Download Quick guide to presentation template

WHAT DO THE INVESTORS NEED?
Institutional Investors
Non-listed real estate
29 June 2017
Maurits Cammeraat
Director of Professional Standards
Next 30 minutes…
•
•
•
Who the investors are
What investors need to know in order to spend
Investment intentions in Central Europe
2
3
Example: Dutch pension funds
Invested capital
Real Estate
• Indirect Real Estate - Non Listed
• Indirect Real Estate – Listed
• Direct Real Estate
Rest including stocks and bonds
Total
Source: DNB, 2017
4
Billion €
116
• 49
• 54
• 13
1,168
1,284
9%
All investor types increase allocation to real estate
Allocation to real estate
16%
% of overall portfolio
14%
1.6%
12%
10%
1.5%
1.4%
8%
13.0%
6%
4%
10.0%
2.6%
9.1%
2%
3.6%
0%
Pension funds
Insurance companies
Current allocations
Note: Equally weighted allocations; excludes investors with 100% real estate
allocations
Other investors
Increase to target
7
All investors
Enthusiasm for real estate remains undimmed
Diversification benefits
Real estate continues to
Real estate allocations
continue to attract
draw in capital
have been increasing
8
Allocations set to rise across the board
Allocation to real estate
20%
7.9%
16.3%
5%
12.9%
11.7%
6.1%
2.8%
0.4%
11.3%
10.6%
10.3%
0.7%
8.9%
0.9%
2.1%
6.3%
7.4%
6.8%
5.2%
4.0%
Japan (6)
10%
0.9%
Denmark (3)
0.6%
Germany (5)
15%
0.3%
The Netherlands (9)
% of overall portfolio
25%
Korea, Republic Of (3)
Australia (10)
Switzerland (3)
United States (36)
Canada (6)
United Kingdom (4)
Finland (7)
0%
Investor domicile
Current allocation
Note: Equally weighted allocations; excludes investors with 100% real estate
allocations
Increase to target
9
WHAT INVESTORS NEED TO KNOW IN ORDER TO SPEND
10
Key requirements are captured in INREV Guidelines
INREV Guidelines
Real estate, investment vehicle and manager
What are the assets / portfolio?
How is the investment structured?
Who is the manager?
12
Sustainability is important for most investors
INREV Survey: How important are the ESG risk and performance aspects to you?
100%
32%
75%
50%
50%
0%
Environmental
very important
moderately important
36%
50%
25%
55%
neutral
36%
23%
9%
9%
Social
Governance
13
less important
not important
There are clear preferences
Regulated
Non-regulated
Closed end
Open end
Discretionary
Non-discretionary
Similar by co type
Dissimilar by co type
Similar by domicile
Dissimilar by domicile
Small investor pool
Large investor pool
Blind pool
Seeded pool
GAV up to €500 million
GAV above €500 million
Single sector
Multi sector
Single country
Multi country
0%
20%
40%
60%
14
80%
100%
Value added has the most attractive prospects
Investment style preferences
100%
90%
2.9
35.3
80%
% of respondents
3.0
9.4
14.9
37.0
28.6
30.3
7.1
42.9
13.8
10.5
41.1
46.8
48.7
41.1
39.4
40.8
2015
2016
2017
41.7
43.6
50%
17.8
21.9
70%
60%
7.1
25.9
40%
58.8
68.6
30%
20%
68.8
66.7
50.0
41.5
51.2
37.0
10%
5.9
0%
2007
2008
2009
2010
Core
2011
2012
Value added
2013
2014
Opportunity
This shift comes at the expense of opportunity
15
INVESTMENT INTENTIONS IN CENTRAL EUROPE
?
16
184 fund managers
119 investors
11 fund of funds managers
314 Respondents
Assets under management
2,100,000,000,000
18
19
CE is in top-10 as seen by investors
Turkey
Other Europe
Baltics
Switzerland
Eastern Europe
Portugal
Ireland
Luxembourg
Austria
Norway
Denmark
Sweden
Belgium
Italy
Central Europe
Finland
Spain
Netherlands
Germany
United Kingdom
France
% of investor respondents
How does CEE rank for investors?
Preferred investment locations
80%
70%
60%
50%
40%
30%
20%
10%
0%
20
CE is between Finland and Denmark as seen by all respondents
Turkey
Other Europe
Baltics
Switzerland
Eastern Europe
Portugal
Ireland
Austria
Luxembourg
Norway
Denmark
Central Europe
Finland
Sweden
Belgium
Italy
Spain
Netherlands
France
United Kingdom
Germany
% of all respondents
Similar ranking applies for all respondents
Preferred investment locations
80%
70%
60%
50%
40%
30%
20%
10%
0%
Investors are confident about the region
3.5%
7.0%
Fund managers
Fund of funds managers
24.6%
38.6%
57.9%
Asia Pacific investors
European investors
North American investors
7.0%
Note: 57 respondents indicated their preference for Central Europe; of those:
22 investors, 33 fund managers; 2 funds of funds managers
21
Anglo-Saxons are ahead of the queue
Investors
that indicated their preference
for Central Europe by domicile
Fund managers
that indicated their preference
for Central Europe by domicile
18.2%
30.3%
39.4%
50.0%
18.2%
9.1%
13.6%
United States
Finland
Netherlands
21.2%
Other
United Kingdom
22
Germany
Netherlands
Other
Industrial / logistics stands out from the crowd
1. Ind. / Logistics (77.3%)
2. Retail (59.1%)
4. Residential (27.3%)
Note: investor preferences
3. Office (54.5%)
5. Student acc. (13.6%)
23
Thank you
24
Central Europe - Includes Czech Republic, Poland, Hungary, Slovakia, Slovenia
Eastern Europe - Includes Romania, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Kosovo, Macedonia, Albania,
Bulgaria, Russia, Ukraine
25