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Ray Adderley

INREV Investment Intentions Survey 2014 - Key Highlights

Ray Adderley, Head of Investment Management, provides an insight into the key findings of the 2014 annual INREV Investor Intentions Survey.

The results of the annual INREV Investor Intentions Survey were published last week. With the Survey having been conducted by INREV since 2007, the focus this year has been expanded to include the perspective of investors from North America and Asia as well as Europe. This has resulted in a very credible response rate with 142 Investor and 15 Fund of Fund respondents together with 167 Fund Managers.

Key highlights

  • The Survey results point to increased investor confidence in the non-listed real estate sector.
  • Average real estate allocations are projected to rise from 9.5% to 10.3%, indicating that investors seek to invest €35bn in 2014.
  • Just under half of investors are expected to increase their exposure, led by those from Asia-Pacific.
  • The net balance for increased non-listed real estate fund investment has risen over the year, underpinned by a marked decrease in investors seeking to lower their allocations compared to the previous year.
  • Preference for non-listed real estate funds remains stronger with smaller investors, with larger investors preferring JVs and Clubs.
  • Real estate debt remains popular with a quarter of investors expect to increase their allocations to this area, particularly amongst the larger investors.
  • Core funds remain the most popular, with larger investors having greater interest in value added
  • A preference is expressed for larger (>€500m GAV) funds by investors…
  • …whilst the view was expressed at the UK Winter Seminar held in London that there remains the need for a good range of large ‘beta’ & niche ‘alpha’ funds across markets from which to select.
  • Germany, UK and France remain the core Western European markets for many international investors, with increased focus on Spain.
  • UK offices remains the top-pick country-sector destination.
    Retail and offices remain the top sector preferences followed by residential and industrial/logistics.

Ray Adderley

Ray Adderley

Global Head of Performance & Investment Process

Ray's biography