Overview

A survey, by Nabarro’s Indirect Investment team, of the latest trends in real estate funds and the current market sentiment of fund managers and investors.

£3.2bn of new money was invested in pooled property funds in the fourth quarter of 2009, the highest on record since 1998. This amount far exceeded the peak of £1.7bn achieved during the previous upturn in 2006. However, the bulk of this new money is from the retail sector. The flow of institutional money is much reduced, and fund managers are having to be responsive to attract new institutional capital.

Today investors are wiser, having experienced the operation of real estate funds during unstable market conditions. Institutional investors are more selective about where they commit funds and seek: robust alignment of fund managers’ and investors’ interests;
comprehensive corporate governance; and increased fund manager accountability and transparency.

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