With defined contribution (DC) gradually taking over from defined benefits (DB) as the pension scheme of choice, the European listed property sector has an excellent opportunity to deliver its potential, writes Gareth Lewis, director of finance at EPRA.
With defined contribution (DC) gradually taking over from defined benefits (DB) as the pension scheme of choice, the European listed property sector has an excellent opportunity to deliver its potential, writes Gareth Lewis, director of finance at EPRA.
On the other hand, it could equally be a huge missed opportunity for the sector and more importantly, the ability for a renewed European pension fund framework to efficiently meet the needs of Europe’s ageing population.
On an optimistic note, Lewis believes we can expect DC pension schemes with strategies including default investment options for major asset classes to be a significant growth area in Europe. 'Listed property companies (including REITs) could be in a fantastic position to attract capital as a result of these default investment allocations for passive investors - provided that real estate is rightly viewed as a separate asset class.'
The column appears in the April edition of PropertyEU magazine. Click on the link below to subscribe.
