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.