Bringing global transparency to non-listed real estate

As the non-listed real estate industry becomes increasingly global and with international capital flows growing exponentially over the last decade, INREV aims to reflect these realities as far as possible. Although a European organisation representing the European non-listed industry, INREV knows that it must also cater to the needs of players from outside Europe, and continue to be the gateway to  the insights, expertise and contacts in European non-listed real estate if the European market is to operate effectively. In essence, this means furthering transparency, best practice and accessibility for European non-listed real estate and harmonising such efforts globally.

In essence, this means furthering transparency, best practice and accessibility for European non-listed real estate and harmonising such efforts globally

INREV members will be well aware that it has been working for some time now with global partners – ANREV in Asia Pacific and both NCREIF and PREA in North America – to pursue these objectives, while the scope of this co-operation is deepening and widening.  To enhance this collaboration, in May this year INREV, ANREV and NCREIF signed a Global Alliance Memorandum of Understanding (MoU) to advance their global agenda.

To enhance this collaboration, in May this year INREV, ANREV and NCREIF signed a Global Alliance Memorandum of Understanding (MoU) to advance their global agenda

So far, the outputs from global collaboration have included market indices, research projects and industry standards. They started in 2013 with the development of the Global Real Estate Fund Index, while the latest global data product to emerge, the Global IRR Index, was published on 29 April 2020. This index tracks the money-weighted performance of closed end funds in Asia Pacific, Europe and the US since their start-date. 

The organisations are also working to harmonise many of the regional indices that they produce individually – for example the ODCE indices that cover open-end diversified core equity funds with a regional strategy – where methodologies may not yet be completely aligned.  In addition, they are collaborating to develop newer indices such as the INREV Asset Level Index, where INREV is benefiting from the experience of NCREIF, who have produced a similar index for the US over many years.

Meanwhile, the partnerships are delivering a growing number of aligned research products, such as the annual Investment Intentions Survey, Capital Raising Survey and Fund Manager Survey. In addition to their regional focus, these reports also include a global overview that they produce in common.  These reports give a clear picture of how investors’ ambitions and activities are evolving globally and the variations that there may be from region to region. 

Meanwhile, the partnerships are delivering a growing number of aligned research products, such as the annual Investment Intentions Survey, Capital Raising Survey and Fund Manager Survey.

The third key area of global collaboration is in developing global standards such as the Global NAV and Total Global Expense Ratio.  These standards have a crucial role in allowing best practice to come to the fore in vehicle management and have built on earlier work to define Global Data Standards. Meanwhile Global Performance Measurement Standards are also in the pipeline, potentially allowing investors to compare vehicle returns on a like-for-like basis around the world. An important step towards producing global standards is the Global Definitions Database, this glossary of common non-listed real estate terms, many of which have been agreed upon at the global level.