Growing appetite for listed property exposure since the onset of the global financial crisis has led to a surge in real estate securities funds.
Growing appetite for listed property exposure since the onset of the global financial crisis has led to a surge in real estate securities funds.
This is because a property allocation gained through the listed sector plus the attractive income returns appeal to a broader range of investors, according to the European Public Real Estate Association (EPRA).
Assets under management of real estate securities funds grew 68% to $250 bn (€192 bn) from 2007 to 2012, according to research by consultancy company Consilia Capital and Property Funds Research for EPRA.The findings show that the number of real estate securities funds increased 39% to 677 over the same period.
Latest figures for Exchange Traded Funds (ETFs) show that total assets under management for ETFs pegged to FTSE EPRA/NAREIT real estate indices jumped 85% to $8.7 bn (€6.7 bn) in the 12 months through to February this year.
Philip Charls, CEO of EPRA, said: 'Above-average dividend yields and secure long-term cashflows generated by listed real estate companies have an immediate appeal to yield-hungry investors. The liquidity, efficient pricing and transparency offered by the listed property sector mean it is also attracting a broader range of investors from defined contribution pension plans to long/short hedge funds.'
