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. 

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 Q4 2016.

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 Q4 2016 update release includes the performance of 479 funds compared to 489 funds as of Q3 2016. The GREFI includes funds in Asia Pacific (86), Europe (277), US (98) as well as funds with a global strategy (18). GREFI funds represent US$616.7 billion of total gross asset value with 49% in US funds, 32% in Europe, 15% in Asia Pacific and the remainder in global funds.

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

Sustained performance for all funds in Q4 2016

• The ANREV All Funds index returned 2.48%
• Core funds returned 3.08%
• Value add funds returned 3.96%

Data contributions were received from 86 funds with a total gross asset value of US$96.5 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 May.

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.

EXECUTIVE SUMMARY

• A panel data regression analysis was undertaken on a unique, unbalanced panel of APAC non-listed real estate funds to determine the role of leverage in hedging against actual and unexpected inflation with a focus on core funds.

• There is evidence that APAC non-listed real estate funds provide hedging against inflation and that the use of debt enhances their hedging capabilities.

• Furthermore, the results show that while leverage enhances a fund’s inflation hedging capability at moderate levels, its benefits are not unrestricted.

• The results imply that investors can extract information about inflation hedging abilities of non-listed real estate funds from capital structure data, promoting efficient investment decisions.

• The significance of the results may be influenced by the size of the dataset (119 APAC non-listed real estate funds invested in more than 10 countries across the three styles over the period of 2006-2014).

This webinar session was successfully held on 18 January 2017.

For members who have missed the webinar and interested to view the recordings, please download from below.

NB: The video is connected via YouTube. 

Summary

The ANREV Index is a suite of indices which measures the performance of Asia Pacific non-listed property funds. The indices are composed to reflect the post-tax financial performance of the Asia Pacific non-listed property funds market, taking into account fees and leverage. Core, value-added and opportunity funds are included in the suite of indices produced, along with country, structure and sector specific indices.

Global Real Estate Fund Index (GREFI) is a joint effort among ANREV, INREV in Europe and NCREIF in the United States. The aims of the GREFI are to improve transparency of real estate as an asset class and to help the index users make better informed investment decisions. It is of paramount importance to the real estate industry that NCRIEF, INREV and ANREV collaborate to produce robust global and intra region comparisons.

The webinar provided updates of the ANREV Quarterly Index and GREFI as of Q3 2016.

In June 2013 Cromwell Property Group acquired a portfolio of 6 assets from the New South Wales Government (GPNSW) with a lease back provision, including a Green Lease that required the parties to work towards achieving a number of prescribed sustainability objectives.

The objective of this case study is to identify the process that Cromwell followed in partnership with stakeholders to develop and implement the EMPs under the GPNSW Green Lease.