Over the past decade, fund sponsors have increasingly used GP-led liquidity transactions to provide liquidity options to LPs, to rebalance portfolios, and to manage assets that have stabilized or need additional capital/time.  The impact of the COVID-19 outbreak is expected drive further growth in transactions.  During this briefing, Damian Jacobs of Kirkland & Ellis, Nicholas Miles of Lazard Private Capital Advisory and Rahul Ghai of Partners Group provided an overview of the market and of GP-led liquidity transactions.

Welcome to the June 2020 update of the Global Real Estate Fund Index (GREFI). It is an index showing the performance of non-listed real estate funds on a global basis and is created by ANREV, INREV and NCREIF. This publication includes performance figures up to end of Q1 2020.

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

The history of the Global Real Estate Fund Index (GREFI) has been extended to Q1 2005, now offering almost 15 years of performance across all regions. 

The GREFI All Funds Index delivered a total return of 0.28% over Q1 2020, down from 1.78% posted over Q4 2019, according to the latest release of the Global Real Estate Fund Index (GREFI).

Key highlights:

• Total returns stood at -1.36% for Asia Pacific funds, 0.22% for European funds and 0.98% for US strategy funds over Q1 2020
• GREFI Non-core funds posted the lowest return since the last 10 years, with a quarterly performance of 0.22% over Q1 2020.

From Q3 2018 edition onward, the GREFI Index will no longer include US closed end value added funds (NPI - CEVA Index)

Please send any queries to Daisy Huang , Kip Kong or Amélie Delaunay.

During this briefing, a panel of leading industry specialists explored the longer-term opportunities and key considerations for investing in logistics and data centers in Asia Pacific.

• ANREV’s All Funds index returned -1.36% in Q1 2020, down from 2.52% in Q4 2019.

• All style enters negative territories with core funds returning -0.93%, -2.83% for value added and -4.35% for opportunity funds.

Data contributions were received from 95 funds with a total gross asset value of US$136.6 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.

If you have any questions about the ANREV Index or want to take part in this industry-led initiative, please contact Daisy Huang or Kip Kong.

The ANREV Australia Core Open End Fund Monthly Index (ACOE) saw a total return of -0.44% in May 2020. The ACOE includes 19 funds with a total GAV of AUD 111.00 billion.

The ACOE index also reports data on geographic allocation by sectors.

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

During this briefing, a panel of experts explored the APAC market trends in the midst of uncertainty. Brian Hung of APG, John Pattar of KKR, Nick Chukiat of UBS Asset Management and David Green-Morgan of Real Capital Analytics shared with us their views from different perspectives.

 The 10 largest managers represent 40% of the overall AUM which is on par with levels observed in previous years.

• Total real estate AUM grew by 14.0%, from US$3.2 trillion in 2018 to US$3.6 trillion in 2019
• The three biggest managers reported real estate AUM above US$175 billion
• The three biggest managers reported real estate AUM above US$175 billion

As of 31 December 2019, total real estate assets under management (AUM) stand at US$3.6 trillion compared to US$3.2 trillion at the end of 2018. Non-listed real estate represents a significant portion of total real estate assets under management. Of the US$$3.6 trillion total AUM, non-listed accounts for 82.2% or around US$3 trillion.

With US$278.7 billion of real estate AUM, The Blackstone Group tops the overall list. Brookfield Asset Management posted total real estate AUM of US$201.9 billion, securing them second place. In third position was PGIM with US$179.2 billion of real estate AUM.

The two largest managers in Asia Pacific, CapitaLand and ARA Asset Managers, are way ahead of the rest both with total real estate AUM above US$60 billion.

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

Please provide feedback and comments to Kip Kong or Amélie Delaunay.

During this briefing, a panel of experts explored the impact of COVID-19 to Australian's Hotel sector and how ESG fitting into the plan. Amélie Delaunay of ANREV, Dr Sabine Schaffer of Pro-Invest, Ruben Langbroek of GRESB and Carlos Flores of NABERS shared with us their views from different perspectives.

The Hong Kong Government gazetted the new Limited Partnership Fund Bill on 20 March 2020.  The Bill had its first reading on 25 March 2020 and is expected to become law later this year.

Specifically designed for private funds and enabling the establishment of onshore funds in Hong Kong, this historic legislative reform will deepen and strengthen the ecosystem that supports the funds industry and better position Hong Kong for growth as a leading asset management hub in the Asia Pacific region.

Join to hear from the HKMA and experts from EY and Sidley on the implications to our industry.