In a survey put together by Lymos BV Real Estate Capital Advisors, 59 per cent said they would increase their investments in the asset class. The average increase in allocations was 12 per cent.

Furthermore, most Scandinavian funds described their involvement with non-listed real estate holdings as very active. However, 73.9 per cent of respondents said they did not execute a financial hold/sell analysis and 18.2 per cent do not execute a strategic hold/sell analysis.

Individual market policies also appeared to play a larger part in funds’ decision-making than day-to-day rational analysis. Most funds said they did not consider ending their closed-end non-listed real estate investments before the termination date, largely due to internal policy reasons.

Marriette Meulman, author of the report, said: “There is now much greater interest in non-listed real estate assets. The requirements of pension funds in this area call for further analysis, particularly as there is so little information available.”

The survey interviewed 46 Scandinavian pensions each with assets under management of at least €500m.

SA

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