INREV looks beyond vanilla funds for wider property role

Clubs, joint ventures and separate accounts are part of body’s new remit

INREV is widening its scope to include additional forms of non-listed investment, in the face of the fall in new property fund launches.

Adler: “The line between club deals and funds
is blurring,” INREV’s new board member said

At its annual conference last week, chief executive Matthias Thomas said the investors and fund managers’ association has changed its articles of association and mission statement to reflect an “evolving strategy which will now include a specific focus on additional forms of non-listed investment, such as debt funds, joint ventures, club deals and separate accounts”.

With an eye to bringing in people with experience of these additional structures, INREV has recruited three new management board members: Eric Adler, global chief investment officer at Pramerica Real Estate Investors; Wenzel Hoberg, European head of real estate investments at the Canada Pension Plan Investment Board; and Allan Mikkelsen, a partner at ATP.

At the conference in Barcelona, Adler said: “The line between club deals and funds is blurring.”

Hoberg: will bring knowledge of club deals and joint ventures to the INREV board
Hoberg: will bring knowledge of club deals and joint ventures to the INREV board

Hoberg pointed out that all co-investment structures have some similar issues, such as deciding on fees, compensation and termination rights.

“A lot of investors use the whole spectrum: separate accounts, joint ventures, clubs and funds,” he said.

Adler’s Pramerica REI colleagues are active in the debt market, while CPPIB’s Hoberg focuses on joint ventures and club deals, and on including more alternative investment products in the portfolio.

At last year’s conference, Jeff Jacobson, chief executive of LaSalle Investment Management, made a keynote speech called ‘Are we open for business? The future of our industry.’

He questioned how INREV should evolve to stay relevant in the face of changes including investor dissatisfaction with non-listed vehicles and asked whether it was due to invest- ment styles, or whether it was a function of their structures and governance.