Non-listed funds remain the favoured route for increasing property exposure according to research by INREV, the European association for investors in non-listed real estate vehicles.
In its third annual investment intentions survey the association found that Germany was 2006’s most favoured location for investment in non-listed funds with interest in central and Eastern Europe diminishing.
The survey reported the Nordic markets receiving increased interest especially from fund of funds managers.
Investors consider offices the best performing sector, while fund managers rank retail first and fund of fund managers consider industrial properties best placed for performance.
Fund of fund managers are expected to be the most active global players over the next two years, citing their attracting to the non-listed fund market based on the possibility of gaining enhanced returns.
Expert management and international diversification benefits were found to be the motivation for other investors and fund managers, with fund style the decisive criteria for investment.
This year’s survey covers 45 investors, 56 fund managers and 22 fund of fund managers.
References: EGi News 15/01/07
