Investors and fund of funds managers say they are particularly concerned about potential debt problems for non-listed real estate funds launched in 2006 and 2007, according to a study carried out by the European Association for Investors in Non-listed Real Estate Vehicles (Inrev).

Investors and fund of funds managers say they are particularly concerned about potential debt problems for non-listed real estate funds launched in 2006 and 2007, according to a study carried out by the European Association for Investors in Non-listed Real Estate Vehicles (Inrev).

Details on the Debt Study were outlined at Inrev's annual conference in Athens. The study show that 36% of investors saw 2006 as the most difficult vintage while 35% of fund of funds managers selected 2007.

'If you combine the debt study results with those of the capital raising survey for 2009, you can see that investors have identified that the vintages of funds that are likely to cause most concern are from 2006 and 2007 when peak levels of capital flowed to non-listed real estate vehicles and when the propensity to use debt was high,' said Russell Chaplin, co-chair of the Inrev Research Committee and Global Strategist for UBS Asset Management.

'One of the main issues surrounding capital calls, such as those for additional commitments, is the high level of reporting requirements from investors for this sort of request. Investors want to ensure they have a good understanding of what the money will be used for and in these market conditions such a decision cannot be made lightly,' said Lisette van Doorn, Chief Executive of Inrev.