GRESB gains ground as key global benchmark

The Global Real Estate Sustainability Benchmark (GRESB) is gaining ground as the key global benchmark for the real estate industry, according to a number of industry leaders. GRESB, an initiative of pension fund administrators including APG, PPGM and USS, is due to release its third annual sustainability survey in September.

Thanks to increased support from institutional investors, Europe saw the total number of respondents in the survey rise 50% to 194 last year. While the response from listed companies stabilised in 2011, the coverage of private European funds exploded by more than 150% to 162 from only 64 in 2009. The number of private European participants is set to increase further this year now that INREV, the association for the non-listed real estate sector, has thrown its weight behind GRESB, according to GRESB’s programme manager Arjan Keijzer. 'Large investors such as Cohen & Steers, UBS Global Real Estate, Grosvenor and RREEF have recently joined GRESB, and significant inroads have been made among leading Scandinavian players.'

Based in the Netherlands, GRESB is being embraced by US and Asian investors as well as European players, Dale Taysom, chief operating officer at Pramerica (Prudential Real Estate Investors), pointed out. ‘We took part in 2011 for the 2nd year and two of our funds in Asia and Latin America performed very well. PREA, the American fund management organization, has not made it compulsory to join GRESB, but they strongly recommend that investment managers become participants.’

Pramerica plans to increase its participation with additional funds, Taysom said. 'I think that through pressure from customers, we will see the database grow further alongside Greenprint which now has ULI behind it.'