Long-term Value Methodologies in Real Estate Lending
This research forms an independent part of a wider real estate industry initiative to improve the functioning of the UK’s commercial real estate finance market. The current project has sought to identify and develop reliable metrics for detecting periods when the probability and scale of potential falls in commercial property values are high.
Having interrogated the findings of preliminary work on the topic, the University of Cambridge, in partnership with the University of Reading, has expanded the analysis of two long-term valuation methods, (Investment Value and Adjusted Market Value), reviewing alternative inputs, and rigorously tested these models in order to reach a number of conclusions.
The findings of the study are due for publication towards the end of the year, complemented by a presentation of the findings.
Implications of Retail Structural Change on Sector Allocations in Investment Portfolios
Extending beyond the UK, to consider the impact in a number of countries, , this study has analysed and quantified the influence to date on major, institutional/non-specialist real estate investment portfolios of the many changes in retailing on allocations to the sector. The research has also provided projections of how these issues may play out over the next 10 years as well as to consider what other types of real estate assets may replace retail, should long-term allocations to this sector decline.
The findings of this study, conducted by the University of the West of England, are due for publication in the autumn.
Benchmarking Real Estate Investment Performance: The Role of ESG Factors
The increased role that environmental, social and corporate governance (ESG) factors play in influencing investment decisions presents key challenges to the industry, particularly within the context of increased internationalisation of real estate investment funds. This research has undertaken a comprehensive and critical analysis of existing ESG benchmarking practices, identifying and assessing measures currently in use by wide range of global real estate investors, including real estate companies/REITs and fund managers.
The findings of the study, conducted by a consortium of researchers from the University of Western Sydney, Henley Business School, Reading, and Cass Business School, were presented at a seminar in London on 18 September and a video recording of the event will be available for members to download to coincide with publication of the final report, which is due for release later in the autumn.
Size and Structure of the UK Property Market: Review of Data Sources and Methodologies
In 2005, the IPF established a method of estimation and compiled data to provide analyses of UK commercial property by type, location and investor type, together with a comparison of real estate investment with the size of the overall UK stock of commercial real estate and other investment markets. Subsequently updated and expanded in 2014 to provide more detailed analysis, a thorough review of methodologies and exploration of the new data sources is being concluded by a team led by Cass Business School.
The report is due for publication in late-2019.
Global Capital Flows in a World of Increasing Nationalism and Protectionism
After a long period of stability leading up to the Global Financial Crisis, there appears to be a breakdown in the general consensus on how to deliver rising living standards and economic growth. Western democratic governments and civil institutions appear to be increasingly challenged by the demands of individuals and increasing power of global businesses. Different views about national identify and sovereignty are changing politics, as international institutions, such as the WTO, the IMF and the World Bank, largely formed by western powers following WW2, are under pressure and facing an uncertain future.
To facilitate a wider industry debate, this study will postulate what a more nationalistic/ protectionist world would look like and what it could entail for real estate investors specifically – market participants in 2030 could be operating in a very different environment to 2019.
Researchers Control Risks and Didobi were appointed in July 2019 and the report is scheduled for publication later this year.
Flexible Space Market – Investment Threat or Opportunity
This study will examine what is happening within the flexible office market and what the implications for the property investment sector will be. It will provide a summary of how the market has evolved (growth, size, product, etc.) together with a consideration of current and prospective occupational drivers and whether these are likely to continue or how they may change in the years ahead.
Rob Harris of Ramidus Consulting has been appointed to conduct this research and the report is scheduled for publication in early 2020.
Current Activities & Pipeline