16 January 2018, London – Fifty six percent of global investors plan to increase their exposure to real estate over the next 24 months, targeting an average 10.2% of total capital allocation. This would amount to a minimum commitment of just over €51 billion this year. Data from the global Investment Intentions Survey 2018, published today by INREV, ANREV and PREA, suggest continued positive sentiment toward real estate in general, and non-listed real estate in particular. The survey reinforces a continuing favourable upward trend. Regionally, investors from Europe are expected to make the most significant allocations to real estate, accounting for 57.7% of total investment capital in 2018. North American investors will likely commit 25.2%, while those from Asia Pacific are forecasting 17.1%. Europe is also the regional destination of choice likely to attract an anticipated 41.2% of allocated capital, followed by the Americas (35.2%) and Asia Pacific (17.4%). However, given that more than half of this allocation will come from Europe the region could see a net outflow, while the Americas could see a net inflow, of capital.
A total of 47 European non-listed real estate funds are scheduled to terminate between now and 2019, returning a potential €8.5 billion to the market, according to new research from INREV, the European Association for investors in Non-Listed Real Estate Vehicles. The Funds Termination Study 2017 also found that, for the first time in four years, extension has overtaken liquidation as the preferred strategy when it comes to termination decisions.
INREV, ANREV, NCREIF and PREA are pleased to jointly unveil the Global Definitions Database (GDD). The GDD represents one unique depository of definitions comprising of real estate market related terms. A common glossary of terms is a critical step towards convergence of reporting standards for institutional real estate investment vehicles and creates a one-stop resource that has not existed until now.
The total value of real estate assets under management (AUM) reached €2.4 trillion in 2016, up 20.1% on the €2 trillion peak achieved the previous year, based on an increase in the sample size of the global Fund Manager Survey 2017. The joint report by INREV, ANREV and NCREIF, also revealed significant growth in the average AUM of the top 50 global real estate fund managers with a 14.9% uplift from €35.6 billion in 2015 to €40.8 billion.
The Netherlands posted the strongest non-listed real estate performance on record with total returns of 14%, according to the INREV Annual Index 2017. Despite this boost, annual returns across Europe dropped to 6.0% in 2016 from a nine-year high of 9.7% in the previous year. Much of the fall was driven by weaker performance in Q2 and Q3 which stemmed from much lower valuations in the UK during the turmoil of a Brexit referendum.
Marieke van Kamp,has been announced today as INREV’s new Chairman at the association’s Annual Conference in Berlin. As Head of Private Markets at NN Group, Van Kamp is responsible for the real estate, private equity and private loan portfolios of the NN insurance companies. NN Group is a leading Dutch insurance and investment management company that was created out of the ING Group, active in 18 countries.