Welcome to the June 2019 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 2019.

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 GREFI All Funds Index delivered a total return of 1.48% over the first quarter of 2019, down from 1.88% previously., according to the latest release of the Global Real Estate Fund Index (GREFI).

Key highlights:

• Europe outperformed Asia Pacific and US with a total return of 1.53% over Q1
• Non-core funds outperformed core funds with returns of 2.14% and 1.37% respectively

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 [email protected] , [email protected] or [email protected].

The ANREV Quarterly index goes back in time. The index shows the performance of Asia Pacific non-listed real estate funds on a quarterly basis going back to Q1 2005.

•The ANREV All Funds index returned 1.51% in Q1 2019, a slowdown from previous quarter.

•Opportunity funds returned 2.67% outperforming value added and core funds’ returns of 1.77% and 1.38% respectively.

Data contributions were received from 94 funds with a total gross asset value of US$125.3 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 at [email protected] or Kip Kong at [email protected].

Japan has a shortage of private day care centres for children. Waiting lists are common and costs are high for most families. To promote family-friendly practices, in all ESR Japan warehouse projects over 100,000 m2, children’s day care centres (called Barnklübb) will be developed. These day care centres are being created to attract more female employees and ease their burden of balancing parenting with working outside the home.

The ANREV Australia Core Open End Fund Monthly Index (ACOE) saw a total return of 0.33% in May 2019. The ACOE includes 19 funds with a total GAV of AUD 117.07 billion

From this month going forward, the ACOE index will also report data on geographic allocation by sectors.

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

Tokenisation uses Blockchain to enable different ownership models. The purpose of this paper is to provide a non-technical person with an understanding of the technology, it’s possible uses and impacts on the real estate industry. Two key challenges of the real estate market for the last 400 years when compared to other investment asset classes are the slow pace of transactions (it takes ages for ownership to be transferred) and liquidity (the purchase price is so large that only a limited market of buyers exists). There have been many innovations over the years (Such as Private Equity Funds, securitisation and REITS) that have sought to address these issues but the Proptech community thinks it has a better solution that could dramatically change fund raising and transactions. After reading this readers should be able to make their own judgement about the technology.

If members have any questions, or require a more detailed explanation of any of the points referenced in this note, please contact the ANREV Technology and Innovation Working Group at the following e-mail address: [email protected]

Despite the buzz-worthy nature of its nomenclature, co-living is not a new trend, but merely the re-envisioning of an old one. A living environment whereby tenants share resources and space in exchange for lower costs and cultural commonalities harkens back to socially-minded communes of the 1960’s, and further still to the boarding houses of the 19th Century.

In this paper, Unger and Tan from Invesco talked about the current landscape of the co-living market, and discussed its investment opportunities and implications to the real estate industry.

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

For this release, ANREV has added the number of assets. The total number of assets as of Q1 2019 is 148.

Please provide feedback and comments to Kip Kong at [email protected] or Amélie Delaunay at [email protected]

With the release of the Financial Stability Board’s Final Recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD) and increasing expectations from investors and Australian regulatory bodies, there has been a growing impetus for companies to assess and report the risks posed by climate change.

Investa identified the TCFD Recommendations as an opportunity to work alongside investors to determine best practice reporting. With this in mind, they directly engaged investors to better understand investor expectations and co-define a best practice approach to disclosing climate risk. The result of this engagement was the development of a three-year phased approach to refine key material risk and associated financial exposures. The following case study details the first phase of these works, the identification of key material climate related risks and opportunities.

The 10 largest managers represent 40.1% of the overall asset under management

• Total real estate AUM grew by 12.0%, from US$2.8 trillion in 2017 to US$3.2 trillion in 2018
• For the first time in the survey’s history the largest manager breached the US$200 billion mark
• The top five managers represent more than a quarter of total real estate AUM

As of 31 December 2018, the total real estate assets under management (AUM) was US$3.2 trillion compared to US$2.8 trillion at the end of 2017. Non-listed real estate represents a significant portion of total real estate assets under management. Of the US$$3.2 trillion total AUM, non-listed accounts for 84.0% or US$2.7 trillion.

The Blackstone Group tops the list with US$230.6 billion of gross asset value (GAV) of non-listed real estate assets under management. Following closely, Brookfield Asset Management ranks second with US$187.3 billion of total real estate AUM. PGIM occupies the third position with US$168.9 billion of global real estate AUM.

The ANREV Australia Core Open End Fund Monthly Index (ACOE) saw a total return of 0.35% in Apr 2019. The ACOE includes 19 funds with a total GAV of AUD 110.21 billion.

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