With the Paris Agreement ratified and the forthcoming release of the Financial Stability Board's Taskforce on Climate Related Financial Disclosure, there has seemingly never been more global momentum responding to the challenge of climate change. Furthermore, reporting from the UNPRI and the UN Environment Programme's Finance Initiative highlights both the physical and transition risks posed by Climate change. As Asset managers, how can we ensure our assets are best prepared for rising temperatures, increased extreme weather event frequencies and electricity shortages, as the world shifts to a low-carbon economy with the associated impacts on markets and global capital flows as mangers seek to reduce the carbon risk of their portfolios.

This short webinar discusses on the implication of these global trends on Real Estate investment and the property sector.

The INREV Sustainability Reporting Guidelines have been revised to form a disclosure framework that delivers meaningful data to increase visibility and insight into a vehicle’s ESG efforts and also details their next course of action for improvements. We aim to provide a coherent framework for ESG reporting in line with annual financial reporting from 2017 and present a clear picture from the vehicle’s strategy through to environmental key performance indicators.

At this webinar, you will receive updates and guidance on the implementation and consistent reporting methodologies the INREV Sustainability Guidelines with a session especially focused for Asian Investors.  

EXECUTIVE SUMMARY

• The nascent signs of a new economic pattern marked by higher interest rates and increased inflation has begun to show. This
“reflation” environment will have direct implication for U.S. property markets and the economy as a whole.

• Commercial property has long been considered to be an asset class that provides some degree of protection from the pernicious
effects of inflation, and historically, in rising interest rate environments, investors have been willing to allow the yield spread to
compress for some period of time.

• Property sector performance is likely to reflect underlying property market fundamentals more than capital market changes as long as
the economic and property market fundamentals do not change significantly.

Data contributions were received from 84 funds with a total gross asset value of US$93.6 billion. The All Asia Index headline return was 10.6% in local currency for 2016 compared with 12.1% in 2015.

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 next year.

Together with the release of Annual Index 2016, ANREV has recalculated the Q4 2016 Quarterly Index. Members can move to ANREV Analysis Tool to check out the updated result.

To participate in the ANREV Index, please contact Henry Lam at [email protected] to take part in this industry-led initiative or if you have any questions about the ANREV Index.

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In this issue, we have included: 

ANREV would like to thank the Regulatory and Tax committee who compiled the newsletter.

For further details on the committee, please click here.

With the popularity of the Asia Pacific non-listed real estate market continuing to increase, it is timely to assess how much capital is entering the market and what this figure represents on a global basis.

The Capital Raising Survey was first launched in 2014. This survey gives an insight into capital raising activities within the non-listed real estate industry by region, product type and investment strategy. The non-listed real estate products include separate accounts, joint ventures, club deals, funds of funds and non-listed real estate debt products. The report offers detailed insights into global and regional capital raising figures.

The 2017 survey attracted a record number of participants with 162 fund managers globally completing the questionnaire, a 6% increase compared to 2016 when 153 fund managers responded to the survey. 80.2% of those surveyed raised a combined US$128.4 billion for non-listed real estate throughout 2016.  The Asia Pacific region attracted US$22.9 billion of equity, the only region to see an increase of capital raised in comparison to 2015. 

Garden Square is the oasis in the Jing’an district, Shanghai. Completed in 2013, with a 10,000 sqm garden full of greenery and paths that allows busy people to feel at ease, Garden Square aims to be one of the most environmental friendly and unique commercial buildings in Shanghai.

In 2016, it has undergone further improvements and achieved LEED platinum certification. It has achieved the highest score within the LEED scale for office in China and thereby it has set the new standard for office buildings in China.