Best performance of Australian funds since inception of the ANREV index

• Australian funds return 4% in Q3 2015
• Core funds return 3.4%, up for four consecutive quarters
• All funds return 2.2 % for Q3 2015

Data contributions were received from 94 funds with a total gross asset value of US$90.5 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 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.

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 2015.

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 2015 update release includes the performance of 454 funds compared to 389 funds as of Q2 2015. This difference is due to the inclusion of US closed ended value-added and global funds for the first time (global funds that have a global target strategy).

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

The ibis Novena Hotel Singapore was awarded BCA Green Mark Platinum Award by the Building Construction Authority of Singapore in March 2015. It is an international 3 star, 10-storey, 241 room hotel completed in April 2011. It sits on four contiguous freehold sites located in the heritage-rich Balestier and Novena area. The hotel is within ten minutes walk to Novena MRT station, just 6 stations away from the Central Business District in Raffles Place and 2 stations away from the main shopping district at Orchard Road.

This is a sustainability case study on improving building energy efficiency. It was a partnership between GPT, the manager of 800-808 Bourke Street, Melbourne and its tenant, National Australia Bank (NAB). The programme commenced in 2012 and the building has since cut its energy use by 29 per cent.

In this issue, we have included: 

Lastly, we would like to thank our working group who helped putting together the Newsletter.

For details of this working group, please click here

This is the first fund termination study done by ANREV. The survey intend to examine the options fund managers consider as the termination date of their fund approaches. The survey covers funds that are due to terminate in the coming two years together with funds that have been liquidated previously. We received participation from 35 funds managers about 52 non listed funds in Asia Pacific with a combined gross asset value (GAV) of US$17.2 billion.

We are pleased to present the first product of our Global Standards Steering Committee, and to update members on three global projects.

The NCREIF PREA Reporting Standards and INREV Guidelines: Broad Comparison 2015, highlights the most important differences between the INREV Guidelines that we endorse in Asia Pacific and the NCREIF PREA Reporting Standards and proposes steps to bring them into closer alignment. The report is based on a study prepared by Deloitte NL and focuses on five areas of convergence: definitions, fees and expense ratios, reporting, valuation, and NAV and fair value accounting. Two projects are currently underway to take the next step towards global reporting standards in these areas of convergence.

The Global Definitions Project strives to develop a common glossary of terms – an essential component of any converged standard.  A taskforce has been assembled and milestones are being established. This project will be on-going throughout the conversion process.

The Fee and Expense Project is converging the NCREIF PREA Reporting Standards Real Estate Fees and Expenses Ratio (REFER) with the INREV Total Expense Ratio (TER) to create a single global standard – a critical component to understand manager performance for a fund or vehicle. A taskforce has been assembled and has commenced work.  We anticipate substantial completion of the Fee and Expense Project for use in the Management Fees Term Study: A Global Comparison Study that will be published by ANREV, INREV and PREA in 2016

The Reporting Project will harmonise qualitative and related quantitative reporting elements globally.  We are currently seeking volunteers to form the third project.

The Global Standards Steering Committee was established in early 2015 as a collaboration between ANREV, INREV, NCREIF and PREA to jointly develop a global set of information reporting and disclosure standards, on a non-exclusive basis, which apply and are relevant to the private/non-listed real estate vehicle industry in order to support efficiency and best practice as well as the flow of capital in this industry sector. For further information about any of our projects or if you are interested in participating, please contact Amelie Delaunay, ANREV Director of Research and Professional Standards.