Some 59% of pension funds in Norway, Sweden and Denmark plan to increase their holdings in non-listed real estate over the next five years, according to a survey put together by Lymos BV Real Estate Capital Advisors. The average planned increase in investment allocations to the sector was 12%. At the same time, most funds surveyed described their involvement with non-listed real estate holdings as a very active one.
Some 59% of pension funds in Norway, Sweden and Denmark plan to increase their holdings in non-listed real estate over the next five years, according to a survey put together by Lymos BV Real Estate Capital Advisors. The average planned increase in investment allocations to the sector was 12%. At the same time, most funds surveyed described their involvement with non-listed real estate holdings as a very active one.
According to the survey, in which 46 Scandinavian pension funds with assets under management of at least EUR 500 mln were interviewed, individual market policies appeared to play a greater part in funds’ decision-making than day-to-day rational analysis. Indeed, most funds said they did not consider ending closed-end non-listed real estate investments before the termination date, largely due to internal political reasons.
'There is now much greater interest in non-listed real estate assets,' report author Mariette Meulman said. 'The requirements of pension funds in this area call for further analysis, particularly as there is so little information available.'
