Regulation and market trends on agenda as Crestbridge real estate head co-moderates ALFI panel at MIPIM
The most significant changes to the real estate funds industry over the coming twelve months are likely to be driven by on-going and further regulatory developments, according to a panel at one of the world’s leading property market events co-moderated recently by Crestbridge Managing Director and Head of Real Estate Christopher Bennett.
Christopher was co-moderating a panel session hosted by ALFI entitled ‘Real Estate Investment Funds – Industry Hot Topics’ at MIPIM 2016 in Cannes, held on 16th March and which featured a range of real estate experts. It was ALFI’s first event at MIPIM.
During the well-attended session, panellists discussed a range of key developments, challenges and opportunities facing the real estate sector, including how market trends and regulatory and legislative developments would impact cross-border real estate investment in the coming year.
In particular, panellists highlighted that the Luxembourg Reserved Alternative Investment Fund (RAIF) product is likely to prove a major benefit for the Luxembourg real estate investment fund industry and significantly improve the time it takes to bring a fund to market once it comes into law.
Discussing market trends, panellists also suggested that the appetite for direct real estate investment amongst insurance companies has increased since the introduction of Solvency II, on account of the 25% capital charge being relatively low. Panellists also identified a move towards ‘value add’ funds pointing out that risk-adjusted returns were often better than core returns given current pricing.
Commenting on the session, Christopher said: “This panel session brought out a number of key issues for the Luxembourg and wider real estate investment community. There’s no doubt there is still some uncertainty in markets globally and the panel pointed to the fact that volatility in financial markets, including China, is having some limited effects on real estate investment. However, the sense was that the industry is adapting well to the evolving landscape and that this proactivity is positioning the sector well for the coming twelve months.”
Christopher was joined at MIPIM by a number of Crestbridge’s Real Estate team members, including Simon Todd, Director, Head of Real Estate, Jersey; Andy Williams, Director, Real Estate, Jersey; Steven Morrice, Director, Real Estate, London; Paul Windsor, Director, London; and Gren Carr-Jones, Director, Luxembourg.
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