EXECUTIVE SUMMARY

• A panel data regression analysis was undertaken on a unique, unbalanced panel of APAC non-listed real estate funds to determine the role of leverage in hedging against actual and unexpected inflation with a focus on core funds.

• There is evidence that APAC non-listed real estate funds provide hedging against inflation and that the use of debt enhances their hedging capabilities.

• Furthermore, the results show that while leverage enhances a fund’s inflation hedging capability at moderate levels, its benefits are not unrestricted.

• The results imply that investors can extract information about inflation hedging abilities of non-listed real estate funds from capital structure data, promoting efficient investment decisions.

• The significance of the results may be influenced by the size of the dataset (119 APAC non-listed real estate funds invested in more than 10 countries across the three styles over the period of 2006-2014).

This webinar session was successfully held on 18 January 2017.

For members who have missed the webinar and interested to view the recordings, please download from below.

NB: The video is connected via YouTube. 

Summary

The ANREV Index is a suite of indices which measures the performance of Asia Pacific non-listed property funds. The indices are composed to reflect the post-tax financial performance of the Asia Pacific non-listed property funds market, taking into account fees and leverage. Core, value-added and opportunity funds are included in the suite of indices produced, along with country, structure and sector specific indices.

Global Real Estate Fund Index (GREFI) is a joint effort among ANREV, INREV in Europe and NCREIF in the United States. The aims of the GREFI are to improve transparency of real estate as an asset class and to help the index users make better informed investment decisions. It is of paramount importance to the real estate industry that NCRIEF, INREV and ANREV collaborate to produce robust global and intra region comparisons.

The webinar provided updates of the ANREV Quarterly Index and GREFI as of Q3 2016.

In June 2013 Cromwell Property Group acquired a portfolio of 6 assets from the New South Wales Government (GPNSW) with a lease back provision, including a Green Lease that required the parties to work towards achieving a number of prescribed sustainability objectives.

The objective of this case study is to identify the process that Cromwell followed in partnership with stakeholders to develop and implement the EMPs under the GPNSW Green Lease.

ANREV is pleased to present the results of its fourth global Investment Intentions Survey with a specific focus on non-listed real estate funds. The survey was conducted in conjunction with the European Association for Investors in Non-listed Real Estate Vehicles (INREV) and the Pension Real Estate Association (PREA). By joining the forces of all three organizations, the survey is able to present a truly global view on expected trends and investment intentions within the real estate industry. This is the tenth edition of the regional survey which attracted 199 respondents in Asia Pacific compared to 221 in 2016: 93 investors (47%), 10 fund of fund managers (5%) and 96 fund managers (48%).

Chapter 2 explores global real estate allocations, providing insight into investment trends globally and is based on the full sample of respondents. This is a common section that can also be found in the INREV and PREA 2016 Investment Intentions reports.

Chapters 3 through 6 focus on the Asia Pacific real estate market, including insights on preferred structures, markets, sectors, styles and trends. These chapters are based only on those investors, fund managers, and fund of fund managers who are already invested in the Asia Pacific market or intend to do so in the next two years.

In the final chapter, for the third time, we have invited Real Capital Analytics (RCA) to present its analysis of the relationship between the predictions within ANREV Investment Intentions Survey 2016 and the investment activities that transpired during the past year using its database of global transactions in that particular year.

The document is a distillation of information provided to ANREV by non-listed property vehicles, as well as publicly available information of other non-listed property vehicles, in order to give a view on the size and composition of the Asia Pacific non-listed property funds market over a particular period of time.

If you have any questions, please contact Henry Lam at [email protected]

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 Q3 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 Q3 2016 update release includes the performance of 489 funds compared to 477 funds as of Q2 2016. The GREFI includes funds in Asia Pacific (94), Europe (278), US (101) as well as funds with a global strategy (16). GREFI funds represent US$606.9 billion of total gross asset value with 49% in US funds, 31% in Europe, 16% in Asia Pacific and the remainder in global funds.

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

Improvement of the performance of Asia Pacific non-listed real estate funds in Q3 2016

• The ANREV All Funds index returned 2.58%
• Core funds returned 2.98%
• Opportunity funds’ performance back in positive territory

Data contributions were received from 94 funds with a total gross asset value of US$95.9 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 February.

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.