EXECUTIVE SUMMARY

• The nascent signs of a new economic pattern marked by higher interest rates and increased inflation has begun to show. This
“reflation” environment will have direct implication for U.S. property markets and the economy as a whole.

• Commercial property has long been considered to be an asset class that provides some degree of protection from the pernicious
effects of inflation, and historically, in rising interest rate environments, investors have been willing to allow the yield spread to
compress for some period of time.

• Property sector performance is likely to reflect underlying property market fundamentals more than capital market changes as long as
the economic and property market fundamentals do not change significantly.

Data contributions were received from 84 funds with a total gross asset value of US$93.6 billion. The All Asia Index headline return was 10.6% in local currency for 2016 compared with 12.1% in 2015.

Further detail of the sub-indices which cover fund style and various geographies can be found in the full report.

We would like to thank all the companies that supported the data collection exercise and look forward to your continued support in the next round of data collection next year.

Together with the release of Annual Index 2016, ANREV has recalculated the Q4 2016 Quarterly Index. Members can move to ANREV Analysis Tool to check out the updated result.

To participate in the ANREV Index, please contact Henry Lam at [email protected] to take part in this industry-led initiative or if you have any questions about the ANREV Index.

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In this issue, we have included: 

ANREV would like to thank the Regulatory and Tax committee who compiled the newsletter.

For further details on the committee, please click here.

With the popularity of the Asia Pacific non-listed real estate market continuing to increase, it is timely to assess how much capital is entering the market and what this figure represents on a global basis.

The Capital Raising Survey was first launched in 2014. This survey gives an insight into capital raising activities within the non-listed real estate industry by region, product type and investment strategy. The non-listed real estate products include separate accounts, joint ventures, club deals, funds of funds and non-listed real estate debt products. The report offers detailed insights into global and regional capital raising figures.

The 2017 survey attracted a record number of participants with 162 fund managers globally completing the questionnaire, a 6% increase compared to 2016 when 153 fund managers responded to the survey. 80.2% of those surveyed raised a combined US$128.4 billion for non-listed real estate throughout 2016.  The Asia Pacific region attracted US$22.9 billion of equity, the only region to see an increase of capital raised in comparison to 2015. 

Garden Square is the oasis in the Jing’an district, Shanghai. Completed in 2013, with a 10,000 sqm garden full of greenery and paths that allows busy people to feel at ease, Garden Square aims to be one of the most environmental friendly and unique commercial buildings in Shanghai.

In 2016, it has undergone further improvements and achieved LEED platinum certification. It has achieved the highest score within the LEED scale for office in China and thereby it has set the new standard for office buildings in China. 

It is an index showing the performance of non-listed real estate funds on a global scale and is created by ANREV, INREV and NCREIF. This publication includes the performance figures up to Q4 2016.

The GREFI was updated for the first time on a quarterly basis following the first quarterly release of the ANREV Index for Q1 2014. From Q1 2014 onwards, the GREFI has been updated 12 weeks after the quarter end. This index release follows the same structure of previous releases. The technical specification has also updated and all numbers are also available in an Excel file.

The GREFI Q4 2016 update release includes the performance of 479 funds compared to 489 funds as of Q3 2016. The GREFI includes funds in Asia Pacific (86), Europe (277), US (98) as well as funds with a global strategy (18). GREFI funds represent US$616.7 billion of total gross asset value with 49% in US funds, 32% in Europe, 15% in Asia Pacific and the remainder in global funds.

Please send your queries on this release to [email protected].

Sustained performance for all funds in Q4 2016

• The ANREV All Funds index returned 2.48%
• Core funds returned 3.08%
• Value add funds returned 3.96%

Data contributions were received from 86 funds with a total gross asset value of US$96.5 billion. Further detail of the sub-indices which cover fund style and various geographies can be found in the full report.

We would like to thank all the companies that supported the data collection exercise and look forward to your continued support in the next round of data collection in May.

To participate in the ANREV Index, please contact Amélie Delaunay at [email protected] or Henry Lam at [email protected] to take part in this industry-led initiative or if you have any questions about the ANREV Index.