INREV has published its updated 2004 performance index for non-listed European property funds building on the original INREV index which was launched in April this year.
INREV and IPD have surveyed an additional 13 property funds for the index bringing the total to 100 funds from seven European countries. This represents a total Net Asset Value ("NAV") of 77 billion.
The index constitutes a major strategic step both for INREV and the non-listed real estate industry and marks the increasing importance and size of this growing sector of the European real estate market. The index will remain unfrozen for the foreseeable future, which will allow additional vehicles to be added.
Highlights of the 2004 Index include:
- Total return in 2004 for all vehicles was 9.1%.
- The UK accounts for the largest number of surveyed funds, with 40 respondents, including 37 funds in the HSBC/APUT index; the total NAV of UK funds surveyed was 22 billion. The Netherlands had the second largest total, with 15 funds and total NAV of 7 billion.
- The majority of funds surveyed (87) are currently focused on one country.
- Sector diversified funds account for 62 billion of the total NAV, whereas funds focused on a single sector account for 12 billion of total NAV.
Commenting on the updated Index, Andrew Smith of Arlington Securities and Chairman of the Index Steering Group, said:
"The INREV Index provides for the first time an international indicator of the performance delivered to investors in non-listed vehicles. In doing so, it plugs a gap not filled by existing measures of the underlying property market."
"Through the new index, INREV has given an important boost to the transparency of the non-listed property sector. The updated sample of 100 vehicles is an excellent platform on which to build, and this will undoubtedly grow as the index establishes itself as the standard by which this segment of the European real estate market is measured."
Lisette van Doorn, Chief Executive of INREV, commented:
"We are very pleased by the rapid growth of the number of funds included within the index and the encouraging feedback on it from both investors and fund managers."
"The index is a significant element of INREV's work to establish performance transparency especially when viewed in conjunction with the additional work we are undertaking on transparency and liquidity. Going forward, we will focus on improving the quality and coverage of the index, to make it truly representative of the European non-listed market."