The Association of Real Estate Funds (AREF) has launched a new initiative aimed at enhancing transparency and corporate governance in the real estate investment sector.
The new charter replaces AREF’s code of practice, first introduced in 1997, which required annual self-certification to a series of detailed declarations.
AREF said the charter establishes 10 guiding principles focusing on key areas such as investment integrity, resilience, sustainability and stakeholder engagement.
The principles are intended to ensure that real estate fund managers act in the best interests of investors while fostering accountability and adaptability in a rapidly evolving investment landscape.
The charter’s 10 principles are designed to guide fund managers in maintaining high standards while adapting to market developments. These principles include:
- Stakeholder focus: placing investors at the centre of decision-making.
- Transparency: ensuring open communication, clear reporting and timely access to information.
- Sustainability: promoting sustainable investing, including a commitment to achieving net zero by 2050.
- Resilience: building the capacity to withstand financial, economic and environmental shocks.
The charter also encourages innovation, collaboration and diversity, equity and inclusion within the real estate investment sector.
Paul Richards, CEO of AREF, said: “The charter tells real estate investors whether their fund adheres to the highest possible standards of transparency and corporate governance.
“We worked closely with the industry and its stakeholders to design something strong and flexible for a changing world – and a changing sector, as new investment opportunities and new types of funds emerge. We expect funds and their investors to welcome it.”
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