INREV launches EUR 519b global index with partners

INREV, the European associations for investors in non-listed real estate, its Asian sister organisation ANREV and the National Council for Real Estate Fiduciaries (NCREIF) in the US have agreed to co-operate on the creation of a new global fund index which will measure real estate investment performance of non-listed real estate vehicles on a global basis for the first time.

The combined global index will have a potential of around 670 funds with a total estimated Gross Asset Value of EUR 519 bn. The new index will not only reflect a 'substantial' investment universe, it will also allow the non-listed real estate sector to be analysed and compared against other asset classes globally, INREV said in a press statement.

Patrick Kanters, chairman, INREV and managing director Global Real Estate at APG Asset Management, called the new index 'a great initiative'. 'A global index will have far-reaching benefits for the whole industry - particularly in terms of establishing universal performance benchmarks and standardisation, which is a major focus for INREV. It will also help with specific issues such as improving asset liability modelling.'

NCREIF and INREV already have well-established regional fund indices in place while ANREV launched an inaugural Asian fund index in 2011.

NCREIF's CEO Peter Steil said the initiative represents the logical integration of the three member-driven organisations to meet the data collection and information needs of their expanding global activities. 'It will also serve as the basis for further collaboration in the future,' he added.

A Global Index Working Group has been formed with representatives from all three bodies to guide the process, with the aim of presenting initial index results at the ANREV Annual Conference in Hong Kong in October, and the NCREIF Fall Conference in Florida in November.