Industry seeks convergence of approach toward costs of real estate investments
26 June 2018, Amsterdam – INREV, ANREV, NCREIF and PREA have jointly developed a new total global expense ratio (TGER) – the first globally consistent measure for real estate investment vehicle fees and costs.
The main aim of the proposed TGER is to help investors more easily assess and compare the fees and costs of individual vehicles. The TGER has been shared through a consultation paper circulated to the members of each of the four industry associations involved earlier this year. The consultation period closed on 21June.
In addition to facilitating comparisons, the TGER bridges gaps in technical descriptions and definitions to ensure greater consistency of language and points of reference between investment managers and investors across all geographic regions.
Spearheaded by the Global Standards Steering Committee that prioritises and directs the Global Standards initiative the proposed TGER was developed through global industry collaboration over 18 months. It responds directly to one of the most pressing challenges currently facing investors, which is about finding an effective way to monitor the fees and costs associated with the capital deployed across international markets.
Commenting on the consultation paper, Lonneke Löwik, INREV’s CEO, said: ‘A globally consistent TGER and its related disclosures would mark a step forward for the non-listed real estate industry. It would promote greater transparency and global capital flow by enabling investors to make better comparisons across investments and to facilitate their investment decision making.’
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Notes to Editors
INREV, the European Association for Investors in Non-Listed Real Estate Vehicles, was launched in May 2003 as a forum for investors and other participants in the growing non-listed real estate vehicles sector. The association represents and reflects an industry with a total value of €2.1 trillion and INREV members deliver €300 billion of stimulus to the real economy of Europe.
INREV has 425 members which include 75 of the largest institutional investors as well as 40 of the 50 largest real estate fund managers, plus banks and advisors across Europe and elsewhere.
The non-profit association is focused on increasing the transparency and accessibility of non-listed vehicles, promoting professionalism and best practice, and sharing knowledge. It is based in Amsterdam, the Netherlands.
ANREV is the Asian Association for Investors in Non-Listed Real Estate Vehicles, a not-for-profit organisation based in Hong Kong. ANREV's agenda is driven by the members, in particular the investors, and is focused on improving transparency and accessibility of market information, promoting professionalism and best practices, sharing and spreading knowledge. Fund managers, investment banks, lawyers and other advisors provide support in addressing key issues facing the Asian non-listed private equity real estate fund markets.
ANREV is a sister organisation to INREV in Europe and works with a number of associations across Asia Pacific and North America on research and professional standards. http://www.anrev.org
Founded in 1979, the Pension Real Estate Association (PREA) is a non-profit trade association for the global institutional real estate investment industry. PREA currently lists over 700 corporate member firms across the United States, Canada, Europe and Asia. Our members include public and corporate pension funds, endowments, foundations, Taft-Hartley funds, insurance companies, investment advisory firms, REITs, developers, real estate operating companies and industry service providers. http://www.prea.org
Based in Chicago, the National Council of Real Estate Investment Fiduciaries (NCREIF) is the American association of institutional real estate professionals who share a common interest in their industry. This includes investment managers, plan sponsors, academicians, consultants, appraisers, CPA's and other service providers who have a significant involvement in institutional real estate investments. They come together to address vital industry issues and to promote research. NCREIF acts as a non-partisan collector, processor, validator and disseminator of real estate performance information, including several quarterly indices. https://www.ncreif.org