugiat.

Ter rates by style 45% 28% 34% 38% LORUM IPSUM LORUM IPSUM LORUM IPSUM LORUM IPSUM

LORUM IPSUM LORUM IPSUM

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam tristique tincidunt feugiat.

LORUM IPSUM LORUM IPSUM

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam tristique tincidunt feugiat.

INREV QUARTERLY – 23

Growing green INREV members have performed well in the GRESB annual survey.

A third of INREV’s participants in the Global Real Estate Sustainability Benchmark (GRESB) survey gained a sought-after Green Star rating in 2014. The merit, awarded to 80 of the 241 INREV participants, indicates a property company is strong on green policies, and crucially, the implementation of them.

There was more good news for the

GRESB has provided an overview of

region in other areas of GRESB’s

performance by INREV funds. While

report, the fifth survey of its kind:

INREV has a good proportion of

Europe’s GRESB participation, mainly

Green Star ratings, these performers,

accounted for by INREV participants,

however, remain in the minority. The

achieved an 8% increase in its total

sustainability strategies of 32% of

score for the year. That improvement,

INREV’s members were considered

based on Europe’s total score of 47,

Green Talkers. Being placed in that

was based on performance in two

category denotes the respondent

categories - management and policy and

scored over 50 on management but

implementation and measurement.

less than 50 on implementation. Only

GRESB said that globally,

1% of the sample ranked over 50 for implementation and below 50 for

improvements had been made in the

management – the so-called Green

industry’s ability to put green plans or

Walk participants.

policies into practice. The GRESB global average score for implementation was

There are also many INREV members

43, versus 35 twelve months ago. These

(33%) classified as Green Starters.

gains mainly accounted for an increase

These participants scored below 50

in the overall score of 46 globally, said

in both categories but the results

GRESB.

reflected a large number of new participants in 2014 (543: 2013).

INREV supports GRESB and encourages

A – ISSUE 21

its members to participate, as it

However, GRESB’s survey was able

is an important measure of how

to reflect efforts made by INREV’s

sustainability is being adopted in the

non-listed property funds - which

non-listed property funds industry.

dominated Europe’s sample

In order to get a better idea of this,

- to improve implementation of its

PROFESSIONAL STANDARDS

sustainability policies overall.

implementation and monitoring of

half said members of an entity’s board

INREV participants registered a score

objectives. External taskforces are

of directors were rated like this too -

of 42 for implementation. While below

regarded as indicative of a structured

much higher than the global average

the global average of 43, the result

approach towards integration across

of 34%.

reflected an improvement on last

the organisation. Around 90% of

year - where the sector’s record on

INREV’s participants - higher than

POLICY & DISCLOSURE

implementation was 35.

the global average of 88% - have

Institutional investors and other

sustainability objectives in place. Most

shareholders are important drivers

Lower scores for management and policy were explained by a large number of first-time participants in the survey.

INREV members’ scored 59 for management, slightly lower than the previous year’s 61.

for increasing disclosure of

‘Participants are demonstrating how policies and management are being implemented, and the impact of this on their businesses.’

environmental, social and governance policies.

GRESB’s 637 respondents therefore score highly for disclosure of sustainability performance - which shows

However, this was higher than

participants are demonstrating

the global average of 54, as well

how policies and management

as management scores for Asia and

make these publicly available online.

are being implemented, and the impact

North America - continuing the sector’s

Crucially, these objectives are

of this on their businesses.

strong sustainability management

reinforced with staff resource; 93% of

record regarding its portfolio and

the INREV sample reported having a

But INREV’s non-listed funds were the

stakeholders.

sustainability task force, with healthy

highest scoring of all in this category

levels of input from high-ranking

with 90% disclosing sustainability

employees.

performance - higher than the global

MANAGEMENT Allocating staff resources to the

average of 84%.

management of sustainability is

Additionally, 80% include sustainability

seen by GRESB as key to the proper

factors in the annual performance

The results show that 66% of that INREV QUARTERLY – 25

targets of the employees responsible

sample does this in its annual report,

prevalent – with only 58% having rules

for a green entity - higher than the

63% in a standalone report, and

in place to address these issues. This is

global average of 75%.

79% has a dedicated section of their

also in line with the global average.

corporate website.

Just 9% of INREV participants had no

Almost all of the sample (95%) said

specific policies relating to specific

a dedicated employee - for whom

Over half of those that do publish

environmental issues, lower than the

sustainability is one of their core tasks

their sustainability performance (52%)

13% global average. These results

- is responsible for implementing an

have these results reviewed by an

exactly reflected the numbers in these

organisation’s green objectives. Only

independent third party. This is mostly

categories in 2013.

half leave this to external consultants.

in the case of those that disclose

This is in line with the global scores.

through an annual report (70%).

BUILDING CERTIFICATION AND

GRESB found taskforces in Europe’s

While 48% of those that produce a

BENCHMARKING

sample consisting of senior

standalone report have independent

GRESB investigates two types of

management, portfolio managers and

reviews. Only 10% of the INREV sample

building certifications: green building

asset managers. Decision-makers in

that published performance in an

certificates and energy ratings to reflect

these forum are a board of directors in

annual report did so in alignment with

respondents’ ability to demonstrate

47% of cases, or a senior management

INREV’s recommendations, guidelines

to both tenants and investors their

team in 39% of cases. Most (84%)

and frameworks.

commitments to improving a property’s

also have a formal process to inform

energy efficiency or sustainability.

decision makers about sustainability

It was the same for those reporting

performance.

performance in a standalone reports

In 2014, just below half (44%) of all

– again 10% did so in alignment with

GRESB participants globally obtained

Where sustainability targets applied last

INREV. Half of the sample said it

green building certificates for building

year, employees in a wide range of roles

reported according to Global Reporting

design, development and structure

were assessed on this basis. Around

Initiative guidelines.

during the construction phase. But in the INREV sample, this was the case

70% said asset managers were rated this way, and 62% said green targets

Specific policies on energy, GHG

for 30% of participants. BREEAM was

applied to portfolio managers.

emissions, water and waste are well

the most commonly used method in

Over half said senior management

covered by the INREV sample, and

Europe for non-listed vehicles. But on

team members of an entity (56%) also

broadly in line with global averages.

average 16% of the INREV sample had

had annual performance targets. And

But climate change policies are less

certificates from BREEAM, LEED or

A – ISSUE 21

PROFESSIONAL STANDARDS

France’s Haute Qualité Environnementale.

More, however, obtained certificates while the building was in occupation with 77% reporting that their portfolios included investments that

Loan origination strategy composition by number of funds

obtained certificates at this stage in a building’s life cycle. The global average was 30%.

Energy rating systems measure the intrinsic or actual energy performance of real estate assets, and in some European jurisdictions it is mandatory to obtain this data via EPC requirements. Therefore the number of 2014 participants with energy rating systems applied to buildings in their portfolio is relatively high in the European non-listed sector. In addition, 95% of the European sample included standing investments that obtained an energy rating via Energy Performance Certificates.

DIRECT LANDING DIRECT LENDING LOAN ACQUISITION LOAN ACQUISITION NOT REPORTED

METHODOLOGY Each year GRESB captures sustainability from property companies and private funds across seven categories. The score for each generates a

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam tristique tincidunt feugiat.

total GRESB score from 1 to 100. This total score is then divided into two dimensions: Management & Policy (MP), which has a weighting of 30% and Implementation and Measurement (IM), which is 70% of the total score. Each question on the survey is allocated to one of these categories.

Fund status composition by number of funds

LORUM IPSUM LORUM IPSUM LORUM IPSUM LORUM IPSUM

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam tristique tincidunt feugiat.

INREV QUARTERLY – 27

Europe leads reporting compliance INREV member reports have the edge over ANREV when it comes to compliance

A – ISSUE 21

PROFESSIONAL STANDARDS

Each year INREV conducts an annual review to measure compliance of European non-listed property funds with the INREV reporting guidelines.

Since last year, ANREV has also undertaken a similar study for Asian non-listed vehicles, which allows us to compare reporting practices across the two regions. This article compares the results of the two studies and highlights the main similarities and differences.

Loan origination strategy composition by number of funds

DIRECT LANDING This year’s reviews can be seen as a marker for compliance with the revised INREV Guidelines and where fund managers need to make adjustments to comply. Therefore, this year can be seen as a

DIRECT LENDING LOAN ACQUISITION LOAN ACQUISITION NOT REPORTED

transition year, and we expect to see this reflected in next year’s review.

The review focused on each funds’ individual

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam tristique tincidunt feugiat.

primary investor reporting format, which typically comprises an annual report, quarterly reporting and investor call presentations, and to what extent such reporting complies with the relevant parts of the latest INREV reporting guidelines.

The results from this year’s review of 2013

Fund status composition by number of funds

investor reports were determined based on a scoring scheme which reflects disclosures within each section of the revised INREV reporting guidelines: Fund Documentation, Content and Frequency of Reporting, General Vehicle Information and Governance, Capital Structure and Vehicle-level Returns, the Manager’s Report, the Property Report, Risk Management and INREV Net Asset Value (NAV) and Fee Metrics. The same scoring scheme was used by both INREV and ANREV to ensure a consistent methodology.

In Europe, information was received from 33 fund managers with reports covering 67 funds. Of these, 39 were included in the review. No more

LORUM IPSUM LORUM IPSUM LORUM IPSUM LORUM IPSUM

than two reports from the same fund manager were included as fund reporting is likely to be standard across a manager’s range of funds.

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam tristique tincidunt feugiat.

In Asia, ANREV had responses from 25 fund managers with reports covering 38 funds, all of which were all included.

INREV QUARTERLY – 29

The samples give a good picture of the differences between the two regions. Europe has a more mature market with a dominance of core funds, while the relatively young market in Asia has a high share of opportunity funds.

Overall, the INREV sample demonstrated more compliance than the ANREV sample at 75% versus 57%. Based on the share of funds that comply with more than 50% of the reporting guidelines, the difference is even bigger. At 97%, almost all funds in Europe complied compared to 58% for Asia with a median at 77% and 61% respectively.

It is unlikely that the structure of funds are responsible for these differences as the results in the INREV sample are well balanced between open end closed end funds. The more probable explanation is that the revised Guidelines are mainly derived from the European market practice.

The INREV Guidelines, originally tailored towards core funds, are well integrated in the more mature European market. In addition, some of the European funds use INREV NAV as their trading NAV and are therefore obliged to better comply with INREV reporting guidelines.

Another explanation may be that Asian funds, many of which do not have European investors and as such are not exposed to European market practices, were not able to anticipate some of the new requirements of the Guidelines, in particular around the disclosure of INREV NAV and fee metrics.

Furthermore, the INREV study showed a clear correlation between compliance with the INREV reporting guidelines and the use of IFRS (funds using IFRS had a 82% compliancy) while in Asian study, the correlation is not as strong. The main reason behind this result is the fund manager mix. Indeed, Europe has a more mature real estate market with more core funds using IFRS as reporting framework, with extensive disclosure. This may result in better compliance with the new disclosures requirement.

In both studies, the financial quantitative requirements of the reporting guidelines are usually well-complied with, while the newly-added qualitative requirements are followed less.

A – ISSUE 21

‘One of my priorities will be to further expand INREV’s interregional research programme.’

PROFESSIONAL STANDARDS

Key insights for the different reporting sections Fund documentation for reporting framework INREV members generally complied well with this section although there are some discrepancies among the respondents regarding the interpretation of some guidelines. Respondents questioned if all disclosures should be made in the fund’s constitution documents or yearly in the annual report.

ANREV respondents raised these same questions, resulting in higher levels of noncompliance.

CONTENT AND FREQUENCY OF REPORTING Across the two regions, both INREV (81%) and ANREV (80%) showed high scores results indicating good compliance with the Guidelines. However, newly added requirements to disclose the level of compliance with the Guidelines was extremely low and did pull the overall results down.

General vehicle information, organisation and governance In both the INREV and ANREV surveys, some fund managers considered the description of the fund and vehicles governance framework to

be static information which is available in the fund’s constitutive documents and that including such information in the annual or quarterly reports would make it redundant.

Capital structure and vehicle level returns. For the open-end funds, the compliance of both INREV (84%) and ANREV (83%) is similarly high. However, a significant difference exists for closed end funds (INREV 88% versus ANREV at 52%). This is mainly due to the fact that there is a lack of relevant benchmarks in Asia, especially for pan-Asian funds.

MANAGER’S REPORT The level of compliance for the Manager’s report section is higher for INREV (83%) than ANREV (69%).

PROPERTY REPORT The level of compliance on the property report for INREV members is in line with the overall average INREV compliancy. We noticed however, that some assumptions regarding the valuation model (disposal scenario, transfer tax and capital expenditures) were not always properly disclosed.

Similar trends were seen in the ANREV sample, with some additional disclosure omissions, regarding market data and trends that is reducing the level of compliance down to about 52% (versus about 75% for INREV).

RISK MANAGEMENT With an increasing focus on risk management, it is interesting to see that while fund managers in Europe complied relatively well with the risk management reporting guidelines, in the ANREV sample this section scored below average. Many of the Asian fund managers did not include much commentary on risk management beyond what was required by the relevant accounting standards (e.g. IFRS 7).

incurred taking into account the intended method of exit).

In Asia, many managers prefer to report INREV NAV only to individual investors upon request. As a consequence, the level of compliance is significantly lower in the ANREV sample.

The use of the Total Expense Ratio (TER) and Real Estate Expense Ratio (REER) Metrics has always been very low in both regions. Despite significant revisions, the level of compliance remains well below average but are already resulting in better compliance in Europe; 40% use TER and 24% use REER. The ANREV sample lags with a very low use of TER at 12% and REER at 6%.

OTHER DISCLOSURES – INREV NAV & FEE METRICS In Europe, the NAV reconciliation is generally well disclosed in the investor reports, with the exception of some of the adjustments that are not always used (such as the adjustment for the negative net equity for subsidiaries with nonrecourse), nor described (such as the estimate and disclosure of disposal costs likely to be

INREV QUARTERLY – 31

Passing the torch Regulatory issues move into professional standards domain

A – ISSUE 21

PROFESSIONAL STANDARDS

After the INREV public affairs programme was established in early 2011, the team and Public Affairs Committee quickly assumed responsibility for dealing with all issues related to regulations being developed in Brussels.

As INREV’s experts on all regulatory issues, they analysed,

However, a sub-group of the two committees is now going

commented on and informed INREV members about

even further by examining whether there should be a more

provisions related to the European Markets Infrastructure

far-reaching reflection of the AIFMD requirements in the

Regulation (EMIR), Solvency II Directive, Institutions for

INREV Guidelines. If they decide that there should be in

Occupational Retirement Provision Directive II (IORP II)

order to help members understand the links between INREV

and, of course, the Alternative Investment Fund Managers

guidelines and the regulatory requirements under AIFMD, the

Directive (AIFMD), among others, in rapid succession and

next question is what specific elements should be covered.

often even at the same time.

In this context, the group is working on adding manager’s Fast-forwarding to late 2014, each of those regulations

guidance to the INREV Guidelines. As the AIFMD addresses

has come into at least partial effect, while new regulatory

the manager itself and not only the investment vehicle,

proposals that could impact the non-listed real estate funds

additional requirements need to be reflected in the

industry are being developed in Brussels. The team and committee continue to engage in efforts to educate policy makers about the role and importance of real estate investment in Europe

guidelines. The groups are just

‘Professional standards will include regulated requirements into the INREV guidelines.’

starting their work but hope to reach conclusions and make recommendations in the first half of 2015.

and the potential impacts of

In another regulation-driven

regulatory proposals on our

project being taken up by the

industry. However, as many aspects of the regulations enacted

professional standards team, the Reporting Committee

in recent years have become incorporated into industry

and the Public Affairs Committee will examine what are the

structure and operations, INREV has increasingly focused on

property-level data requirements of Solvency II and IORP

supporting members to comply with these requirements in an

II Pillar 3. This information will then be used to determine

efficient and effective way.

whether those requirements could be more efficiently satisfied by fund managers using an expanded Standard Data

The professional standards team led by Maurits Cammeraat,

Delivery Sheet.

in particular, has taken up responsibility for including regulatory-related elements into relevant parts of the INREV

Both projects are designed to ensure that INREV members

Guidelines. One new project in particular stands out in this

understand the newly imposed regulatory requirements and

regard. As part of the revision of the INREV Guidelines project

satisfy them to minimise both the effort and costs involved.

that was completed in April of this year, a joint group of

Member participation in both projects in the months ahead

members of the INREV Corporate Governance Committee

will hopefully ensure that these goals are achieved.

and Public Affairs Committee reviewed the Guidelines to ensure that, in the first instance, that there were no inconsistencies between INREV corporate governance guidelines and AIFMD requirements.

INREV QUARTERLY – 33

Value Judgement Seeking out worth in heating markets With real estate in ever increasing demand across Europe, our investor and fund manager give their views on where and how to find value.

INVESTOR VIEWPOINT

of gaining exposure to the sector.

In order to find value in the market,

Real estate, in every shape

Debt has become readily available and

investors could look away from core

and form is well and truly

at margins that would have seemed

and towards alternative risks and

unthinkable just a few years ago.

strategies. These could include investing

back on the investment agenda. Given the relative pricing of bonds, investors

in different locations such as non-core

appear unable to get enough of the

Does the return of both equity and

or secondary cities, taking on leasing

yield that the asset class offers and are

debt mean that we are entering boom

risk or investing in assets with shorter

now willing to look at a variety of investment strategies in order to gain further exposure.

Following the downturn in the global economy between 2008 and 2011, it appeared property investors were only interested

lease lengths, buying in different

‘Structural reforms that have been undertaken have set these markets up for higher trend growth rates than France and Italy.’

in low risk assets that were

geographies, perhaps once again looking at Eastern Europe.

Another popular strategy has become to invest in emerging property types such as student housing or self-storage. The more adventurous are looking to once again start developing.

viewed as being relatively safe.

This has now changed. Investors are

territory or just returning to a healthy,

Now would appear the perfect time for

increasing their allocations across

functioning market? Both can be

risk tolerances to be reviewed and for

the board to real estate. Markets that

argued, but it certainly means, that the

investors to once again ensure that their

appeared to be permanently out of

perspective returns for real estate have

portfolios are well diversified. Investors

favour with investors, both geographies

fallen. Investors not keen to change

should remember not to put all of their

and sectors, are now seeing record

their acquisition strategy are looking

eggs in the same basket, limiting their

levels of investment. Lenders have

to use higher levels of debt to boost

exposure to any one of a variety of

also returned. One consequence of

returns. From a risk perspective this

strategies.

the downturn is that more European

makes little sense. The more leverage

investors are using debt as a means

that is applied to an asset the higher its correlation with other investments.

A – ISSUE 21

VIEWPOINTS

FUND MANAGER

trading at yields that are near to their

the overhang of space in some markets.

VIEWPOINT

previous cyclical lows but without

However, we think good quality assets

When we think about

the fundamental economic and

in these markets look attractively

finding value at present, it’s all about

occupier market recovery, it’s a high

priced, and the painful structural

rotation: from prime to secondary, and

price defensive income. In addition,

reforms that have been undertaken

from Northern Europe to Southern

without that fundamental economic

have set these markets up for higher

Europe. Despite interest rates rising,

recovery, the attraction of moving into

trend growth rates than France and

the flattening of the bond yield curve and increasingly competitive margins of debt should mean that real estate can provide attractive cash on cash yields even as property yields compress.

Italy. A second theme is the

‘Structural reforms that have been undertaken have set these markets up for higher trend growth rates than France and Italy.’

For the UK, this means that

Central and Eastern European markets, where we think the stronger economic growth forecasts coupled with an emerging middle-class makes for a potent mix. The problem is that this is “obvious” demand growth, and not undetected

rotating into good secondary

by developers. This means we

assets with some leasing risk in the

secondary cities for yield compression

need to be careful about oversupply

major UK cities is likely to continue

is less compelling than in the UK. As

and the Warsaw office market is a great

given the broad based recovery in

a result, we see two themes which

example at present – with the largest

occupier demand.

are arguably more attractive. The first

absolute volume of supply of any

On the continent, we see that the

is the Southern European recovery

European market excluding London.

market is rotating from the northern

markets. Yield compression has been

So, while the UK retains a place for

safe haven markets to the southern

incredibly rapid in Spain, and is starting

investors looking for value - albeit with

recovery markets and the Central and

to take place in Portugal. We also think

a focus on regional cities – in general,

Eastern European emerging markets.

investors could be over-estimating

we see a move from the northern safe

Prime property in Germany and

how quickly the economic recovery

havens, to the South and CEE.

France, and indeed Sweden, is now

translates into a rental recovery given INREV QUARTERLY – 35

The backbone of the INREV Guidelines may well be the series of principles, guidelines and recommendations that support best practice but without implementation these are just ideas.

Therefore, the Guidelines have always been focused on providing the right support to ensure that compliance and levels adoption are easily achieved by industry participants.

Guidelines in action We explain the series of tools and templates available

A – ISSUE 21

YOUNG PROFESSIONALS

This is done through a series of

standardised template, which they can

satisfactory corporate governance

checklists, tools and templates that are

then send to their investors.

or where the corporate governance

available in the Guidelines section of

is only acceptable in exceptional

the INREV website.

The SDDS provides many benefits to

circumstances. A traffic light system

both fund managers and investors

indicates which approach the user

The Guidelines include a number

including increased transparency and

identifies most closely with. However,

of tools that help you disclose your

performance monitoring, increased

“red” does not necessarily mean bad

compliance and level of adoption with

comparability and more efficient

governance as deviations can be due to

the INREV Guidelines and support your

operations. It comprises of different

the individual fund structures or other

day-to-day business. The first is the

worksheets including fund level and

appropriate reasons.

INREV Compliance Checklist, which is

investor level data, and portfolio

a downloadable check list for an annual

allocation. The SDDS also summarises

By comparing the features of their

report. It breaks down all the principles

all the requirements set out in the

own vehicle to the sample behaviour,

of the compliance modules that you

reporting module so using this tool

managers should be able to assess

have to follow. In addition, as it summarises all aspects of the Guidelines, it gives a useful picture of their scope. Other checklists are available for real estate debt funds and funds of funds.

where their fund sits on

‘The Corporate Governance selfAssessment tool takes the user through questions referring to best practixe within seven core principles.’

corporate governance for each feature individually, and then where the vehicle’s corporate governance sits as a whole. It then helps fund managers as an aid to disclose levels of adoption and then to explain any reasons

The advantage of the main

for not being compliant with

checklist is that it shows that the

best practices in certain areas.

user is fulfilling the requirements of the

helps you prepare fund documentation

This allows investors to have a clear

reporting module, INREV NAV as well

and annual reporting.

picture of the fund manager’s corporate

as the fee and expense metrics, which

governance.

are all compliance modules. It ensures

While the reporting guidelines, INREV

the fund manager can be sure that

NAV calculation and the fee and

After using the compliance checklist

reporting aligns with all current market

expense metrics are compliance

and compiling your self-assessment

practice requirements and will meet

modules, the Guidelines’ best

results, INREV also offers help with

investor requirements.

practice modules leave a margin for

communicating levels of compliance

implementation.

to investors. The INREV Compliance

To be complying with INREV NAV and

Decision Tree is a flow diagram

the fee and expense metrics means to

To define the level of adoption for the

available on the website, which helps

calculate/value funds with comparable,

best practice modules, the Guidelines

the user understand if they are in line

stable figures that are tailored to the

offer a self-assessment tool. At present,

with the Compliance Modules of the

non-listed real estate market. The

the tool covers only the corporate

Guidelines, and what is the level of

alternative is reporting individual

governance module but there are plans

adoption for the best practice modules.

figures which lack comparability for

to create further tools for the valuation

investors on a European level while

and liquidity guidelines soon.

In addition, the INREV Compliance Framework is a table that offers the

different calculation methods also means there is less transparency and

The Corporate Governance self-

compliance objective, self-assessment

comparability.

Assessment tool takes the user

process, disclosure and oversight

Ongoing reporting is a focus for the

through questions referring to best

and assurance for each module. This

Guidelines where INREV provides

practice within seven core principles.

helps achieve the main aim to present

support through the Standard Data

Each area considers the questions

investors with a clear and accurate

Delivery Sheet (SDDS). This aims to

that are relevant to understanding

picture of the degree of best practice

standardise the information exchanged

the corporate governance issues.

adoption and level of compliance with

between a fund manager and an

Then, for each question, sample

the INREV requirements. An Example

investor. Fund managers use this Excel

behaviour is identified which

Statement is also available on line to

sheet to enter their fund details in a

exhibits good corporate governance,

provide users with further support.

INREV QUARTERLY – 37

TEMPLATES

DUE DILIGENCE QUESTIONNAIRES

Another type of tool offered by INREV is templates. First, is

Also, at this earlier stage of fund development, investors are

a Capital Calls & Distribution template, which is offered in

going to require substantial due diligence information about

Excel and allows users to complete information about each

the product. The three Due Diligence Questionnaires

capital call and distribution to help with a systemised tagging

created by INREV mean there can be a clear exchange of

of transactions at the investor level.

information between fund managers and investors, which not only enables investors to

The Debt and Derivatives Disclosure Notes also provides ready-made tables to present information on financing and hedging arrangements to investors. The notes cover

‘Due diligence questionnaires are now available for non-listed real estate funds, funds of funds and debt funds.’

have comparable information across different products but saves fund managers time but being able to produce a document which covers most questions from investors.

loans and borrowings, foreign currency exposure and

Due diligence questionnaires

derivative financial instruments.

are now available for non-listed real estate funds, funds of funds and debt funds.

INREV also provides support at the initial stages of a fund with its template for a Structure of a Private Placement

Young professionals looking to understand further about

Memorandum. This means that as relationships begin

the INREV Guidelines should go to Guidelines section of the

to progress from initial conversations to more detailed

www.inrev.org to find out more, or look out for training and

discussions about the investment, fund managers can

education opportunities (see box).

provide a document that fully explains the investment in a clear and consistent manner. This template proposes a minimum table of contents for the private placement.

TRAINING AND EDUCATION INREV’s training and education programme also offers opportunities to get a quick insight in the Guidelines.

Webinars are regularly held for members and include the following topics: - INREV NAV in French, German, English - Sustainability - Global Real Estate Index See page 20 for the 2015 training calendar

A – ISSUE 21

TUTORIALS There website includes short video introduction of all modules by an industry expert.

TRAINING COURSES Several of INREV’s training courses relate to the INREV Guidelines including: - Fund valuation and reporting - Effective due diligence in today’s market - Advanced NAV and fee metrics

RECENT PUBLICATIONS

Recent publications Keep up-to-date with the latest market trends To provide members with a better overview of research results, we provide a two-page snapshot of each report. The detailed results are also available in full report format. To view the publications related to each report, visit www.inrev.org.

INREV QUARTERLY INDEX Q3 2014.

A quarterly performance index for European non-listed real estate funds. A quarterly performance index for European non-listed real estate funds.

TAX BRIEFING: IMPACT OF BEPS ON REAL ESTATE INVESTMENT A briefing from the tax committee on a topical subject. A briefing from the tax committee on a topical subject.

REVIEW OF REPORTING BEST PRACTICE 2014 An annual look at current market practices of investor reporting and the extent to which reporting complies with the INREV Guidelines.

INREV FUND TERMINATION STUDY 2014 An annual look at the strategies adopted by funds due to terminated over the coming two years. An annual look at the strategies adopted by funds due to.

MANAGEMENT FEES AND TERMS - GLOBAL 2014 An overview of the fee structures and fee levels of non-listed real estate funds. An overview of the fee structures and fee levels of non-listed real estate funds.

AN OVERVIEW OF 2013 PERFORMANCE FOR FUNDS OF FUNDS An overview of the fee structures and fee levels of non-listed real estate funds. An overview of the fee structures and fee levels of non-listed real estate funds.

INVESTMENT CASE FOR CORE NON-LISTED REAL ESTATE FUNDS A guide for new and existing investors on the benefits of core non-listed real estate funds. An overview of the fee structures and fee levels of non-listed real estate. An overview of the fee structures and fee levels of non-listed real estate funds.

TRANSPARENCY & PERFORMANCE OF THE EUROPEAN NON-LISTED REAL ESTATE FUND MARKET An academic paper to examine the recent evolution of the non-listed real esatte fund market with respect to transparency and performance. An overview of the fee structures and fee levels of non-listed real estate funds.

DOWNLOAD PUBLICATIONS

REAL ESTATE IN THE REAL ECONOMY A report to explores real estate’s role in the European economy. An overview of the fee structures and fee levels of non-listed real estate funds. An overview of the fee structures and fee levels of non-listed real estate funds.

Visit inrev.org/library/ publications or email

INREV DEBT DUE DILIGENCE QUESTIONNAIRE (DDQ)

webmaster@inrev.org

DDQ addressing the special features and characteristics of real estate debt vehicles. DDQ addressing the special features and characteristics of real estate.

INREV QUARTERLY – 39

Industry job moves The latest job moves in non-listed real estate estate investment approaches and

Holding, grouping the insurer’s real

their implementation on behalf of

estate, private equity, infrastructure,

institutional investors. Prior to this

renewable energies and fund

post, he held different positions at DIL/

investment activities. Before that, he

Deutsche Bank-group, KGAL, HSH Real

was a member of the management

Estate and Commerz Real.

board at Dresdner Bank, where he was responsible for the corporate client

In addition, Andreas Strey has been

business.

appointed as Senior Fund Manager

NABIL MABED

and Michael Krzyzanek has joined the

IVG has also appointed Rolf Glessing

company as Senior Investment Analyst.

as CFO. Glessing is trained as an

Strey previously worked at UBS Real

auditor and previously held senior

Estate in various positions, most recently

management positions at various

as Senior Portfolio Manager.

companies, including as Managing Director at the Merckle Group and as

MABED APPOINTED IN FRANCE

Krzyzanek previously worked for

CFO of residential property landlord

Pramerica Real Estate Investors has

accountancy firm KPMG and fund

Gagfah. He most recently worked as an

appointed Nabil Mabed as Head of

manager Aberdeen Immobilien. Most

independent management consultant.

Transactions for France. Mabed will

recently, he worked as a fund manager

be responsible for underwriting and

with Patrizia Gewerbeinvest.

M&G REAL ESTATE APPOINTS NEW HEAD OF CAPITAL RAISING

executing new business. He joins from private equity fund manager Doughty

BERGMANN JOINS PATRIZIA

M&G Real Estate has hired Lucy

Hanson where he has worked since

WOHNINVEST

Williams as Director of Institutional

2009 as Senior Associate in charge of

Patrizia Immobiliën has appointed

Business for the UK and continental

origination, underwriting and closing

Peret Bergmann as the new

Europe, replacing Chris Nash who has

of acquisitions in France, Benelux and

Managing Director of its spezialfonds

left the group. In her new role, Williams

southern Europe.

for institutional investors Patrizia

will lead M&G Real Estate’s business

WohnInvest KAG. Bergmann is a lawyer

development team, spearheading

New faces at Warburg – Henderson

specialising in property and tax law

capital raising activities in the UK and,

Andreas Beckers has joined the

and was previously General Manager

in collaboration with M&G’s institutional

Management Board of Warburg -

in the founding of a Service Alternative

fixed income business, across

Henderson Kapitalanlagegesellschaft

Investment Fund Manager (AIFM).

für Immobilien mbH. He will work

Before that, he held a management

alongside Eitel Coridaß and Andreas

role at Bouwfonds Management.

Ertle as part of the Management Board and will be responsible for product

IVG APPOINTS CEO AND CFO

development, institutional sales and

German listed property company IVG

marketing. He joins from Art-Invest

Immobilien has appointed Ralf Jung

Real Estate Funds GmbH where, in

as its new Chief Executive. Jung most

his current role as Director Business

recently worked as a partner with a

Development, he is responsible

business consultancy, prior to which he

for the development of new real

was CEO of Allianz Alternative Assets

A – ISSUE 21

RALF JUNG

continental European markets.

Management Schluter.

Williams brings 20 years of experience of building businesses across a variety

MÄSSING AND FORSMAN JOIN

of industries, including construction and

GENESTA

real estate funds management. She joins

Genesta has appointed Gunnar

from Ignis Asset Management, having

Mässing as Senior Retail Advisor

previously spent six years heading

in the company’s retail team and

up business development, investor

Niclas Forsman as an Associate in

relations and marketing at Lothbury

the transactions team. Mässing was

Investment Management.

CEO of Kista Galleria KB/AB from 2003 until 2013. His role will be to focus

MARINA JESTIN

of office this year.

ALLIANZ REAL ESTATE NAMES NEW

on strategy, business planning and

HEAD OF RETAIL

shopping centre management. Much

CORNERSTONE NAMES NEW CEO

Allianz Real Estate has appointed

of his time will be spent developing the

Scott Brown, Cornerstone’s President,

Marina Jestin as new Head of Retail.

company’s retail and shopping centre

will take on the additional role of Chief

In her new role, Jestin will work on the

management capabilities, as well as

Executive Officer (CEO). He succeeds

retail strategy and will support Allianz in

sourcing new investments.

David Reilly, who is stepping down as

growing its proportion of retail assets in

CEO after nearly two decades at the

the global portfolio while optimising the

Forsman joins Genesta from Catella

company. Reilly will be transitioning

existing retail portfolio Jestin, who will

Corporate Finance in Stockholm,

to the role of Vice Chairman in

be based in the Paris office, has over

where he spent the past four years as

January. In this new position, he will

20 years’ experience in the real estate

Associate Director. He will be based

focus on strategic issues and special

industry having held a number of senior

in Stockholm where his skills and

assignments. Brown is being appointed

positions at Unibail-Rodamco and

experience will be deployed as part of

as CEO less than a year at the firm,

most recently at Viparis, a consortium

the Genesta transaction team covering

having taken over as President from

of 10 congress and exhibitions venues

the Nordic market.

Reilly when he joined Cornerstone in

in Paris. At Unibail Rodamco, she

February. Brown previously served

worked as Group Managing Director

INTERNOS APPOINTS GREENWOOD

as Americas head of CBRE Global

of Operations around Europe, in

TO ITS INVESTMENT BOARD

Investment Partners, where he

charge of implementing the group

Internos Global Investors has

managed global investment, portfolio

strategy, methodology and value

appointed retail expert Jenefer

management, client service and

creation process, reporting to the Chief

Greenwood to its Investment Board as

product and business development.

Operation Officer.

a Non-Executive Director. Greenwood brings a wealth of UK and continental

VELDKAMP JOINS VALAD

AEW EUROPE HIRES IN GERMANY

European retail experience to Internos

Valad Europe has appointed Marcel

AEW Europe has hired two senior

with over 30 years specialising in the

Veldkamp as Asset Manager in the

executives to further strengthen

sector.

Netherlands. He managed global

its platform in Germany. Arndt

investment and portfolio management.

Rellecke has joined the German

She started her career with Hillier

He will be responsible for managing

investment team of AEW Europe

Parker, where she most recently held

assets in Utrecht and the east of the

as a Director based in Dusseldorf.

the position of Executive Director

Netherlands. Prior to this, he spent four

He will have a particular focus on

and Head of Retail following the

years as portfolio manager at VastNed

securing and executing logistics

merger with CBRE in 1998. She was

Offices/Industrial in Rotterdam.

investments for AEW Europe. Rellecke

then with Grosvenor for 10 years,

joins AEW Europe from Goodman

where, in 2010, she was appointed

Europe where he worked since

Director of Sales and Lettings for

2008, based in Dusseldorf. He has

Grosvenor Britain and Ireland. In 2004,

worked for a number of leading real

Greenwood was appointed a Crown

estate investment firms over his 22

Estate Commissioner and served on

year career. Also joining the asset

the board of the Crown Estate, chairing

management team in Germany is

its Remuneration Committee for four

Tim Schluter from CR Investment

years until the completion of her term

SOURCES: PropertyEU Press release PropertyFundsWorld PERE Please send your job moves to alfio.shkreta@inrev.org

INREV QUARTERLY – 41

A view from Asia Strong attendance at ANREV’s Annual Conference in Hong Kong as the industry discussed capital flows on the move.

In October, I attended the sixth ANREV Annual Conference in Hong Kong which brought together 250 ANREV representatives, of which 51% were fund managers, 18 % were investors and fund of funds managers.

This was another well attended

(GDP) expected to remain around

and endorses: standardisation and

7-7.5% in the next couple of years and

customisation, transparency, control

neutral macroeconomic policies.

and governance and globalisation.

Simon Mallinson from Real Capital Analytics presented the first results

PROFESSIONAL STANDARDS

of the back testing of the ANREV

Before the Annual Conference, I met

Investment Intentions Survey and

with managers in Japan to present

noted that the correlation in Asia

the new INREV Guidelines. Many fund

Pacific between intentions and

managers expressed interest and

transactions is much higher than in

we expect to see more adoption and

Europe, expecting that the year-end

compliance in Japan in the coming

correlation percentage might be

years. The INREV Guidelines have

between 80% and 90%.

already been translated into Japanese

conference for ANREV where 81% of attendees represented the industry in Asia and 19% in Europe and the US, so it proved again an excellent forum for interaction and exchange of

to facilitate their promotion and

‘An excellent forum for interaction and exchange of views.’

views. This year the conference

we hope to have them available on the online tool soon.

A Standard Data Delivery Sheet (SDDS) briefing session by ANREV members from PwC

focused on Capital on the move

An interesting session confronting

in Asia. For his keynote speech, Dr Fan

limited partners’ and general partners’

more than 40 professionals in Hong

Gang, one of China’s most prominent

points of view, respectively represented

Kong early November. Similar to INREV,

economists, shared his views on

by Maarten van der Spek, Senior

we have also recently completed a

China’s growth prospects as it edges

Analyst at PGGM and Willem de Geus,

review of investor reporting against the

towards becoming the world’s largest

ANREV Executive Board Chairman,

new reporting module of the INREV

economy. He was optimistic about the

on the future of funds allowed the

Guidelines. An interesting comparison

future, forecasting a soft landing for the

audience to hear about the trends in

in terms of compliance of funds in the

economy with gross domestic product

the industry that ANREV fully supports

two regions can be found on page 17.

A – ISSUE 21

and Langham Hall attracted

EVENTS CALENDAR

Events calender 2015

20 JAN

INVESTMENT INTENTIONS ROAD SHOW

21 JAN

INVESTMENT INTENTIONS ROAD SHOW

22 JAN

INVESTMENT INTENTIONS ROAD SHOW

27 JAN

INVESTMENT INTENTIONS ROAD SHOW

28 JAN

London

Amsterdam

Munich

Cophenhagen

INVESTMENT INTENTIONS ROAD SHOW

21 APR

INVESTOR ROUND TABLE

21 APR

ANNUAL GENERAL MEETING (AGM)

22 & 23 APR 21 MAY

Barcelona

Barcelona

ANNUAL CONFERENCE Barcelona

ADVANCED TAX ROUND TABLE Amsterdam

YOUNG PROFESSIONALS SEMINAR

Stockholm

11 JUN

29 JAN

INVESTMENT INTENTIONS ROAD SHOW

23 SEP

NORTH AMERICAN SEMINAR

10 FEB

INVESTMENT INTENTIONS ROAD SHOW

14 OCT

AUTUMN CONFERENCE

11 MAR

CANNES SEMINAR

19 NOV

CFO ROUND TABLE

Paris

Cannes

Amsterdam

New York

Frankfurt

London

REGISTER FOR EVENTS Visit inrev.org/events or email events@inrev.org.

INREV QUARTERLY – 43

Training calender 2015

20 JAN

CURRENT ISSUES IN DEBT FINANCING FOR NON-LISTED

02 & 03 JUL

10 FEB

FUND STRUCTURING: TAX AND LEGAL ASPECTS

17 & 18 SEP

03 MAR

FUND VALUATION AND REPORTING

19 MAR

INVESTOR RELATIONS AND COMMUNICATION

Munich

FINANCIAL ANALYSIS FOR INDIRECT INVESTMENTS

FOUNDATION COURSE Copenhagen

24 SEP

NORTH AMERICAN TRAINING COURSE

RISK MANAGEMENT FOR NON-LISTED PROPERTY

Stockholm

20 OCT

21 APR

CURRENT ISSUES IN REGULATORY AFFAIRS: SOLVENCY II

05 NOV

REGULATORY COMPLIANCE COURSE AIFM DIRECTIVE AND EMIR

20 MAY

EFFECTIVE DUE DILIGENCE IN TODAY’S MARKET

18 NOV

LIQUIDITY ISSUES IN TODAY’S MARKET

18 JUN

ADVANCED NAV AND FEE METRICS

01 DEC

PERFORMANCE MEASUREMENTS AND

Milan

New York

Luxembourg

REGISTER FOR TRAINING COURSES AND WEBINARS Visit inrev.org/training or email training@inrev.org

A – ISSUE 21

INREV QUARTERLY – 45

UPCOMING PUBLICATIONS

What’s coming up?

December 2014

January 2015

February 2015

Impact Of Regulatory

Investment Intentions 2014

Investment Intentions -

Compliance On Non-Listed

February 2015 Style Classification Comparison

A Global Comparison

February 2015

March 2015

INREV Quarterly Index, Vehicles

Secondary Markets

Universe, Debt Funds Universe Q4

& Liquidity Study

2014

DOWNLOAD PUBLICATIONS Visit inrev.org/library/publications or email webmaster@inrev.org

INREV info INREV Strawinskylaan 631, 1077 XX Amsterdam, The Netherlands +31 (0)20 799 3960 INREV Square de meeûs 23, 1000 brussels, belgium +32 (0)2 213 81 61 info@inrev.org

A – ISSUE 21

www.inrev.org INREV is the European Association for Investors in Non-Listed Real Estate Vehicles.

Our aim is to improve the accessibility of non-listed real estate vehicles for institutional investors by promoting greater transparency, accessibility, professionalism and standards of best practice. As a pan European body, INREV represents an excellent platform for the sharing and dissemination of knowledge on the non-listed real estate industry.

CREDITS Produced by INREV Designed by‘ Booreiland

© VERENIGING INREV This document, including but not limited to text, content, graphics and photographs, are protected by copyrights. You agree to abide by all applicable copyright and other laws as well as any additional copyright notices or restrictions contained in this document and to notify INREV in writing promptly upon becoming aware of any unauthorised access or use of this document by any individual or entity or of any claim that this document infringes upon any copyright, trademark or other contractual, statutory or common law rights and you agree to cooperate to remedy any infringement upon any copyright, trademark or other contractual, statutory or common law rights.