Real estate portfolio strategy and product innovation in Europe

Abstract

Property as an asset class is in a period of transition. The establishment of indices throughout Europe adds transparency and expectations of increasing sophistication. Also, changes in the legal framework create new ways to gain exposure to real estate. We first discuss the various equity real estate investment vehicles, highlighting the pros and cons of each type of vehicle for an institutional investor. We then turn to analyzing the impact that these changes are likely to have on real estate markets. Last but not least, we discuss the impact these changes have on the ability to manage the equity real estate exposure of a portfolio.

An Analytic Hierarchy Process (AHP) framework for property valuation to identify the ideal 2050 portfolio mixes in EU-27 countries with shrinking populations

“…Real estate portfolio management is additionally of vital interest in literature. Researchers in this field mainly focus on REIT real estate investment trusts (Clayton and MacKinnon 2001;Philippas et al 2013;Stephen and Simon 2005) and portfolio investment strategies available for investors in capital markets (Hoesli and Hamelink 2004;Hoesli and Lekander 2008;Lynn 2009;Maurer et al 2004;Worzala and Sirmans 2003). Real estate evaluation on the basis of the Analytic Hierarchy Process (AHP) or Analytic Network Process (ANP) methodology in research is mainly used in the framework of special real estate segments, e.g., total quality management (Sarathy 2013), farmland (Aznar and Caballer 2005), mass housing planning (Chauhan et al 2008), urban development proposals (Aznar et al 2010;Gómez-Navarro et al 2009), or risk assessments (Khumpaisal and Chen 2007;Wen and Li 2013).…”

Liquidity of European Real Estate Equities: Reits and Reocs

“…listed securitized real estate vehicles also constitute homogeneous and diversified investment assets with low transaction costs (serrano and Hoesli, 2009). moreover, listed real estate offers an opportunity to invest into real estate without the problems associated with investing into private real estate, such as information asymmetries and operational risks (Hoesli and lekander, 2008). furthermore, the public real estate securities market provides investors with a vehicle to construct international property portfolios without the burden of acquiring, managing and disposing of direct property investments in distant countries with unfamiliar legal, political and market structures.…”

Neoclassical economics and new institutional economics

“…PM 33,5 Also, the private and opaque nature of the market through which real estate is traded with very limited obligations for disclosure between the parties, in turn encourages the characteristic asymmetric information in real estate transaction, often in favour of the seller (Hoesli and Lizieri, 2007;Hoesli and Lekander, 2008). These qualities, coupled with the limited number of buyers and sellers engaged in the exchange of commercial real estate assets function collectively to reduce the liquidity of the asset (Lin and Vandell, 2007;Lin and Liu, 2008).…”