Allocations to non-listed property funds fall further

The percentage of investors expecting to increase their allocations to non-listed real estate funds fell further this year for the second year in a row.

At the same time, the percentage of investors expecting to decrease their allocations has risen.
This is one of the key conclusions of the latest Investment Intentions survey published by the
Association of Non-Listed Real Estate Investors INREV.

One of the key obstacles of investors see is insufficient alignment of interest with
fund managers.

Meanwhile joint ventures and club deals remain in vogue, the survey found. Large investors will continue to invest in real estate through joint ventures and club deals, with 47% expecting to increase their allocations to these categories.

These structures are perceived to offer investors more control than pooled funds.

In 2013, 45.5% of investors say they will make an investment in non-listed funds. Dutch investors lead the charge, with 75% of them expected to allocate new capital to the non-listed sector this year.