INREV, the European Association for Investors in Non-listed Real Estate Vehicles, yesterday published its Consultation Release as a precursor to the launch of the 2004 INREV performance index at INREVâs inaugural conference in Budapest on 21 April 2005.
The launch of an index measuring the performance of non-listed real estate vehicles from across Europe is a major strategic step for INREV and the indirect investment industry. As well as performance figures per geographic territory, the INREV index will report upon the annual performance of property sectors throughout Europe, including sub-indices for diversified funds as well as for sector specialist vehicles focusing on the office, retail, industrial/logistics and residential markets. INREVâs intention is to increase the reporting frequency of the currently annual index to quarterly reporting over time.
Phillip Rose, the Co-Chairman of INREVâs Benchmarking and Performance Measurement Committee, commented: âThe launch of the INREV Index, which provides performance transparency for â¬68 billion of real estate vehicles across Europe, is a major evolutionary step for the industry. The Consultation Release for the Index shows that institutional investors have earned an average return of 10.2% per annum from 2001 to 2003 and the forthcoming 2004 figures are expected to further confirm the attraction of non-listed real estate vehicles to investors.â
Judy Hill, INREVâs Chief Executive, added: âIt has been clear from the outset that the indices will need to be flexible to suit the investorsâ and fund managersâ increasingly sophisticated requirements. For this reason, we have ensured that the indices can be âsliced and dicedâ in many ways in order to provide meaningful benchmarks. The key next step thereafter will be to work torwards reporting the INREV Index on a quarterly basis from 2006 onwards. But this obviously depends on the managersâ ability to deliver the necessary information in a timely fashion.â
INREVâs Consultation Release reports historical net asset value based performance figures for the period from 2001-2003, and covers 75 non-listed real estate vehicles â" roughly 50 per cent of the comparable investment universe, as measured by value. The Consultation Release reports on single country vehicles investing in the United Kingdom, the Netherlands, Switzerland, Italy and Germany, and on European cross border vehicles. The Consultation Release is supported by an INREV Index Manual, which gives a detailed description on how the index is constructed.