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In a constantly evolvingworld, even a traditional sector such as real estate changes and innovates. In the view of KPMG, the future of real estate is directly linked with innovation. The startupsof today are the potential industry leaders of tomorrow. Incumbent firms that not only want to survive, but also thrive, should constantly follow developments and trends of these innovations and startupsas there are numerous lessons to be learned. KPMG gives a comprehensive overview examples and insights into the innovations and startups that might shape the future real estate landscape. Startus have been categorized by several innovation topics based on current market trends, including:

• digitizing processes
• flexible workspace
• healthy workplace
• innovative constructions
• internet of things
• new ways of funding
• platforms to connect
• sustainable innovations
• virtual Reality & 3D mapping

The purpose of the document is to provide insight into the current innovative developments in the real estate market. The information provided for each startup includes key information such as name, country of origin, founding year, key words and website details. Not all startupsare ‘live’ or in full production yet, leaving room for innovations that might disrupt the sector at a later stage. Next to the general classification of startups into nine innovation topics key words are included to describe each startup using specific and recognizable characteristics. Besides key information the publication provides a short summary of the company and the respective product.

There are significant challenges in our world today, ranging from deep income-inequality to climate change. There are also advances in understanding and analysis that allow us to take a pragmatic approach to a critical but seemingly elusive question: how can we leverage capital markets to improve not just risk-adjusted returns, but our society as a whole? In other words, how can we create sustainable value?

To answer to this question, State Street conducted a global survey of almost 600 institutional investors who are, or are planning to implement Environmental, Social and Governance into their investment process. In this study, they also surveyed 750 individual investors, including both ESG and non ESG investors, and interviewed 25 executives. The goal is to provide a pragmatic approach to ESG integration that delivers on the principle of sustainable value creation through risk-adjusted returns.

Friederike Schmidt from bepartners presented on the new Investment Tax Code and recent federal court decisions’ impact on non-listed real estate investment in Germany.

The INREV Due Diligence Questionnaire (DDQ) assists investors and consultants in the due diligence process to understand a fund manager’s structure, strategy and non-listed real estate business. It also gives insight in a specific vehicle’s strategy, risk processes, management, terms and projected performance. With it, investors can determine, in principle, whether a proposal fits their investment objectives.

DDQ was updated in July 2018. New version reflects the feedback received from INREV members during a two-month consultation period.

With commercial real estate finance sector witnessing a dramatic shift in attitudes towards sustainability agenda, leading lenders are now exploring new opportunities that go well beyond risk management through sustainability initiatives that drive new business, strengthen customer relationships and improve the data they hold on the buildings in which they have an interest.

The report outlines the drivers and opportunities to lenders by showcasing best-practice examples, including:

• Improved borrower engagement, where ING Bank and ABN AMRO have used innovative technology as an engagement tool to help their borrowers identify energy improvement measures that will provide both a financial return and improved environmental performance;
• New lending products, where Lloyds Bank has launched its Green Lending Initiative;

Deep integration of sustainability practices, where Better Building Partnership (BBP) members Hermes Investment Management and TH Real Estate have taken learnings from their longstanding direct real estate investment funds and are applying this to the newer debt side of their business.

The report also issues a call to action urging real estate lenders to recognise the significant opportunities available, explore the commercial and reputational prizes to be won and collaborate to develop standards that will help products and services to become mainstream.

The Funds of Funds Study 2018 provides an overview of the fund of funds industry globally, including insights by target region, by style and structure and other associated characteristics, as well as detailed analysis of the performance of funds of funds. The study is international in scope, and is conducted in conjunction with ANREV in Asia Pacific.

There’s broad agreement within the industry that we need to establish a more structured and common approach to pricing policies. To accelerate the debate INREV and AREF are pleased to present a consultation on Open End Fund Pricing. 

In November 2017 INREV and AREF presented a consultation paper on Open End Fund Pricing, feedback was reviewed by the focus group and a conclusion of Phase 1 was released in July 2018.

The INREV Young Professionals Conference was held in Budapest on 5 and 6 July under the theme 'Remaining resilient through change'.

Jeff Rupp, INREV Director of Public Affairs, highlighted proposed Commission and Parliament amendments that will determine how changes to regulations impacting real estate managers’ use of interest rate and currency swaps to manage risk will be addressed in upcoming trilogue negotiations.