End of Funds Life Project

In the past few years, an increasing number of funds have reached the end of their life and the process to liquidate, restructure or extend has been undertaken.  The success of this procedure appears to have been somewhat mixed leaving some investors and fund managers, no doubt, frustrated and disappointed. While a great deal of energy and deliberation is given to formalising the correct terms and procedures for the creation of a fund, the end of fund life process is not necessarily given the same level of engagement.  In addition, individual requirements and circumstances can change radically during the fund’s life which may result in conflict, particularly when communication and transparency are lacking. How can this be avoided? What can be learnt from situations that have gone well?

A project team, sponsored by AREF, IPF and INREV, undertook an industry consultation during the first half of 2016 in order to identify simple overriding principles that would aid the real estate industry in enhancing the end of fund life processes.  This consultation also led to the development of guidance and best practice on the key criteria identified – as detailed in the final report published on 27 September 2016 and available to download below:  

End of Fund Life Report (Sept 2016)

 

To download the INREV webinar held on 17 November 2016, in which Deborah Lloyd (Chair of the AREF, IPF and INREV Project Team) and Rachel Portlock (the report’s author) discuss the key points of the report, click here.

Members of the Project Team

Deborah Lloyd, Nabarro (Chair)
Dan Batterton, LGIM
Maurits Cammeraat, INREV
John Cartwright, AREF
Alistair Dryer, Aviva Investors
Mathieu Elshout, PGGM 
John Forbes, John Forbes Consulting 
Sue Forster, IPF 
Audrey Klein, Aerium
Rachel Portlock, Consultant
Mads Rude, Sparinvest Property Investors
Graeme Rutter, Schroder
Stefan Ziegler, KGAL