Management Fees and Terms Study
The INREV Management Fees and Terms Study explores the fee and costs structures of the European non-listed real estate vehicles, with a focus on the Total Global Expense Ratios (TGERs) and Real Estate Expense Ratios (REERs).
The Management Fees and Terms Study provides TGERs and REERs for several fund characteristics, including investment style, structure, fund size, vintage, target gearing, country strategy and sector strategy.
The study was launched in 2007 and is now published annually in September – October. In 2023, an additional analysis was conducted to provide the latest insights into management fees of the European open end diversified core equity (ODCE) funds, which is now an annual publication. In 2024, the first release of the Global ODCE Management Fees Publication was published, providing the first global comparison of the Total Global Expense Ratio (TGER) and produced by the Global Alliance – a joint initiative established by ANREV, INREV and NCREIF.
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European ODCE funds recorded an even greater consistency of fees and costs in 2024
Key highlights include:
- This increase in TGER based on NAV could be explained by slightly higher gearing levels for ODCE funds.
- The average 2024 management fees decreased by 3 bps while vehicle costs increased only slightly year-on-year.
- Funds with GAV above €2 billion reported lower vehicle costs.
- The average REER increased by 4 bps to 0.97% in 2024, and there was a smaller range of REERs compared to 2023.
- Property acquisition costs contributed approximately one-third of REER on average and had the largest dispersion.
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Jose Monsalve
Senior Research and Analytics Manager