Chairman's
Letter

Dear Members

April 2019

The year 2018 marked two important milestones for INREV and the industry, the association’s 15 year anniversary and 10 years since the global financial crisis. As an association and an industry, we’ve come a long way.

This was a fitting time for the association to pause and listen to our members, to reassess and further understand the intrinsic needs of our growing membership community. We did this through a consultation with the members, known as the Vision Project. We were eager to learn how INREV can continue to provide value and adapt accordingly to a rapidly evolving non-listed landscape. The project unearthed insights helping us in solidifying the foundations for a robust, and future-proof association.

Our community is collectively recognising the need to further align to achieve greater transparency, easier access to the European non-listed market to improved capital flows with increasing global harmonisation. Every organisation, big or small is undergoing a digital transformation to varying degrees. It is not just a technological shift that is happening in the world of real estate, but an organisational change which is taking place at the intersection of technology, business and people.

The evolution of data and its heightened significance has proved to be very evident, highlighting a shift to more data driven investment decisions. INREV has responded to this trend with a multitude of plans and ambitions as set out in the IT roadmap, with plans to create a more connected, streamlined way for members to contribute and analyse data relevant to their business needs. In support of more data driven, intelligent investment decisions, INREV increased the Quarterly Index coverage back to Q2 2000, launched an IRR Index and the Asset Level Index made exceptional progress, surpassing the €100 billion target by the end of the year, well set for its launch in April 2019.

Extending the theme of globalisation and transparency, we introduced TGER, the first globally comparable measure of fees and costs; launched a revamped version of the DDQ – INREVs most popular tool. The revamped DDQ which is aligned with the Guidelines and Global Definitions database features sections on ESG, another topic that has grown more significant not just to the industry but to INREV over the last year. In October, we launched our own ESG Month campaign with a variety of activities including trainings, events, webinars and a feature article in the November IQ. An increased focus on sustainability of the built environment is also reflected in the revised edition of ‘Real Estate in the Real Economy’ which was released in 2018 to educate policy makers on our significant industry contribution.

We saw increased participation in research, with the Management Fees and Terms Study recording its highest participation from members committed to harmonisation and transparency. This sentiment was reflected in the 2018 Investment Intentions survey which recorded that just 30% of Investors see the lack of alignment of interest as one of the biggest barriers to investing in non-listed real estate compared to 63% recorded in the 2012 survey.

Increased participation was seen across the board with 2374 delegates, representing 73% of our corporate members, attending an INREV event in 2018, training attendance up by 15% compared to 2017, the INREV/Henley Certificate had its first 5 alumni in 2018 and the Tax and Regulatory Briefing calls spiked in popularity.

Thank you to everyone who participated and contributed to the association this year, in particular to the committee, focus group and advisory council members. It is with such dedication that our association can continue to exist and deliver value for its membership and be a true community that will continue to be relevant for years to come.

Marieke van Kamp

INREV Chairman