Five European property associations and 11 national ones have backed Inrev's key principles for future EU-UK relations that call on policymakers to maintain market access and avoid any new barriers to cross-border real estate investment post Brexit.
The associations released their statement, making the case for minimising the disruption of the UK decision to leave the EU, at the annual conference of the European Association for Investors in Non-Listed Real Estate Vehicles (INREV) in Berlin on Tuesday.
The guiding principles centre on avoiding new barriers and maintaining market acccess in terms of investment, lending, fund raising, management and hiring and retaining personnel. (see more below)
The signatories noted that the commercial commercial real estate (CRE) sector contributed €329 bn to the European economy in 2015, representing about 2.5% of the total economy, nearly equal the size of the European automotive manufacturing industry and telecommunications sectors combined. The CRE sector also employs 3.7 million people, not only more than the auto manufacturing industry and the telecommunications sectors combined, but also greater than banking.
'Beyond these figures, the CRE sector plays a vital role in every aspect of the European economy, society and environment,' they said in the statement.
The backers of the principles are the pan-European organisations, Inrev, Epra (listed property), RICS (chartered surveyors), CREFC Europe (finance), ICSC (retail) and the national bodies, Aref (UK), Aspim (France), Assoc Immobiliare (Italy), BPF (UK), BSI, Fastighetsägarna (Sweden), IPF (UK); IVBN (Netherlands); LuxReal (Luxembourg), Rakli (Finland) and ZIA (Germany).
Organisations like ULI and iPF did not take part as they are not allowed to lobby on behalf of their members.
The statement drawn up by the 16 European real estate organisations states: 'The specific conditions of the UK’s departure from the EU, the nature of the future relationship that is put in place and the timing and process for these negotiations are of profound importance to the European real estate investment industry. We are committed to ensuring that the hundreds of billions of euros that institutional investors from around the globe have invested into the European economy through real estate are not put at risk and, moreover, that the sector can continue to support the economy.'
Key Principles for real estate investment as outlined in the statement
• Avoiding new barriers: Europe's real estate sector, as well as those investing in it through equity or debt, seek a future relationship between the UK and the EU that preserves the flow of skills, capital and investment between the two. We appreciate that political and other factors will play a role, but it is critically important that as few new barriers as possible are created as a result of the UK’s exit from the EU.
• Maintaining market access: A legal framework that both provides access to EU markets for long-term investors, fund managers and lenders in the UK and that allows those based in an EU member state the same access to the UK market will be better for everyone. This framework should cover:
- the investment activities of long-term investors such as pension funds and insurers;
- the supply of credit by banks and non-bank lenders;
- the marketing activities of fund managers as they raise funds;
- their managing activities, including investing and realising investments in real estate; and
- recruitment and retention of professionals and other workers by all parts of the industry
