The ANREV Australia Core Open End Fund Monthly Index (ACOE) saw a total return of 0.33% in May 2019. The ACOE includes 19 funds with a total GAV of AUD 117.07 billion

From this month going forward, the ACOE index will also report data on geographic allocation by sectors.

Please contact Amélie Delaunay at [email protected] or Daisy Huang at [email protected] if you have any questions regarding the Index.

Tokenisation uses Blockchain to enable different ownership models. The purpose of this paper is to provide a non-technical person with an understanding of the technology, it’s possible uses and impacts on the real estate industry. Two key challenges of the real estate market for the last 400 years when compared to other investment asset classes are the slow pace of transactions (it takes ages for ownership to be transferred) and liquidity (the purchase price is so large that only a limited market of buyers exists). There have been many innovations over the years (Such as Private Equity Funds, securitisation and REITS) that have sought to address these issues but the Proptech community thinks it has a better solution that could dramatically change fund raising and transactions. After reading this readers should be able to make their own judgement about the technology.

If members have any questions, or require a more detailed explanation of any of the points referenced in this note, please contact the ANREV Technology and Innovation Working Group at the following e-mail address: [email protected]

Despite the buzz-worthy nature of its nomenclature, co-living is not a new trend, but merely the re-envisioning of an old one. A living environment whereby tenants share resources and space in exchange for lower costs and cultural commonalities harkens back to socially-minded communes of the 1960’s, and further still to the boarding houses of the 19th Century.

In this paper, Unger and Tan from Invesco talked about the current landscape of the co-living market, and discussed its investment opportunities and implications to the real estate industry.

ANREV has launched the sixth release of the ANREV Pan Asia Open-End Diversified Core Fund Index (ODCI).

For this release, ANREV has added the number of assets. The total number of assets as of Q1 2019 is 148.

Please provide feedback and comments to Kip Kong at [email protected] or Amélie Delaunay at [email protected]

With the release of the Financial Stability Board’s Final Recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD) and increasing expectations from investors and Australian regulatory bodies, there has been a growing impetus for companies to assess and report the risks posed by climate change.

Investa identified the TCFD Recommendations as an opportunity to work alongside investors to determine best practice reporting. With this in mind, they directly engaged investors to better understand investor expectations and co-define a best practice approach to disclosing climate risk. The result of this engagement was the development of a three-year phased approach to refine key material risk and associated financial exposures. The following case study details the first phase of these works, the identification of key material climate related risks and opportunities.

The 10 largest managers represent 40.1% of the overall asset under management

• Total real estate AUM grew by 12.0%, from US$2.8 trillion in 2017 to US$3.2 trillion in 2018
• For the first time in the survey’s history the largest manager breached the US$200 billion mark
• The top five managers represent more than a quarter of total real estate AUM

As of 31 December 2018, the total real estate assets under management (AUM) was US$3.2 trillion compared to US$2.8 trillion at the end of 2017. Non-listed real estate represents a significant portion of total real estate assets under management. Of the US$$3.2 trillion total AUM, non-listed accounts for 84.0% or US$2.7 trillion.

The Blackstone Group tops the list with US$230.6 billion of gross asset value (GAV) of non-listed real estate assets under management. Following closely, Brookfield Asset Management ranks second with US$187.3 billion of total real estate AUM. PGIM occupies the third position with US$168.9 billion of global real estate AUM.

The ANREV Australia Core Open End Fund Monthly Index (ACOE) saw a total return of 0.35% in Apr 2019. The ACOE includes 19 funds with a total GAV of AUD 110.21 billion.

Please contact Amélie Delaunay at [email protected] or Daisy Huang at [email protected] if you have any questions regarding the Index.

In May's issue, we have included:

British Virgin Island

• Guidance notes for country by country reporting available

Cayman Island

• Economic substance requirements for certain entities

China

• China introduced new Foreign Investment Law

Hong Kong

• SFC publishes guidance on enhanced disclosures for green or ESG funds

• IRD issues circular and explanatory notes on stamp duty exemptions for securities transfers under open ended fund company structure

Luxemburg

• Luxembourg ratifies the BEPS Multilateral Instrument

Malaysia

• Finance Bill 2018: Review of real property gains tax (“RPGT”) rates

Singapore

• Developers (Anti Money Laundering and Terrorism Financing) Act 2018 passed

• Public consultation on proposed legislative amendments for the corporate income tax treatment of Variable Capital Companies (“VCCs”)

• Singapore Budget 2019: extend and refine tax incentive schemes for funds managed by Singapore-based fund manager companies

• Singapore Budget 2019: recovery of GST for qualifying funds

• Singapore Budget 2019: lapse of the Property Tax (Tourist Projects) Order

South Korea

• National pension service adopts the Stewardship Code

Lastly, we would like to thank our committee who helped putting together the Newsletter. Details about this committee can be found here.

Grosvenor Asia Pacific’s Hong Kong and Shanghai office refurbishments have both been awarded the International WELL building Institute’s™ (IWBI™) Gold Level Certification for the WELL Building Standard™ (WELL™). Both the Hong Kong and Shanghai offices were also awarded LEED Gold and Platinum, respectively.

ANREV (the Asian Association for Investors in Non-Listed Real Estate Vehicles) is the leading, not for-profit provider of trusted, up-to-date and in depth data and research for Asia Pacific real estate investors.

Our membership base includes over 200 global and regional real estate investors, fund managers, industry advisors and academics who collaborate with us to ensure we deliver to their needs. Through regular surveys and a dedicated team of researchers, we are able to collate and deliver an exceptional level of relevant primary data and information to provide investors with comparison evidence, applicable to their APAC real estate portfolios.

ANREV is an impartial source for non-listed real estate industry data that can be used to create investment models, track and measure investment returns and guide strategic decision making. Our Annual Research and Data Package provides a service for investors that is time-efficient, accurate and up to date.

For more information on how to subscribe to our Annual Research & Data Package, contact:

Eunjin Choi - Associate Director, Membership

(T) +852 3108 2791 /  [email protected]