EUROPE - The European Association for Investors in Non-Listed Real Estate Vehicles (INREV) has launched a directory of 36 unlisted funds of property funds to meet demand from smaller pension funds and niche-hungry major funds.

 "The demand is coming from smaller pension funds - but not only them," INREV research director Andrea Carpenter told IPE Real Estate. "The directory is also aimed at investors going outside their domestic market for the first time and at larger investors wanting to capture exposure through niche vehicles."

Recent proliferation of property funds has stretched investor decision-making, especially among pension schemes with limited in-house resources.

But a maturing market will see more specialist funds emerge, claimed Carpenter.

"It will have to be more about distribution strategy, and funds will have to specialise by location, style and sector," she said.

Funds-of-funds featured in the directory have combined target equity of €10.9bn. Around 68% or €7.4bn is allocated to Europe; €1.8bn (17%), Asia; and €0.4bn (4%), the US. However, Carpenter pointed to differences in geographic focus among regional investors. 

"With European funds, it's mostly European investors. With US funds, it's mostly US investors. But with fast-growing Asian funds, the picture's different, with European investors using them to gain access to the region," she said.

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