ANREV, INREV and NCREIF are pleased to present a series of quarterly snapshots on what’s happening in the global real estate investment market.

In this short two-page snapshot, the Global Research Committee will share their views and paint a picture of the global landscape drawing on data and insights from recent global indices and global surveys, conducted by all three associations.

Key highlights July 2023 include:

Rising risk free rates heightened risk aversion in real estate markets, valuation and price discovery uncertainty persists

Office and retail sectors are seeing weakness, albeit resilient larger economies are giving support to industrial sector

As of Q1 2023, the Global ODCE index total return marked the third consecutive quarter of negative performance

The sixteenth gross return report shows a 3-month total gross return of -2.20% for the period between April and June 2023.
 
The gross return report is a supplementary report to the ANREV Australia Core Open End Fund Monthly Index (ACOE) published one month after every quarter showing aggregated gross returns of the 17 ACOE funds.

Please contact Daisy Huang or Donald Lam if you have any questions regarding the Index.

• Funds of funds’ global AUM rose to over US$ 85.8 billion at the end of 2022
• They invested US$ 5.5 billion into the global real estate market in 2022 and delivered a positive performance of 2.93%
• Value add allocations increased to a record 10% but focus on core remains
• Acceleration of granular diversification strategy through the choice of vehicle, sector and geography

The performance data presented in this report is not intended to serve as a benchmark and should be used for research and information purposes only.

The ANREV Australia Core Open End Fund Monthly Index (ACOE) saw a total return of 0.23% in July 2023. The ACOE includes 17 funds with a total GAV of AUD 122.65 billion.

The ACOE Index also reports data on geographic allocation by sector.

Please contact Daisy Huang, or Donald Lam if you have any questions regarding the Index.

ANREV, INREV and NCREIF are excited to launch the first Global Open End Diversified Core Equity Funds Index. The consultation release measures the net asset value quarterly performance, net of fees and other costs, with a near-term plan to report gross of fees performance.

Key highlights include: 

• The Q1 2023 total return was -1.9% with negative performance across all the three global regions. Asia Pacific delivered the strongest performance at -0.43%, followed by Europe on -1.89% and the US with a total return of -3.38%. 
• On a five-year annualised basis, the Global ODCE Index shows an aggregated total return of 4.89%. 
• The US outperformed the other two regions with a total return of 6.56%. Asia Pacific posted 4.89%, while Europe delivered 3.26%.

 Please contact Amélie Delaunay or Daisy Huang if you have any questions regarding the Index.

ANREV has launched the fourteenth release of the ANREV ODCE Asset Level Performance Consultation Report.

The ANREV Asset Level Performance Report is not an index as the coverage is limited to assets held by 8 funds with a pan Asia core open end strategy.

The ANREV Asset Level Performance Report results are based on asset level data that is provided to ANREV directly from managers. Data collection starts immediately after a quarter has ended for a period of up to 6 weeks after quarter end.

Please provide feedback and comments to Amélie Delaunay or Daisy Huang.

In July's issue, we have included:

Australia

• Changes to Australia’s interest limitation (thin capitalization rules)
• Update on ASIC’s recent greenwashing actions
• Managed Investment Trusts (MITs) – green buildings and build-to-rent
• Victorian budget 2023

British Virgin Islands

• Annual deadlines for BVI voluntary liquidation registration

Cayman Islands

• What investment managers need to know about FATCA and CRS reporting
• What private equity managers need to know to file a Cayman Islands fund annual return
• Cayman Islands Monetary Authority regulatory measures for regulated entities

China

• China Issues New Regulations on Medium and Long-term Foreign Debt
• AMAC Released The Guidelines for The Pilot Filing Of Private Real Estate Investment Funds

Hong Kong

• Consultation on Enhancing Tax Certainty of Onshore Gains on Disposal of Equity Interest
• The latest updates on developing family offices in Hong Kong
• A modified approach to issuance of Certificate of Resident Status in the Hong Kong SAR

Korea

• Korea strengthens document submission requirements for application of tax treaty exemption by foreign corporations

Singapore

• Guidelines on licensing, registration and conduct of business for fund management companies
• Changes to Singapore's family office tax regime (sections 13O & 13U)
• Public consultation on Proposed Income Tax (amendment) bill 2023

Lastly, we would like to thank our committee who helped putting together the newsletter. Details about this committee can be found here.

The fourteenth consultation release of the Global IRR Index includes 346 funds with non-core strategies, comprising of 305 value added and 41 opportunity funds.

Key highlights:

• This Global IRR Index release features 71 Asia Pacific, 122 European and 153 US funds
• The IRR of funds with a first closing in 2020 has decreased by more than six percentage points
• A clear majority of funds follow a single country strategy
• At 18.7%, the performance of the USA’s 2008-2010 fund vintage is the strongest by far

ANREV has launched the Q1 2023 IRR Index by vintage. The IRR Index measures performance of value added and opportunistic non-listed closed end funds investing in Asia Pacific.

The Q1 2023 sample of the ANREV IRR index includes 71 funds.

We welcome any questions or comments - please email Daisy Huang or Justin Wong.