The Asia-Pacific Real Estate Association (APREA) and Preqin have joined forces to launch an index of closed-ended real estate funds.
APREA already hosts an index of listed real estate investment trusts with GPR, but the new APREA-Preqin Quarterly Monitor will be the first time it has sought to benchmark private real estate fund performance.
The monthly index will cover 198 closed-ended funds with close to US$127bn (€114bn) in assets under management across seven primary strategies.
“Although private real estate investment in Asia-Pacific has grown exponentially in recent years, the market has historically been underserved with accurate data on the performance of the sector,” APREA and Preqin said in a joint announcement.
Sigrid Zialcita, CEO of APREA, said the index “fills a crucial information gap in the region’s real estate unlisted markets”.
Jie Sin Chia, head of Asia products at Preqin, said it was “crucial” for investors and fund managers to “have access to timely, complete and accurate information on how the market is performing, and where their vehicles sit within that”.
According to APREA and Preqin, it will give investors and fund managers an “unparalleled ability” to benchmark funds and portfolios against other Asia-Pacific-focused funds, track the performance of the sector on a quarterly basis, compared median net internal rates of return (IRRs) and net multiples across vintage years, and see league tables of top performing funds in teh region.
ANREV, another Asia-Pacific real estate association, already runs an index covering 94 funds with US$125bn of assets, as at the first quarter of this year.
It also runs sub-indices and an IRR index covering 68 value-add and opportunistic closed-ended funds.